Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

What might lead the official statistics for a developing country's national income per head to exaggerate the actual economic welfare of its inhabitants?

  • Aif there is dependence on barter in internal trade
  • Bif subsistence agriculture dominates total economic activity
  • Cif services are an important component of exports
  • Dif there is extreme income inequality

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