National income accounting questions | form six Economics

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

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.

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

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

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.

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.

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

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?

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.

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.