Which statement about national income accounting is correct?
A.
Depreciation does not need to be subtracted from GDP figures because it has already been taken into account by firms.
B.
GDP greatly overstates the true value of output because some of the profit it includes is supernormal profit.
C.
GDP is a better measure of living standards than GNP because net property income from abroad is not available for citizens.
D.
GNP per capita ignores many important factors that affect citizens' living standards.
Exam No：9708_s21_qp_33 Year：2021 Question No：21
Answer:
D
Knowledge points:
11.3.3.1 monetary indicators including real per capita national income statistics (GDP, GNI, NNI) and purchasing power parity
11.3.3.2 issues of comparison using monetary indicators
Solution:
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