CAIE A-Level Economics 4.1.4 Gross to net values

CAIE A-Level Economics 4.1.4 Gross to net values
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise converting gross national measures to net values by recognising depreciation and interpreting national accounts tables.

How this is tested

  • explain why NNI is lower than GNI when fixed capital has depreciated
  • calculate net national income from a table after allowing for depreciation
  • distinguish depreciation from inflation or overseas income flows in NNI questions

Question 16

[Maximum number: 1]

A country's net national income (NNI) is less than its gross national income (GNI).
What does this mean?

A

incomes earned overseas were less than incomes sent overseas

B

inflation has been accounted for in NNI but not in GNI

C

the country's exports decreased

D

there has been a net depreciation in the value of the country's fixed capital assets