National income accounting questions | form six Economics

a. Differentiate between:

i. Gross national product and Gross domestic product.

ii. Nominal national income and real national income.

b. Write short notes on the following concepts: 

i. Net factor income

ii. Net national product

iii. Net national product at factor cost

iv. Marginal propensity to import

v. Quid-pro-quo

vi. Value added

vii. Double counting

viii. Non marketed output

ix. Per capita income 

Answer / Solution

UNSOLVED

Data below represents values of economic transactions for a hypothetical economy figures in terms of millions of shillings.

Wages and salaries=50

Income from rent=4

Net interest=6

Profits of corporations=8

Indirect taxes=7

Subsidises=3

Depreciation=8

Net income from abroad=-4

From the above data , derive the following

i. Gross domestic product at market price

ii. Net domestic product

iii. Net domestic product at factor cost

iv. Gross national product

v. National income

Answer / Solution

UNSOLVED

1. Given a table below of a hypothetical economy with only one commodity.

2. Given a table below:

Find the value of GNP

Answer / Solution

UNSOLVED

Given a table below of a hypothetical economy, the values are in millions Tshs;

1. Fill in the blanks
2. Show the equilibrium level of income.

Answer / Solution

UNSOLVED

Given a table below:

1. Express a consumption function which describes the data above
2. If the level of saving in the economy is Tshs 25 millions at equilibrium use a consumption function obtained in (i) above to find equilibrium level of income.

Answer / Solution

UNSOLVED