IB Economics HL 3.1.1 National income accounting Question Bank

Level

0 The work does not reach a standard described by the descriptors below.

1 There is limited understanding.

For a response which is accurate but is limited to one of the two approaches. OR which refers to both approaches in a vague fashion (eg "in the expenditure approach, total spending is calculated").

2 There is clear understanding.

For a clear understanding that in the expenditure approach, total spending on domestic output is summed, whereas in the income approach, incomes earned in the production of domestic output are summed.

A response which states accurately the components of each approach should be fully rewarded ie
expenditure approach =C+I+G+(X-M)
income approach = wages + profits + interest + rent.
However, it is not necessary to state these components in order to earn full marks.