CAIE A-Level Economics AS 4.1 National Income Statistics Questions

Practise selecting items for national income, converting GDP between basic and market prices and moving from gross to net or domestic to national measures.

Exam points

exclude transfers and unpaid benefits while including recorded factor incomes and output
convert market-price GDP to basic prices by subtracting indirect taxes and adding subsidies
derive GNI or NNI using net overseas income and capital consumption in the correct direction

Covered syllabus points

4.1.1—National income 4.1.2—GDP, GNI and NNI 4.1.3—Market to basic prices 4.1.4—Gross to net values

[Maximum number: 1]

What is not included in the measurement of national income?

dividends paid to shareholders

overtime payments

rents from government-owned houses

welfare benefit payments

[Maximum number: 1]

For a given year, economy X publishes the following.

Table for Question 2 — CAIE A-Level Economics AS

What is the size of the Gross National Income (GNI) for country X?

$ 75 bn

$ 85 bn

$ 110 bn

$ 115 bn

[Maximum number: 1]

The table below shows some national income statistics.

Table for Question 3 — CAIE A-Level Economics AS

What is GDP at market prices?

$ 276 b n

$ 284 bn

$ 316 bn

$ 324 bn

[Maximum number: 1]

A country's net national income (NNI) is less than its gross national income (GNI).
What does this mean?

incomes earned overseas were less than incomes sent overseas

inflation has been accounted for in NNI but not in GNI

the country's exports decreased

there has been a net depreciation in the value of the country's fixed capital assets

All question bank results loaded

Covered syllabus points

Question 1

Question 2

Question 3

Question 4