Question 16
[Maximum number: 1]
Which source of income is not included in measuring real GDP?
A
pension paid to retired people
B
profits made by firms
C
rent paid to landlords
D
wages paid to nurses
CAIE A-Level Economics 4.1 National Income Statistics Question Bank
Practise selecting items for national income, converting GDP between basic and market prices and moving from gross to net or domestic to national measures.
Exam points
- exclude transfers and unpaid benefits while including recorded factor incomes and output
- convert market-price GDP to basic prices by subtracting indirect taxes and adding subsidies
- derive GNI or NNI using net overseas income and capital consumption in the correct direction
Covered syllabus points
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
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
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