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4 marksNational Income Accounting

CAPE Economics Unit 2 · 2009 · Paper 2 · Question 1(b)(ii)a)

The table provides economic data for Country Y in millions of dollars.

Explain how GDP is calculated using the income approach.

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Other parts of this question

  1. 1(a)(i)Define inflation and state how it is measured.[4 marks]
  2. 1(a)(ii)Define economic growth and state how it is measured.[4 marks]
  3. 1(a)(iii)Define unemployment rate and state how it is measured.[4 marks]
  4. 1(a)(iv)Define balance of payments and state how it is measured.[4 marks]
  5. 1(b)(i)a)Explain how Gross Domestic Product (GDP) is calculated using the expenditure approach.[4 marks]
  6. 1(b)(i)b)Use the expenditure approach to calculate the GDP for Country Y.[6 marks]
  7. 1(b)(ii)b)Use the income approach to calculate the GDP for Country Y.[6 marks]
  8. 1(c)(i)State ONE reason why an individual buying a used textbook will OR will NOT be included in the calculation of a country's GDP.[3 marks]
  9. 1(c)(ii)State ONE reason why a merchant selling United States currency on the black market will OR will NOT be included in the calculation of a country's GDP.[3 marks]
  10. 1(c)(iii)State ONE reason why a meat processing plant building a new factory will OR will NOT be included in the calculation of a country's GDP.[3 marks]
  11. 1(d)Explain why GDP per capita is NOT an adequate measure of the standard of living of a country.[5 marks]

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