O Level Economics chapter 5: Economic development MCQs with answers
By Team Megalecture · Updated 4 Nov 2026
43 exam-style questions on Economic development, each with the answer and a short explanation. Ten of them are below to try. The chapter test draws ten fresh questions each time and is marked the moment you finish, with your score by topic.
Differences in economic development between countries10 questions
Ten Economic development questions with answers
Try each one, then open the answer. These ten stay the same; the test draws new ones every time.
1. What is meant by an optimum population?
A
the population that gives the highest output per head
B
a population that is neither growing nor falling over time
C
the largest population that the country's farmland can feed
D
a population with exactly equal numbers of males and females
Show answer
Answer: A. At the optimum population, the number of people makes the best use of the available land, capital and technology, so output per head is maximised. A country with more people than this is over-populated.
2. Floods destroy crops and livestock in a farming region, leaving many families without income. Which cause of poverty does this show?
A
age
B
low wages
C
environmental factors
D
illness
Show answer
Answer: C. Natural events such as floods, droughts and earthquakes can destroy livelihoods, especially where families depend on farming.
3. Which of these is an example of poverty caused by age?
A
a farming family whose crops are destroyed by floods
B
a worker whose wage is too low to support her family
C
a factory worker who loses his job when the factory closes
D
an elderly person who can no longer work and has no pension
Show answer
Answer: D. Older people who can no longer earn and have little pension or savings are at risk of poverty. The other options show environmental factors, unemployment and low wages.
4. What is meant by the birth rate?
A
live births per 1,000 people per year
B
live births per 1,000 women per year
C
live births minus deaths per 1,000 people per year
D
the average number of children born to each family
Show answer
Answer: A. The birth rate is the number of live births per 1,000 of the whole population per year. Births per 1,000 women and the average number of children per family are measures of fertility, not the birth rate, and births minus deaths is the natural increase in population.
5. Why are birth rates often higher in low-income countries than in high-income countries?
A
more women go on to higher education and careers
B
the cost of bringing up children is higher
C
children may be seen as workers and as support in old age
D
better healthcare means that fewer babies and young children die
Show answer
Answer: C. Where there are few pensions and much farm work, families may want more children. Better healthcare, more education for women and higher costs of raising children tend to lower birth rates, as in high-income countries.
6. What is a possible disadvantage of a national minimum wage set above the current wage of low-paid workers?
A
all low-paid workers receive a lower income
B
workers who keep their jobs become poorer
C
some firms may employ fewer workers
D
firms' wage costs fall
Show answer
Answer: C. A minimum wage raises the pay of those who keep their jobs, but higher labour costs may lead some firms to cut jobs or hire fewer workers, which could push those workers into poverty.
7. Why might strong economic growth fail to reduce poverty in a country?
A
economic growth lowers the incomes of all households
B
the gains may go mainly to people already well off
C
economic growth always reduces the number of jobs
D
economic growth always reduces government tax revenue
Show answer
Answer: B. Growth raises total income, but if the gains go mainly to owners of capital and skilled workers, the poorest may benefit little. Policies such as education and benefits may be needed to spread the gains.
8. How does a progressive income tax help to redistribute income?
A
lower earners pay a larger share of their income than higher earners
B
everyone pays the same share of their income, so the burden is shared
C
it raises the prices of the luxury goods that rich people buy
D
higher earners pay a larger share of income, funding help for the poor
Show answer
Answer: D. A progressive tax takes a higher percentage from high incomes, which narrows the gap after tax, and the revenue can pay for benefits and services for the poor. A tax on luxury goods is an indirect tax, not an income tax.
9. What is net migration?
A
immigration plus emigration
B
immigration minus emigration
C
emigration minus immigration
D
births minus deaths
Show answer
Answer: B. Net migration is the number of people coming to live in a country minus the number leaving. It is positive when more people arrive than leave.
10. Which policy is most likely to give immediate help to households in poverty?
A
building new universities in the major cities
B
more generous cash benefits for low-income families
C
cutting the top rate of income tax for high earners
D
raising the rate of sales tax charged on basic food
Show answer
Answer: B. Cash benefits raise poor households' incomes at once. New universities help only in the long run, and the other two measures would benefit the rich or harm the poor.
43, each with the answer and a short explanation, across 4 topics: Living standards, Poverty, Population, Differences in economic development between countries. Every chapter test draws ten of them, so you can take it many times.
Is the O Level Economics chapter 5 test free?
Yes. The test, the answers and the explanations are free and need no sign-up. Sign in only if you want your scores kept across devices.
How is the chapter test marked?
The moment you press Finish: your score, the right answer and an explanation for every question, and the ones you got wrong saved in My mistakes to retry.
