Warning: Undefined array key 1 in /home/acaproso/public_html/._System/._Template/.Main.php on line 116
National income accounting questions

National income accounting questions | form six Economics

Find National income accounting examination questions, form six Economics in acaproso.com

# Question
1

Explain why income per capita is not a good measure of differences in standard of living among countries?


Long answers
2

Given the following data in Tshs. Gross National Product at factor cost 15million. Income from abroad, 3million. Gross domestic product at factor cost, 9million.Net indirect tax, 2million. Indirect tax, 3million. Depreciation , 2million. Direct tax, 4million. Find

  1. Net factor income from abroad
  2. Subsidies
  3. Net national product at factor cost
  4. National income
  5. Gross national product at market price
  6. National disposable income

Mathematical Calculation
3

How multiplier and accelerator can both lead to unemployment?


Long answers
4
  1. Define the following concepts
  1. Gross investment
  2. Net investment
  1. If total purchase of productive assets of a certain firm at the end of a financial year was valued at Tshs 20 million and depreciation was estimated at Tshs 1.5million , find:
  1. Net investment
  2. Gross investment
  1. What are the determinants of investments?

Long answers
5

Discuss the problems of computing/ compiling national income.


Long answers
6
  1. Define
  1. Average propensity to save
  2. Marginal propensity to save
  1. Fill in blanks given a table below:
Saving(Tshs) Income(Tshs) Consumption(Tshs) APC MPC MPS
-1000 5000 - - - -
-500 10000 - - - -
0 15000 - - - -
500 20000 - - - -
1000 25000 - - - -
1500 30000 - - - -
  1. Calculate the investment multiplier given that MPS is 0.5
  1. Average propensity to save
  2. Marginal propensity to save

Mathematical Calculation
7

Explain why multiplier is less effective in less developed countries like Tanzania?


Long answers
8

Identify and discuss forms and causes of income inequalities.


Long answers
9

Explain the concepts of inflationary gap, deflationary gap and equilibrium level of income. What policies can be applied to close inflationary and deflationary gaps?


Long answers
10

The following data refers to a hypothetical closed economy where money prices and wage rates and the rate of interest are constant

  1. Consumption spending is C=0.8Y
  2. Investment spending is I=Tshs 600million
  3. Government spending is G=Tshs 2400
  4. Income tax is T=0.2Y
  1. Calculate the equilibrium level of income
  2. Calculate the amount of budget deficit

Mathematical Calculation