Why is real per capita national income (GNP) not a reliable indicators of the economic well-being of different countries?
- It takes no account of difference in the average number of hours workerd
- It takes no account of property income from abroad
- It takes no account of the size of the population in different countries
- It takes no account of changes in the rate of inflation
Which of the following is the most accurate indicator of a nation's standard of living?
- gross national product
- gross domestic product
- real national income per capita
- real national income
In national income accounting, which of the following is treated as a transfer payment?
- expenditure on the government's armed forces operating in other countries
- government spending on research and development spending in the defence sector
- interest paid to holders of government debt
- salaries paid to civil servants
The chart shows real GDP and real GDP per head from 1981 - 2001
From the data in the chart, we can deduce that- Real GDP per head has increased each year since 1988
- GDP has grown more quickly than GDP per head over the last twenty years
- Productivity in the UK economy has improved each year since 1992
- Unemployment was lower in 2001 than in 1990
Real national income may be defined as
- the real value of all assets owned by the nation's inhabitants
- national income revalued at constant prices
- national income expressed in current prices
- national income net of all tax payments
The chart shows the distribution of real household disposable income in the UK in three selected years
The data shows that- Since 1980 households in the poorest 10% of households have seen the fastest growth of real disposable income
- Since 1980 the gap in real disposable incomes between the richest 10% and the poorest 10% of the population has widened
- Average real disposable incomes have fallen
- In 1999 a household earning £400 per week would be in the richest 25% of households in the UK