National income statistics

The table presents data for an economy. 2010 2011 2012 2013 2014 Gross Domestic Product (GDP) at current prices ($ billion) 200 220 240 300 320 GDP deflator (price index) 100 109 125 149 154 In which year did real GDP fall compared with the previous year?

Feb/March 2016

A government may use personal disposable income per head as an indicator of the standard of living. What does this measure fail to include?

Feb/March 2016

The table presents estimates made when the train drivers’ strike had ended. $ (000s) revenue lost from train journeys 600 value attributed to the extra leisure time of the strikers 20 government tax revenue lost 40 overtime pay for police 30 By how much did the strike reduce the measured level of national income?

Feb/March 2016

A country’s real national income per head rises. What might account for this being accompanied by a decrease in households’ standard of living?

Feb/March 2017

After a company merger, a director is made redundant. He had been paid a salary of $80 000. He has an entitlement to an annual private pension of $30 000. In the first year after becoming redundant, he gains $40 000 from consultancy fees and cuts his spending by $8000 by dismissing his gardener. What is the change in measured national income in that first year?

Feb/March 2017

Discuss whether a rise in a country's national income is a reliable sign that the standard of living for its people has improved.

Feb/March 2017

In a single year, a country's national output measured using money prices rose by 8%, while the index of prices for every good and service produced in the country rose by 3%. By how much did the real national output increase?

Feb/March 2018

What would be the key factor for arranging countries in order of their standard of living in a given year?

Feb/March 2018

The government pays money to a worker who is unemployed as a benefit. Why is this known as a transfer payment?

Feb/March 2019

The figures in the table come from a country’s national income accounts: consumer expenditure $250m, investment $100m, government expenditure $150m, exports $100m, imports $150m, taxes $80m, subsidies $40m. What is the value of national income at factor cost in $ million?

Feb/March 2019

Which source of income is excluded when real GDP is measured?

Feb/March 2019

What changes to real GNP per head could make it a more dependable measure when comparing standards of living across different countries?

Feb/March 2019

The figures in the table come from a country’s national income accounts: national income $600m, consumer spending $400m, investment $80m, government spending on goods and services $100m, exports $140m. What is the value of imports in $ million?

Feb/March 2019

In the income method of calculating national income, what would be excluded?

Feb/March 2020

What changes to basic income at points W and X could be included in the calculation to arrive at disposable income?

Feb/March 2020

Governments want statistics about the standard of living. They assess the value of material goods and services. Non-material characteristics that influence the standard of living are not easy to measure. What is an example of a non-material characteristic?

Feb/March 2021

Which item is excluded from National Income accounts?

Feb/March 2022

The table presents some information taken from a country’s national accounts. What is the net national income of the country?

Feb/March 2023

The table presents real GDP as an index number for each quarter of 2021 (2020 = 100). Q1 99.4; Q2 99.3; Q3 100.1; Q4 100.4. What conclusion can be drawn from the table?

Feb/March 2024

During a 1-year period, nominal national income rose by 2%, inflation was 3% and population grew by 1%. Which statement is correct?

Feb/March 2024

A country’s money income increases by 10% while its population decreases by 10% over one year. What is likely to occur to the national income per head?

Feb/March 2025

Explain two methods used in national income statistics to calculate gross domestic product.

May/June 2005

Explain what is meant by ‘GDP per capita’.

May/June 2006

Explain what GDP means.

May/June 2007

Some people argue that they are better off in a rural area, where congestion and pollution are lower. Others prefer cities because they provide employment and a wider range of leisure activities. If opinions about living standards differ within one country in this way, is there ever any chance of comparing living standards between countries accurately?

May/June 2007

How might the North Sea oil industry influence the UK's national income?

May/June 2008

Explain why an economy may encounter problems if the internal value of its money is unstable.

May/June 2009

Explain whether the money sent to Kenya by Kenyans working in the UK would count in Kenya’s GDP.

May/June 2009

A government makes all of its young citizens do community service for 6 months. The wages given to those doing the community service are lower than the pay they would otherwise have received. What impact will this have on recorded GDP and on national welfare?

May/June 2010

From 2008 to 2009, a country’s national income measured at current prices rose by 15 %. Over the same period, inflation in the country was 5 %. Which index number most nearly shows the country’s national income in 2009 at 2008 prices (2008 = 100)?

May/June 2010

A government makes every young citizen carry out community service for a period of 6 months. The pay given to those doing the community service is lower than the earnings they would otherwise have received. What impact will this have on measured GDP and on national welfare?

May/June 2010

From 2008 to 2009, a country’s national income measured at current prices rose by 15%. Over the same period, inflation in the country was 5%. Which index number most nearly shows the country’s national income in 2009 at 2008 prices (2008 = 100)?

