National income accounting questions | form six Economics

“The size of the national income depends on a nation`s general economic efficiency.” Discuss.

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UNSOLVED

1. Differentiate between Gross National Product (GNP) and Gross Domestic Product(GDP).
2. Calculate:

1. Gross investments
2. Net investment.

Given: At the beginning of the year stocks were valued at T.Shs 22.4 billion and at the end of the year T.Shs 24.7 billion on capital goods depreciation was Tshs 0.800 billion. No new capital goods having been produced.

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UNSOLVED

The table below shows income distribution in a society. You are required to:

1. Plot Lorenz curve
2. Determine

1. The percentage of wealth which is owned by the lowest 50% of the population.
2. The percentage of wealth which is owned by the top 20% of the population.
3. Comment on the shape of the Lorenz curve

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UNSOLVED

Explain how the multiplier and acceleration interacts in determining the increase in national income.

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UNSOLVED

The per capital income of country A is ten times that of country B. Does it mean that people in country A are ten times better off than those in country B? Explain.

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UNSOLVED