Living standards, poverty and economic development

Learning objectives

Explain real GDP per head and the Human Development Index as indicators of living standards, describe the components of the HDI and discuss the advantages and disadvantages of each indicator

Explain why living standards and the distribution of income differ within a country and between countries

Distinguish absolute poverty from relative poverty

Explain the causes of poverty: unemployment, low wages, illness, age and environmental factors

Discuss policies to alleviate poverty and redistribute income: promoting growth, better education and healthcare, more generous state benefits, progressive taxation and a national minimum wage

Analyse the causes and consequences of differences in economic development between countries, including differences in income, productivity, population growth, the size of each sector, saving and investment, education, healthcare and natural resources