11:50' ll "9: - ' MECON202{Assignment One}.docx v Done Compensation of employees 1300.0 Income earned from the rest of the world 60.0 Income earned by the rest of the world 106.0 Proprietors' income 430.0 Rental income 2450 Net interest 74.0 a. Calculate Gross Domestic Product at market price and at factor cost {5 marks} bi Net National Income in the economy at market price and at factor cost {5 marks} c. National Income {5 marks} d. Personal Income {5 marks} e. Explain the difference between Real and Nominal GDP. {5 marks} Question Three i. Draw the circular ow diagram {12 marks} ii. List all the injections and withdrawals {6 marks} iii. Explain how withdrawals and injections may impact an economy. {7 marks} 11:49L u '5' C) MECON202{Assignment One}.docx v Done 60.0 11 Due date: On or before March 6, 2023 INSTRUCTIONS: ANSWER ALL THE QUESTIONS {40 MARKS} KINDLY NOTE, THE ASSIGNMENT IS TO GIVEN TO YOUR CLASS LEADER, WHO WILL THEN SUBMIT THEM. NO ASSIGNMENT WILL BE COLLECTED AFTER THE DATE SPECIFIED. ONLY SOFT COPY OF THIS ASSIGNMENT IS REQUIRED. Question One With aid of diagram describe how each of the following will affect the demand for personal computers: (a) a rise in incomes (assuming computers are a normal good); (b) a lower expected price for computers; (c) cheaper software; (d) computers become simpler to operate. {10 Marks} The 'Law of Demand' states that as the price of a good rises the quantity demanded of the good falls and as the price of the good falls the quantity demanded of the good rises: ceteris paribus. In other words 'Law of demand' states that the price of a good and quantity... Question Two The following questions relate to the information in the table below. Billions of dollars Consumption $13 49 .5 Investment 805.3 Government purchases 626.9 Net exports (189.1) Capital consumption allowance 203.6 Indirect business taxes 213.3 Statistical discrepancy 54.4 Social Security insurance taxes 206.5 Transfer payments 355.3 Undistributed prots 432.0 Corporate prots taxes 77.7 Personal taxes 340.0 Dividends 564.0 Compensation of employees 1300.0 Income earned from the rest of the world Income earned by the rest of the world 106.0 Proprietors' income 430.0 Rental income 2450 \\v.-. 4 Han