1. The table below gives the values of different expenditures in a particular nation during 2021.
   1. What was the value of net exports of goods and services in 2021?

Item	Dollars (Billions)
Consumption expenditure.	2,814
Investment.
Government purchases of goods and services.	1,899
Exports of goods and services.	900
Imports of goods and services.	876
Nominal GDP	7,349

Required

[2 marks]

(ii) What was the level of investmentequal to in 2020?

[2 marks]

1. The table below presents the production and prices in a very small economy during a pandemic. Use 2020 as the base period.

	2020	2021
Item	Quantity	Price	Quantity	Price
Domestic Pets Adopted	220,000	$120	480,000	$140
Gym Equipment	50,000	$1,300	400,000	$1,200
Airfares	3,329,000	$280	194,290	$300

Required

1. What are the nominal and the real GDP equal to in 2020? [1+1=2 marks]

1. What are the nominal and the real GDP equal to in 2021? [1+2=3 marks]
   1. Explain the disadvantage of measuring GDP in nominal terms rather than real terms, when studying movement in a nation's GDP over time. [2 marks]

1. In country B the GDP per capita is $20,000 per person, but most of the population is starving. Yet in country C, the GDP per capita is $3,000 per person but the population is happy and well fed.

Required

With reference to the above example, identify and explain at least three weaknessesin the use of GDP as a measure of national welfare.

[6 marks]

[Question 4 = 17 marks]