2 marksNational Income Accounting
CAPE Economics Unit 2 · 2014 · Paper 2 · Question 1(b)(i)
Explain why intermediate goods are NOT counted in the calculation of GDP.
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Practise this questionOther parts of this question
- 1(a)Define the term 'intermediate good'.[2 marks]
- 1(b)(ii)Define the term 'value added'.[2 marks]
- 1(c)(i)a)State the formula for calculating gross domestic product (GDP) using the expenditure approach.[2 marks]
- 1(c)(i)b)Calculate the GDP for Oilandia, using the expenditure approach.[2 marks]
- 1(c)(ii)a)Explain the income approach for calculating GDP.[3 marks]
- 1(c)(ii)b)Calculate the GDP for Oilandia using the income approach.[3 marks]
- 1(d)Describe THREE types of 'leakages' from the circular flow of an economy.[9 marks]
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