Quelpr
6 marksNational Income Accounting

CAPE Economics Unit 2 · 2010 · Paper 2 · Question 1(a)(ii)

Discuss TWO reasons why GDP alone is not a complete measure of net economic welfare.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)Explain the difference between 'Real GDP' and 'Nominal GDP'.[4 marks]
  2. 1(b)(i)Determine the value of autonomous consumption.[1 mark]
  3. 1(b)(ii)Determine the value of the marginal propensity to consume.[1 mark]
  4. 1(b)(iii)Determine the equilibrium level of real GDP.[4 marks]
  5. 1(b)(iv)Determine the value of the multiplier.[3 marks]
  6. 1(c)(i)Briefly describe Net National Product (NNP) and state how it is measured.[3 marks]
  7. 1(c)(ii)Briefly describe Personal Disposable Income (PDI) and state how it is measured.[3 marks]

More practice: the rest of this paper · more National Income Accounting questions · all CAPE Economics Unit 2 past papers