Section 5 - Economic development
As an economy develops there will be changes in population, living standards, poverty and income
redistribution. Therefore, the effects of changes in the size and structure of population and of other influences on development in a variety of countries are explored.

5.1 Living standards - Syllabus aim is to know the indicators of living standards and to understand how to compare living standards and income distribution.
​Guidance
- Real GDP per head and the Human Development Index (HDI).
- The components of real GDP and HDI.
- The advantages and disadvantages of real GDP and HDI.
- Reasons for differences in living standards and income distribution within and between countries.
5.2 Poverty - Syllabus aim is to understand the definition of absolute and relative poverty, the causes of poverty and policies to alleviate poverty and redistribute
income.
​Guidance
- The difference between the two terms.
- The causes of poverty including unemployment, low wages, illness and age.
- Policies including those promoting economic growth, improved education, more generous state 
benefits, progressive taxation, and national minimum wage.
5.3 Population - Syllabus aim is to understand the factors that affect population growth, reasons for different rates of population growth, the effects of changes in the size and the structure of population on different countries
​Guidance
- Birth rate, death rate, net migration, immigration and emigration.
- How and why birth rates, death rates and net migration vary between countries.
- The concept of an optimum population. The effects of increases and decreases in population size and  changes in the age and gender distribution of population.
Note: interpretation of a population pyramid is required, but drawing is not.
5.4 Differences in economic development between countries - Syllabus aim is to understand differences in economic development between countries.
​Guidance
- Causes and impacts of differences in income; productivity; population growth; size of primary, secondary and tertiary sectors; saving and
investment; education; and healthcare.