Economic class work-Retest Marks
Student Name :
Date :
Grade : 11 IPS
time : 45 minutes
Material : Living standard and poverty
Total Marks : 51
Multiple Choice Questions (14 Marks)
Instructions: Circle the correct answer. Each question is worth 5 marks.
1. Which characteristic will show that a country has significant absolute poverty?
A. A majority of the population will have less than average income.
B. Basic living needs are not being met.
C. Most people do not have mobile phones.
D. There is a high number of people living in rural areas.
2. What is the purpose of progressive taxation?
A. An incentive for higher income individuals to work more and earn more income.
B. To generate tax revenue for the government from all income levels equally.
C. To redistribute wealth and reduce income inequality.
D. To encourage investment and savings among lower income individuals.
3. Which policy is most likely to reduce relative poverty?
A. Make income tax rates less progressive.
B. Reduce benefit payments.
C. Reduce the minimum wage.
D. Reduce the rate of sales tax.
4. Which factor below can contribute to poverty in developing countries?
A. High levels of foreign direct investment.
B. Rapid population growth.
C. Access to advanced technology.
D. Stable political institutions.
5. What does the calculation of HDI (Human Development Index) not take into
consideration?
A. Estimate of life expectancy at birth.
B. Information on the number of years of schooling.
C. Regional inequalities of investments in human capital.
D. Standard of living linked to income per head.
6. Why is the Human Development Index (HDI) a better indicator of comparative living
standards than Gross Domestic Product (GDP) per head?
A. It includes international trade.
B. It includes more measures of living standards.
C. It is measured in money terms.
D. It is more directly linked to economic growth.
7. Why is the Human Development Index (HDI) a better measure of living standards than
GDP per head?
A. It takes into account changes in output.
B. It takes into account changes in population.
C. It takes into account health and education data.
D. It takes into account inflation.
8. Which characteristic will show that a country has significant absolute poverty?
A. A majority of the population will have less than average income.
B. Basic living needs are not being met.
C. Most people do not have mobile phones.
D. There is a high number of people living in rural areas.
9. Which combination of changes is most likely to result in a fall in living standards in a
country?
A. GDP fall, inflation fall, population rise.
B. GDP fall, inflation rise, population rise.
C. GDP rise, inflation fall, population fall.
D. GDP rise, inflation rise, population fall.
10. What describes absolute and relative poverty?
A. Absolute poverty when there are low birth rates, high death rates, and high levels of
migration, relative poverty when there are high birth rates, low death rates, and low
levels of migration.
B. Absolute poverty when a person does not have enough money for food, shelter, and
clothes, relative poverty when a person earns less than others in the same society.
C. Absolute poverty when everyone has an income below US$1.90 a day, relative poverty
when half the population has an income of US$1.90 a day.
D. Absolute poverty when necessities cannot be afforded, relative poverty when luxuries
cannot be afforded.
11. What is included in the Human Development Index (HDI) of a country?
A. Net immigration.
B. Life expectancy at birth.
C. Population size.
D. Rate of population growth.
12. Which indicator would be included in the Human Development Index (HDI) for a
country?
A. Adult literacy rate.
B. Doctors per 1000 people.
C. Unemployment rate.
D. Years spent in education.
13. Which policy is most likely to reduce relative poverty?
A. Make income tax rates less progressive.
B. Reduce benefit payments.
C. Reduce the minimum wage.
D. Reduce the rate of sales tax.
14. Which factor below can contribute to poverty in developing countries?
A. High levels of foreign direct investment.
B. Rapid population growth.
C. Access to advanced technology.
D. Stable political institutions.
Essay Questions (37 Marks)
Instructions: Answer the following questions in detail. Each question is worth 25
marks.
1. According to data from the US Census Bureau, 15% of individuals in the United
States live below the poverty line, which is the minimum income level deemed
necessary to live in a given country. The aftermath of the global financial crisis led to
increased unemployment and related economic challenges, resulting in over 46
million people living in poverty in the USA — the highest level in the nation's history.
a) Define the term "poverty." [2]
b) Explain why poverty is a concern for the US government. [4]
c) Discuss whether the standard of living is always higher in developed countries than
in developing countries. [8]
2. "Explain the factors that affect living standards in countries. Compare how these
factors influence living standards in developed and developing countries."
a) Define living standards and list two main factors that affect them. [4]
b) How do economic factors affect living standards in both developed and developing
countries? [6]
c) How do social and political factors influence living standards? [5]
d) Explain two common methods used to measure living standards. How do they differ
in terms of the factors they consider? [8]
