Measuring economic performance: GDP & national income

Selected economic data on Morocco and Pakistan, 2021, constant values.

(Source adapted from: https://hdr.undp.org)

With reference to the table above, which one of the following is correct?

than in Pakistan

With reference to the data provided, explain one limitation of using GDP to compare living standards between countries.

UK real GDP, 2020–2022

*2022 figures are forecast

(Source: adapted from https://www.ons.gov.uk/economy/grossdomesticproductgdp)

Calculate the value of the total forecast GDP in 2022.

Explain one likely cost of UK real GDP falling by 9.9% in 2020.

Which one of the following is most likely to lead to an increase in potential economic growth?

An increase in:

Using a Lorenz curve diagram, explain how income inequality is measured using the Gini coefficient. Refer to Extract A in your answer.

With reference to Figure 1 and Extract A, examine two likely causes of income inequality within the UK.

With reference to Figure 2, assess whether an increase in real income improves subjective happiness within the UK.

With reference to Extract C and your own knowledge, discuss methods the UK government could use to increase tax revenue.

With reference to Extract B, discuss the benefits of an increase in infrastructure spending on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer.

GDP at Purchasing Power Parities, Germany and France (nominal, trillions of US dollars) 2010–2017.

(Source: https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2017&locations=DE&st art=1970&view=chart)

From the data in the graph above, which one of the following may be deduced?

Germany’s GDP did too

Calculate the percentage change in Germany’s nominal GDP from 2016 to 2017.

Explain one reason why Purchasing Power Parities are used.

UK real Gross Domestic Product (GDP), annual percentage change 2014–2017

(Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/ihyp/qna)

Total real UK GDP in 2016 was £200 000 million. With reference to the chart above, calculate the total real UK GDP for 2017. You are advised to show your working.

Explain the term ‘real gross domestic product’.

With reference to the chart on page 2, which one of the following is correct over the period shown?

UK real Gross Domestic Product (GDP), annual percentage change 2014–2017

(Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/ihyp/qna)

Total real UK GDP in 2016 was £200 000 million. With reference to the chart above, calculate the total real UK GDP for 2017. You are advised to show your working.

Explain the term ‘real gross domestic product’.

With reference to the chart on page 2, which one of the following is correct over the period shown?

With specific reference to Figure 3, explain why productivity is measured by ‘GDP per hour worked, nominal values at PPPs’.

Apart from literacy and numeracy skills in young workers, examine one reason for the trend in productivity in the UK, over the period shown in Figure 4.

Discuss factors that are causing many high street retailers in the UK to close some branches or shut down completely. Use a cost and revenue diagram to support your answer.

EITHER

Evaluate possible microeconomic and macroeconomic policies which could be used to improve UK competitiveness.

Evaluate the microeconomic and macroeconomic effects of a decline in the literacy and numeracy skills of a country’s young workers.

Write your answer here:

With specific reference to Figure 3, explain why productivity is measured by ‘GDP per hour worked, nominal values at PPPs’.

Apart from literacy and numeracy skills in young workers, examine one reason for the trend in productivity in the UK, over the period shown in Figure 4.

Discuss factors that are causing many high street retailers in the UK to close some branches or shut down completely. Use a cost and revenue diagram to support your answer.

EITHER

Evaluate possible microeconomic and macroeconomic policies which could be used to improve UK competitiveness.

Evaluate the microeconomic and macroeconomic effects of a decline in the literacy and numeracy skills of a country’s young workers.

Write your answer here:

With reference to Extract A, explain the role of forward markets in currencies.

With reference to Extract A and Figure 1, examine the likely impact of the change in the sterling exchange rate on the UK economy.

With reference to the last paragraph in Extract C, assess the impact of a fall in real incomes on subjective happiness.

With reference to Extract C, discuss the potential conflicts between macroeconomic objectives when the central bank attempts to control inflation.

Discuss whether providing substantial government financial support to banks is the best policy response during a financial crisis.