What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to national income statistics. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on national income statistics, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Treating national income as a stock. Wrong. It is measured over a period.
- Adding the value of every transaction. Wrong. Intermediate goods create double counting. Count final output or value added.
- Defining GDP by ownership. Wrong. GDP depends on domestic production location.
- Defining GNI as output inside the country. That is GDP. GNI adjusts for cross-border primary income.
- Adding income paid abroad. Income paid abroad is subtracted when finding net primary income from abroad.
- Assuming GNI must exceed GDP. Wrong. Net primary income from abroad can be negative.
- Deducting depreciation twice. GDP and GNI are already gross. Deduct depreciation once to obtain the corresponding net measure.
- Confusing depreciation with inflation. Depreciation is consumption of fixed capital, not a rise in the price level.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: National Income Statistics revision notes.