To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England?

AQA A-Level Economics June 2024 10 Mark Question

To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England? (10 marks)

Whether one group of people are better off than another group of people could refer to living standards. Standard of living refers to the ability of people to satisfy their needs and wants. This could be measured by their incomes but also other factors.

Figure 2 could suggest that people living in the SE are better off than people living in the NE as it shows that there is a lower unemployment rate for people aged over 16. Unemployment refers to the number of people who are willing and able to work but cannot find a job. The data show that the unemployment rate in the South East was 3%, compared with 4.2% in the North East. The lower the unemployment rate, the more people are working and earning income. When incomes rise, people can afford more, which helps them satisfy their needs and wants. Therefore, we can infer that people in the South East have a higher standard of living. However, a limitation of using the data in Figure 2 is that it shows unemployment rates but not the types of jobs people hold. For example, unemployment may be lower in the South East, but many workers may be in part-time or low-skilled positions. As a result, wages could be low and quality of life might be affected.

Figure 3 also suggests that residents of the south-east are better off than those in the north-east. It shows GDP per capita is higher in the south-east: £34,516 compared with £23,100. This indicates higher earnings per person, implying they can afford more goods and services to meet their needs and wants. One limitation is that it doesn't account for the cost of living in the two regions. The south-east may have a higher cost of living, so GDP per head alone doesn't necessarily mean living in the south-east is better than living in the north-east.

Lastly, Figure 5 shows that people in the South East are likely to be better off than those in the North East. This is evident because house prices are considerably higher, more than twice as high in the South East at £402,000 per average home compared to £163,000 in the North East. Higher house prices suggest that people living in the South East are wealthier, as they own a home worth more. This indicates that over their lifetimes they have accumulated more income and therefore more wealth, making it more likely they could afford nicer things. One limitation of this data is that it only shows house prices for October 2022. It also shows that the percentage change in the previous year was 11.6 in the North East, which is actually higher than the 10% increase in the South East. This suggests that, very slowly, the North East is catching up with the South East.

Overall, I would conclude that living in the South East is better off than living in the North East, as there is evidence that employment rates, income, and house prices are higher in the South East. However, there is some evidence to suggest that living in the North East is becoming better. Additionally, Figure 4 shows that people in the North East are receiving more support, as public spending per head is actually higher. This compensates for lower incomes.

A-Level Economics Tutoring

I offer one-to-one and small group A-Level Economics tutoring for students across the UK and internationally. With 87+ five-star Google reviews and tutoring experience since 2017, I specialise in helping students understand difficult concepts and improve their exam technique.