Panem, the fictitious future country where the story takes place, encompasses several different settings which each play a role in the story. District 12 is a dark and dirty place full of downtrodden people just trying to survive. We see the anger and the strength this type of life has given Katniss. A child that might have grown to a typical, happy girl is forced to become a hardened hunter with a fire inside. There are other districts as well, but these are not really focused on until the later books. The capital of Panem is in direct contrast to life in the districts. Here people have plenty to eat and ample supplies. The people are decadent and absorbed with frivolous concerns like fashion and cosmetic procedures. They watch the games for entertainment where the district people watch the games with horror. Of course, much of the novel takes place inside an arena. Here we can see the cruelty of the game makers and the contrast between each district's opinion of the capital. The various places in Panem allow the characters to move and change as the novel progresses. These settings provide contrast between each other and the characters themselves. We can see the characters' true natures far more easily against such a contrasting backdrop.
The setting in The Hunger Games takes place on earth, but in a more post apocalyptic world. Obviously that type of society, that is described in the novel, doesn't exist today, and that is why it is a fictional book in a future setting.
A.The setting is future day earth.
B. It shows what could possibly happen when the population skyrockets.