National income statistics are often used as a measure of the standard of living. Consider to what extent national income statistics can be used to compare the standard of living between low-income countries and high-income countries.

National income statistics are often used as a measure of the standard of living.

Consider to what extent national income statistics can be used to compare the standard of living between low-incomes and high-income and countries.

Use Table A: AO1 Knowledge and understanding and AO2 Analysis and Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks.
AO3 out of 6 marks.
Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis
- Definition of standard of living
- Distinction between high/low income countries e.g. per capita income
- The answer should provide reasons for the difficulties of comparison of different countries due to culture, climate, subsistence sector, informal economy, difficulty of data collection, distribution of income, exchange rates, purchasing power.
Comment on which measures of national income should be used.
AO3 Evaluation (max 6 marks)
Assessment of the link between using national income figures and the standard of living.
Alternative measures to develop the extent national income statistics can be used in relation to low/high income and countries