5.1 - Living standards
● Standard of living: level of wealth, comfort, material goods +
necessities available to them in a country
● Economic development is the sustainable increase in living standards
for a country, typically characterised by increases in life span,
education levels, & income
5.1.1 - Indicators of living standards
Differences in standard of living within a country
1) Wealth
2) Income
3) Motivation
4) Education level
5) Ethnic background
6) Regional differences
Differences in standard of living between countries
1) GDP and level of income inequality
2) Types of industry
3) Population structure
4) Tax levels
5) Access to healthcare + education
6) Crime rate
7) Rural-urban areas
How SOL is measured
1) Real GDP per capita
2) HDI - Human development index
Real GDP per capita
↑ rGDP → ↑ overall income level → ↑ better quality of life
Advantages Disadvantages
1) Takes population size into 1) It is an average so there may be
account significant poverty in many parts
2) Adjusted for inflation of a country that has a high
3) Easy to calculate + many rGDP/capita
countries already publish this 2) Ignores gender, regions and
income gaps
● Standard of living: level of wealth, comfort, material goods +
necessities available to them in a country
● Economic development is the sustainable increase in living standards
for a country, typically characterised by increases in life span,
education levels, & income
5.1.1 - Indicators of living standards
Differences in standard of living within a country
1) Wealth
2) Income
3) Motivation
4) Education level
5) Ethnic background
6) Regional differences
Differences in standard of living between countries
1) GDP and level of income inequality
2) Types of industry
3) Population structure
4) Tax levels
5) Access to healthcare + education
6) Crime rate
7) Rural-urban areas
How SOL is measured
1) Real GDP per capita
2) HDI - Human development index
Real GDP per capita
↑ rGDP → ↑ overall income level → ↑ better quality of life
Advantages Disadvantages
1) Takes population size into 1) It is an average so there may be
account significant poverty in many parts
2) Adjusted for inflation of a country that has a high
3) Easy to calculate + many rGDP/capita
countries already publish this 2) Ignores gender, regions and
income gaps
