CAIE A-Level Economics 4.1.4 Gross to net values
Practise converting gross national measures to net values by recognising depreciation and interpreting national accounts tables.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- AS
Exam points
- explain why NNI is lower than GNI when fixed capital has depreciated
- calculate net national income from a table after allowing for depreciation
- distinguish depreciation from inflation or overseas income flows in NNI questions
4.1.4—Gross to net values question 1
[Maximum number: 1]
A country's net national income (NNI) is less than its gross national income (GNI).
What does this mean?
A
incomes earned overseas were less than incomes sent overseas
B
inflation has been accounted for in NNI but not in GNI
C
the country's exports decreased
D
there has been a net depreciation in the value of the country's fixed capital assets
D
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