National income accounting questions | form six Economics

Given Consumption=+0.2Y, Investment=Tshs 200

1. Find the equilibrium level of income
2. By how much should the investment spending increase if the government wishes to increase the level of national income by 1000.

The following data show the national income figures , price indices and population for a hypothetical country.

1. Calculate real national income in both years
2. Find real national income per capita in both years
3. Comment on the change in potential welfare.

Complete the following data which relates to a closed economy with no government activity.

1. State accelerator theory
2. Complete a table below;

100. Complete a table below;

Discuss the main determinants of the size of national income.

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 

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

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

2. Given a table below:

Find the value of GNP

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.

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.