Question 16
[Maximum number: 1]
The table shows selected statistics for a country.
What is the value of gross domestic product at basic prices?
A
$ 500 bn
B
$ 550 bn
C
$ 650 bn
D
$ 700 bn
CAIE A-Level Economics 4.1.3 Market to basic prices
Practise converting national income measures between market and basic prices using tax and subsidy adjustments from data tables.
How this is tested
- calculate GDP at basic prices by subtracting taxes and adding subsidies
- calculate GDP at market prices by adding taxes and subtracting subsidies
- select the correct tax and subsidy adjustment when moving between price bases