ConceptConceptDocsDocuments

IB Economics HL 3.1.2 GDP and GNI Question Bank

Practise IB Economics SL/HL 3.1.2 by applying gdp and gni concepts to exam-style questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • identify the relevant model, concept or evidence
  • apply the correct subject framework to the question
  • evaluate the result using clear evidence and subject terminology

3.1.2—GDP and GNI question 1

[Maximum number: 4]

The data in Table 2 refer to Kanyaland, a small, open, developing economy in 2019. All data are in billions of Kanyaland dollars (K$).

Table 2

Table 2

Question (a)

(a)

Using the data in Table 2, calculate factor income sent (paid) abroad in 2019.

Assume that the level of GDP in Kanyaland in 2009 was K$455 billion and government expenditures were K$205\mathrm{K}\$205 billion. For each additional Kanyaland dollar earned as income, it had been estimated that K$0.60\mathrm{K}\$0.60 was spent on domestic goods and services, K$0.10\mathrm{K}\$0.10 was saved, K$0.21\mathrm{K}\$0.21 was paid in taxes and K$0.09\mathrm{K}\$0.09 was spent on imported goods and services.

[ 2 ]

Question (b)

(b)

In many developing countries GNI figures are lower than GDP figures. Outline how this may be due to the high levels of foreign direct investment (FDI) in developing countries.

[ 2 ]
All question bank results loaded