A Level Economics (9708)•9708/13/M/J/23
Explanation
Net National Income Calculation
Steps:
- Identify Gross National Product (GNP) from the table as the starting point.
- Subtract depreciation to get Net National Product (NNP).
- Adjust NNP for indirect taxes minus subsidies to obtain Net National Income at factor cost.
- Sum the final figure to reach US$2700bn.
Why A is correct:
- Net national income is GNP minus depreciation and net indirect taxes, yielding US$2700bn per standard formula: NNI = GNP - Depreciation - (Indirect Taxes - Subsidies).
Why the others are wrong:
- B includes gross figures without depreciation adjustment.
- C subtracts too much, possibly confusing with net domestic product.
- D uses unadjusted gross national product.
Final answer: A
Topic: National income statistics
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