Question
1.a) A newly industrialized country with a population of 40 million people, had its national income estimates during the year 2009 as follows: Value in
1.a) A newly industrialized country with a population of 40 million people, had its national
income estimates during the year 2009 as follows:
Value in Kshs (million)
Exports250000
Consumption expenditure624000
Investment300000
Government spending416000
Imports210000
Depreciation10000
Net indirect taxes50000
Required:
a) (i) Calculate the GNP per capital of the country
ii) Outline limitations of using GNP pr capita in measuring the standard of living of accounts
b)Discuss five problems that are encountered in measuring National income in your country.
2. State four factors that affect the circular flow of income in an economy
3.Identify four factors that may be contributing to income disparity between the rich and poor
citizens in THE WORLD.
4. Account for the difference between the gross National Income AMONG COUNTRIES
5. Name three approaches for measuring national income
6. Highlight four problems associated with income approach
7. Highlight four problems associated with the output approach in computation of National income
8. Highlight four uses of National Income statistics in any given country
9. Outline four circumstances under which per capita income would be a good indicator
1O. Outline four reasons why an increase in per capita income may not necessarily lead to a rise
in thestandard of living ofthecitizens
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started