CAFS Year 11 Complete Practice Exam 2025

The choice focusing on income levels and the global economy highlights the fundamental aspects of economic wellbeing. Economic wellbeing is primarily determined by an individual's or a community's financial resources, which are heavily influenced by income levels. Higher income allows individuals to access better housing, healthcare, education, and leisure activities, all of which contribute to one's overall quality of life.

Moreover, the global economy impacts local economic conditions, influencing job availability, wage levels, and the cost of goods and services. For instance, during economic growth, businesses typically thrive, leading to higher employment rates and increased disposable income for individuals. Conversely, during economic downturns, job losses and reduced wages can significantly diminish economic wellbeing.

In this context, while physical health, morals and customs, and community relationships can contribute to a person's quality of life, it is the financial aspect—specifically income and the broader economic environment—that fundamentally determines their economic wellbeing. These elements are essential to securing basic needs and improving overall economic stability.