May/June 2010

A government obliges all of its young citizens to perform community service for 6 months. The pay received by those doing the community service is lower than what they would otherwise have earned. What effect will this have on measured GDP and on national welfare?

May/June 2010

From 2008 to 2009, a country’s national income at current prices rose by 15%. Over the same period, the country had 5% inflation. Which index number is closest to the country’s national income in 2009 at 2008 prices (2008 = 100)?

May/June 2010

Which evidence in the data shows that the economic situation in the US improved after December 2008?

May/June 2010

What evidence in the data shows that the economic situation in the US improved after December 2008?

May/June 2010

Explain two additional pieces of information that would help when judging Australia’s international financial position.

May/June 2011

Explain what GDP means and describe the alternative ways in which it is calculated.

May/June 2011

Explain what GDP means.

May/June 2011

Explain what GDP means.

May/June 2011

A government uses real personal disposable income per head to measure the standard of living. What does this measure not consider?

May/June 2012

Why could Gross National Product (GNP) per capita be a misleading measure when comparing living standards across different countries?

May/June 2012

Does the information about the size of the economy (GDP) by itself allow you to conclude that the average person in Italy is better off than the average person in Ireland? Give a brief explanation.

May/June 2012

What factors determine the level of investment, and how do changes in investment expenditure influence GDP?

May/June 2012

What changes to real GNP per head could make it a more dependable measure for comparing living standards across different countries?

May/June 2013

National income statistics indicate that real GDP per head is 25% greater in country X than in country Y. Why may this difference overstate the difference in average living standards between the two countries?

May/June 2013

What changes to real GNP per head could make it a more dependable measure when standards of living are compared across different countries?

May/June 2013

Governments frequently claim that the standard of living in their economy has improved and back up this claim by pointing to several economic indicators. One indicator they rely on is GDP. Discuss whether GDP is a dependable indicator of changes in the standard of living in an economy.

May/June 2013

Discuss the extent to which GDP is a dependable indicator of changes in the standard of living within an economy.

May/June 2013

During Year 1, the cost of a barrel of oil rose from $60 to $110. In Year 2, it climbed again to $115 per barrel. Suppose that any change in oil prices affects the overall price level straight away and that the Consumer Price Index weightings do not change. What effect will the oil price changes have on a country’s Consumer Price Index and on its inflation rate in Year 2 compared with Year 1?

May/June 2014

The figures in the table are drawn from a country’s national income accounts. State the value of exports.

May/June 2014

During a stated period, money income in an economy rose by 6%. In that same period, the average level of prices increased by 4%. What can be concluded from this?

May/June 2014

The data in the table are drawn from a country’s national income accounts. Calculate the value of exports. (national income $1000m; consumer spending $750m; investment $100m; government spending $170m; taxation $110m; imports $120m)

May/June 2014

In 2012, a survey of household expenditure chose X and Y to make up the basket of goods used for a price index. The index had a value of 100 in 2012. By 2013, its value had risen to 116. Over 2013, the prices of X and Y rose by 10% and 20%, respectively. What percentage weights were assigned to X and Y when the index was calculated?

May/June 2015

Over one year, a country’s national income measured in money terms rose by 5%, the general level of prices rose by 4% and the total population rose by 2%. What was the approximate change in real income per person?

May/June 2015

In 2012, a table showing Gross Domestic Product (GDP) per head indicated that only three of the world's ten richest countries had populations above 7 million. These were the United States: 315 million; the United Arab Emirates: 8.2 million; and Switzerland: 8 million. Explain how GDP is calculated and show how GDP at market prices is different from net national income at factor cost (basic prices).

May/June 2015

Which of the following counts as a transfer payment?

May/June 2016

What is excluded from the measurement of national income?

May/June 2016

The graphs illustrate percentage changes in money GDP and consumer prices in a country from 2013 to 2015. Which conclusion can be inferred from the graphs?

May/June 2016

What could make a country’s estimated monetary value of the ‘Measure of Economic Welfare’ higher than its ‘Gross National Product’?

May/June 2016

What alterations to real GNP per head could make it a more dependable indicator when comparing standards of living in different countries?

May/June 2016

The table presents real GDP per head, measured in $US, for countries X and Y across a three-year period. What conclusion can definitely be drawn from the data?

May/June 2016

Think about whether economic growth will always lead to inflation.

May/June 2016

Over a given time span, a country whose population remains unchanged raises its output per person. At the same time, pollution in rivers and the air rises sharply. If nothing else changes, which indicator would suggest a fall in living standards?

May/June 2017

The graphs below illustrate percentage changes in money GDP and consumer prices in a country from 2008 to 2010. What conclusion can be inferred from the graphs?

