2025HSCShort answer

Q21 (b)

3 marks

Question

Explain the limitations of using income as a single measure of quality of life.

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Solution

Criteria	Marks
Explains the limitations of using income as a single measure of quality of life	3
Describes some limitations of using income as a single measure of quality of life	2
Provides some relevant information	1

Sample answer:

Income refers to the monetary rewards in return for economic resources of residents of an economy in a given period. Quality of life is a broader concept which refers to additional measures of wellbeing. Therefore, to get a more accurate view of quality of life, other indicators such as educational attainment indicative of literacy, and life expectancy which demonstrates health outcomes, should also be considered.

Answers could include:

Impact of environmental damage
Inequality of income distribution
Statistical limitations: PPP, per capita measurements
Domestic work with no monetary value
Other wellbeing indicators, for example political freedoms, work−life balance.

Supplied marking guidance · human reviewed

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Syllabus alignment

Economic Issues

Growth, employment and inflationAnalyse growth, unemployment, inflation, distribution of income and environmental sustainability.

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