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Understand how national income can affect the economy

Discuss the view that a large increase in national income is often but not always desirable. [15]

Question Requirements

What you need to know to attempt this essay question?

First, explain the meaning of large increase in national income, which is economic growth. Second, explain benefits of large increase in national income on an economy as a whole and the non-economic areas. Lastly, explain the disadvantages of large increase in national income on the economy and on the non-economic areas.

Economic growth can bring about both desirable and undesirable outcomes to an economy. Economic growth brings about increase in income, where governments can use to implement social policies for the people. However, in times of economic growth, not all classes of society can enjoy the benefits of income growth


  • National Income Determination
  • Economic Growth

Knowledge Application

How to apply the knowledge to your exam preparation?

From the video, prepare an essay outline on how to tackle the question. Thereafter, aim to complete the essay within 45 mins, so as to improve your writing and thinking skills.

Simon Ng

Founder, JC Economics & General Paper Tutor at Economics Focus
JC Economics Tutor Simon Ng of Economics Focus has been teaching A Level Economics and A Level General Paper since 2003. Simon set up Economics Focus to assist students in their pursuit of academic excellence at the examination by providing economics tuition for H1 and H2 students. JC1 and JC2 students are inspired by Simon's clear teaching methods that enabled them to comprehend economics terms and concepts. Simon developed the Rational Thinking methodology to aid students to excel in their JC economics essays and CSQs.