May/June 2017

Which factor could make the official statistics for a developing country’s national income per head appear higher than the actual level of economic well-being of its population?

May/June 2017

Estimates for 2015 placed New Zealand’s GDP at US$191 billion, Peru’s at US$190 billion and Romania’s at US$189 billion. Do these amounts by themselves provide enough evidence that the standard of living in the three countries was very similar?

May/June 2017

The table shows data on household spending in the UK economy from 2008 to 2010. What conclusion can be drawn from the data?

May/June 2018

Which of the following is not an example of a transfer payment?

May/June 2018

A government statistical office calculated the changes in income from employment, pensions and benefits, then deducted income tax and welfare contributions and made an adjustment for inflation. What did the resulting figure represent?

May/June 2018

Which item is not a transfer payment?

May/June 2018

The table illustrates how three economic indicators changed over a two-year period in a country. In which year would GDP have been the most precise indicator of the standard of living in that country?

May/June 2018

Growth rates may be worked out by using year-to-year changes in the value of GDP. Why is real GDP per head regarded as a better indicator than nominal GDP per head for this calculation?

May/June 2018

The data shown in the table are drawn from a country’s national income accounts. What is the national income value?

May/June 2018

What action will certainly raise a country’s Gross National Product?

May/June 2018

What is it that is likely to make a country’s national income a less dependable indicator of the standard of living?

May/June 2018

When comparing living standards across different countries, which of the following is not a reason that such comparisons may be misleading?

May/June 2018

The table shows how a country's population, price level and Gross Domestic Product (GDP) changed. What changes occurred in real GDP and real GDP per head between year 1 and year 2?

May/June 2019

Which one of the following counts as a transfer payment?

May/June 2019

If GDP at factor cost is already known, how is GDP at market prices calculated?

May/June 2019

Which features of the population, together with the size of the informal economy and the inflation rate, would make Gross Domestic Product (GDP) likely to be a fairly accurate way of comparing the standard of living over time?

May/June 2019

What is excluded from the measurement of national income?

May/June 2019

The table presents the yearly percentage (%) change in China’s GDP, together with the contribution made by some of its component parts, from 2006 to 2012. What conclusions can be drawn about China’s economy over 2006 to 2012?

May/June 2019

How can GDP at market prices be worked out when GDP at factor cost is already known?

May/June 2019

Which features of the population, together with the size of the informal economy and the inflation rate, would suggest that Gross Domestic Product (GDP) is likely to be a fairly accurate way of comparing the standard of living over time?

May/June 2019

A teenager was given a $50 cheque by her parents for her birthday. She deposited the cheque into her savings account at the bank. Why does this gift count as a transfer payment?

May/June 2020

The table presents the levels of consumption expenditure and savings for the family incomes given. Across the disposable income range shown, as income increases the marginal propensity to consume

May/June 2020

Over one year, a country’s national income measured in money terms rose by 3%, prices rose by 4% and total population rose by 1%. Approximately how much did real income per head change?

May/June 2020

What adjustment is needed to convert GDP at market prices (producer prices) into GDP at factor cost?

May/June 2020

The table sets out the levels of consumption expenditure and savings for the family incomes given. Across the disposable income range shown, when income increases the marginal propensity to consume

May/June 2020

Over one year, a country's national income measured in money terms rose by 3%, the general level of prices rose by 4%, and the total population rose by 1%. Approximately what was the change in real income per head?

May/June 2020

What does the term nudge theory mean?

May/June 2020

A government’s spending over one year comprises the following items: $m pensions for elderly people 200, welfare payments to sick people 200, spending on hospitals 150, payment to unemployed workers 100, defence spending 100, teachers’ salaries 50. What is the total amount of transfer payments made by this government in $m?

May/June 2021

The Measure of Economic Welfare (MEW) is often seen as a better indicator of economic welfare than Gross Domestic Product (GDP) per head. What is also included when MEW is calculated?

May/June 2021

Which statement concerning national income accounting is true?

May/June 2021

How do a country’s gross domestic product and its gross national income differ?

May/June 2021

The Measure of Economic Welfare (MEW) is often viewed as a more effective indicator of economic welfare than Gross Domestic Product (GDP) per head. What else is added when MEW is calculated?

May/June 2021

Which of the following statements about national income accounting is correct?

May/June 2021

Discuss the extent to which the Human Development Index (HDI) and the Measure of Economic Welfare (MEW) are better indicators of living standards than Gross National Income (GNI).

May/June 2021

The table gives a country's total output and its mean price for each of three years. year output (millions) price ($) 1 10 20 2 12 24 3 13 26 What conclusion can be drawn about output?

May/June 2022