Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

(a)[12]

The two economic indicators are Gross Domestic Product (GDP) at market prices and Net National Income (NNI) at factor cost. Explain what is meant by an economic indicator and outline the differences between the two indicators named.

(b)[13]

Discuss whether GDP is the most suitable indicator for comparing the standard of living in a developing country with that in a developed country.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Explaining an economic indicator

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