Economics (AS & A Level) · May / June 2021 · Paper 31 · Question 21

Which statement about national income accounting is correct?

1. ADepreciation does not need to be subtracted from GDP figures because it has already been taken into account by firms.
2. BGDP greatly overstates the true value of output because some of the profit it includes is supernormal profit.
3. CGDP is a better measure of living standards than GNP because net property income from abroad is not available for citizens.
4. DGNP per capita ignores many important factors that affect citizens' living standards.

As printed in the paper