National Income

Question 1

CIRCULAR FLOW OF INCOME

Why measure the National Income (NI)?

Answer 1

Question 2

CIRCULAR FLOW OF INCOME

Explain the Circular Flow of Income.

Answer 2

Question 3

CIRCULAR FLOW OF INCOME

Explain, using a circular flow of income diagram, which is meant by the multiplier effect.

Answer 3

Question 4

CIRCULAR FLOW OF INCOME

What is the Multiplier Effect?

Answer 4

Question 5

CIRCULAR FLOW OF INCOME

Describe what is meant by a ‘negative multiplier effect’

Answer 5

Question 6

CIRCULAR FLOW OF INCOME

Explain why ‘investing more in infrastructure projects’ may result in an even greater increase in National Income.

Answer 6

Question 7

GDP & GNP

Distinguish between the UK’s Gross Domestic Product (GDP) and Gross National Product (GNP)

Answer 7

Question 8

GDP & GNP

Distinguish between REAL and NOMINAL Gross Domestic Product (GDP).

Answer 8

Question 9

NATIONAL INCOME STATISTICS

Describe uses of national income statistics

Answer 9

Question 10

NATIONAL INCOME STATISTICS

Describe limitations of using national income statistics to compare economies.

Answer 10