National income accounting questions | form six Economics

The capita income in country A is shs.800,000 while the per capita income in country B is shs.1,000,000. However, the standard of living in country A is higher than that in country B. Explain the factors which may be in play in two countries.

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UNSOLVED

Write short notes on the following National income concepts.

1. Nominal GNP and real GNP
2. Non-monetary output
3. Transfer earnings
4. Accelerator principle
5. Foreign Trade Multiplier

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UNSOLVED

1. What is meant by national income at factor cost?
2. You are given the following information of a particular country in a certain year.

GNP at market price is Tshs.3960 millions.

GDP at market price is Tshs.4020 millions

NNP at market price is Tshs.3766 millions

Find the:

1. net factor income from abroad and comment on it
2. net domestic product at market price
3. depreciation value.

100. Which factors differentiate gross domestic product from gross national product of a country?

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UNSOLVED

1. What are leakages and injections? What does the equality between injections and withdraws implies?
2. Given marginal propensity to save equal to 0.5, find a multiplier.

Answer / Solution

UNSOLVED

1. What are leakages and injections? What does the equality between injections and withdraws implies?
2. Given marginal propensity to save equal to 0.5, find a multiplier.

Answer / Solution

UNSOLVED