Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 219 views

    National Income Numerical Q

    Uploaded by

    Gongju Esya
    The document provides national income data for a country in 1998 including items like personal consumption, government expenditure, exports, imports, and subsidies. It asks the reader to: [1] Define GDP. [2] Calculate GDP, GNP, and NNP values. [3] Determine the national income at factor cost from NNP and provide two reasons. The expected response is: [1] GDP is the total value of final goods and services produced annually. [2] GDP=$1,013 billion, GNP=$1,093 billion, NNP=$978 billion. [3] National income at factor cost is $704 billion because it is derived from NNP minus indirect taxes plus subsidies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    National Income Numerical Q

    Uploaded by

    Gongju Esya
    219 views2 pages
    The document provides national income data for a country in 1998 including items like personal consumption, government expenditure, exports, imports, and subsidies. It asks the reader to: [1] Define GDP. [2] Calculate GDP, GNP, and NNP values. [3] Determine the national income at factor cost from NNP and provide two reasons. The expected response is: [1] GDP is the total value of final goods and services produced annually. [2] GDP=$1,013 billion, GNP=$1,093 billion, NNP=$978 billion. [3] National income at factor cost is $704 billion because it is derived from NNP minus indirect taxes plus subsidies.

    Original Description:

    NATIONAL INCOME ACCOUNTING

    Original Title

    National Income Numerical q

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides national income data for a country in 1998 including items like personal consumption, government expenditure, exports, imports, and subsidies. It asks the reader to: [1] Define GDP. [2] Calculate GDP, GNP, and NNP values. [3] Determine the national income at factor cost from NNP and provide two reasons. The expected response is: [1] GDP is the total value of final goods and services produced annually. [2] GDP=$1,013 billion, GNP=$1,093 billion, NNP=$978 billion. [3] National income at factor cost is $704 billion because it is derived from NNP minus indirect taxes plus subsidies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    219 views2 pages

    National Income Numerical Q

    Uploaded by

    Gongju Esya
    The document provides national income data for a country in 1998 including items like personal consumption, government expenditure, exports, imports, and subsidies. It asks the reader to: [1] Define GDP. [2] Calculate GDP, GNP, and NNP values. [3] Determine the national income at factor cost from NNP and provide two reasons. The expected response is: [1] GDP is the total value of final goods and services produced annually. [2] GDP=$1,013 billion, GNP=$1,093 billion, NNP=$978 billion. [3] National income at factor cost is $704 billion because it is derived from NNP minus indirect taxes plus subsidies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The table below shows the national income of a country in 1998.

    Use the data to answer the questions that follow:

    ITEMS $ MILLIONS

    Personal consumption expenditure 640.00


    Gross Private Domestic Investment 180.00
    Government expenditure 220.00
    Exports of goods and services 175.00
    Imports of goods and services 202.00
    Subsidies 48.00
    Indirect business taxes 322.00
    Consumption of fixed capital 115.00
    Net property income from abroad 80.00

    1. Define Gross Domestic Product (GDP)

    1. Calculate the:

    2. Gross Domestic Product (GDP)

    3. Gross National Product (GNP)

    4. Net National Product (NNP)

    1. (i) Determine the National Income at factor cost from the

    Net National Product (NNP).


    (ii) Give two reasons for your answer.

    Most of the candidates were not attracted to this question. The question required that candidates carry out
    simple calculations involving some estimates in national income accounting. A good number of the candidates
    who attempted this question fell short of expectation. This fact affected their scores negatively. Candidates
    were expected to answer thus:

    (a) Gross domestic product (GDP) is the total market value of all final goods
    and services produced annually in the country.

    (b) (i) GDP = C + I + G + X - M


    GDP = 640 + 180 + 220 + 175 202
    = $1,013.00 million

    (ii) GNP = GDP + Net property income from abroad


    = 1,013.00 + 80.00
    = $1,093.00

    (iii) NNP = GNP Consumption of fixed capital


    = 1,093.00 115.00
    = $978.00

    (c) (i) National Income at factor cost =


    = NNP at market price Indirect taxes + subsidies
    = 978 322 + 48
    = $704.
    Billion of dollars ($)
    Net investment 110
    Depreciation 30
    Export 50
    Import 30
    Government purchases 150
    Consumption 400
    Production taxes (net of subsidies) 35
    Income earned but not received 60
    Income received but not earned 70
    Personal income taxes 50
    Employee compensation 455
    Corporate profit 60
    Rental income 20
    Net interest 30
    Proprietors income 40
    Net earnings of U.S resources abroad 40
    Statistical discrepancy 10
    a) Calculate GDP using income and expenditure approach

    GDP income approach = 700

    GDP expenditure approach = 710

    b) Gross Investment

    Gross = Net + dep =140

    c) Calculate GNP, NNP, NI, PI and PDI

    GNP = GDP + NET EARNING = 750

    NNP = GNP DEP = 720

    NI = NNP PRODUCTION TAXES = 685

    PI = NI + INCOME RECEIVED INCOME EARNED = 695

    PDI = PI PERSONAL INCOME TAX = 645

    You might also like