6. (a) The main components of National Income are: Consumption, Investment, Government Expenditure, Exports, Imports. (i) Show the equation which links all of these components with the level of National Income in the economy. (ii) Explain what determines/influences the size of each of these components of National Income. (b) The table below shows the level of National Income, Consumption, Investment, Exports and Imports at the end of Year 1 and Year 2. (For the purpose of this question you may ignore the government sector.) Year National Income Consumption Investment Exports Imports E10,000 E8,600 61,000 E1,200 6800 2 (1 1,200 69,500 E1,300 E1,100 Calculate the following, showing all your workings: (i) The level of Exports in Year 2; (ii) The Marginal Propensity to Import; (iii) The Marginal Propensity to Save; (iv) The size of the Multiplier. Explain the economic meaning of this multiplier figure. (e) Less developed countries (LDCs) are primarily concerned with achieving economic development while developed countries are concerned with achieving economic growth (i) Distinguish between the two underlined terms. (Hi) Outline THREE characteristics which indicate that a country is a LDC.4. (a) Free Enterprise (Laissez Faire) and a Command Economy (Central Planning) are examples of economic systems. (i) Explain each of the underlined terms. (ii) In relation to any ONE of the economic systems above, outline TWO possible economic advantages and TWO possible economic disadvantages. (b) (i) 'The Irish Economy can be described as a Mixed Economy'. Outline FOUR examples of economic activity in the Irish economy to support this view. (ii) Do you consider that the Irish economy is moving towards more free enterprise or towards more central planning in recent years? Explain your answer, using appropriate examples. (c) In the case of any TWO of the following economists, outline TWO contributions which each one has made to the development of economic ideas: Adam Smith; Alfred Marshall; John Maynard Keynes; Milton Friedman. 5. (a) Explain the following economic terms, using appropriate examples in each case: (i) Government Current Budget; (ii) Government Capital Budget; (iii) Revenue Buoyancy: (iv) Regressive Taxation. (b) State and explain how a government budget could be affected by each of the following developments: ) a rise in interest rates in the economy; (ii) a fall in the rate of stamp duty on property purchased; (iii) the introduction of subsidised child care for all families within the state. (c) You are appointed Economic Advisor to the Minister for Finance. Outline the economic arguments you would identify for the Minister in favour of lowering Irish income taxation rates