CAIE A-Level Economics 4.1.1 National income

CAIE A-Level Economics 4.1.1 National income
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise deciding what national income measures include, exclude and miss when judging output, income and living standards.

How this is tested

  • distinguish factor incomes from transfer payments in national income accounts
  • interpret how pensions, benefits or unpaid work affect measured national income
  • judge when GDP is a weak measure of living standards or economic welfare

Question 21

[Maximum number: 1]

A government statistical office measured changes in income from employment, pensions and benefits, then subtracted income tax and welfare contributions and adjusted for inflation.

What did the final figure represent?

A

changes in nominal income

B

changes in nominal net earnings

C

changes in real disposable income

D

changes in real gross earnings