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