Question 1
With reference to the income, output and expenditure approaches, explain how the real gross national product (GNP)/gross national income (GNI) per capita of a country can be measured.
Answers may include:
- definitions of real GNP/GNI per capita, income, output and expenditure approaches
- diagram to show the circular flow of income
- explanation of how the income, output and expenditure approaches are used to calculate GDP and adding net property income gives GNI/GNP. This is adjusted to get real GNP/GNI per capita by allowing for inflation and population
- examples of the components of the income, output and expenditure approaches.
Assessment Criteria
Level 0 (0 marks): The work does not meet a standard described by the descriptors below.
Level 1 (1-3 marks): There is little understanding of the specific demands of the question. Relevant economic terms are not defined. There is very little knowledge of relevant economic theory. There are significant errors.
Level 2 (4-6 marks): There is some understanding of the specific demands of the question. Some relevant economic terms are defined. There is some knowledge of relevant economic theory. There are some errors.
Level 3 (7-8 marks): There is understanding of the specific demands of the question. Relevant economic terms are defined. Relevant economic theory is explained and applied. Where appropriate, diagrams are included and applied. Where appropriate, examples are used. There are few errors.
Level 4 (9-10 marks): There is understanding of the specific demands of the question. Relevant economic terms are clearly defined. Relevant economic theory is clearly explained and applied. Where appropriate, diagrams are included and applied effectively. Where appropriate, examples are used effectively. There are no significant errors.