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A-LevelEconomicsThe macroeconomy9708/32 · Oct/Nov 2018 · Q221 Mark

Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranked above country Y. Which factor might have caused this ranking to be incorrect?

  1. Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranked above country Y. Which factor might have caused this ranking to be incorrect? A Actual market exchange rates were used rather than purchasing power parity rates. B Government spending on transfer payments was higher in country Y than in country X. C Inflation was higher in country X than in country Y. D The distribution of income was more unequal in country X than in country Y.[1]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

  1. [1] A

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Oct/Nov 2018 Paper 3 Variant 2, question 22.

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