Economics (AS & A Level) · May / June 2022 · Paper 33 · Question 19

What could cause the official statistics for the national income per head of a developing country to overstate the true level of economic well-being of its inhabitants?

1. Aif there is dependence on barter in internal trade
2. Bif subsistence agriculture dominates total economic activity
3. Cif services are an important component of exports
4. Dif there is extreme income inequality

As printed in the paper