provide answers with brief simple notes

(a) Given that Gross National Product at Current Market Prices is 200m, price subsidies

5m, depreciation 12m and indirect taxes 30m.

Calculate the value of each of the following: Show all your workings.

(i) Gross National Product at Factor Cost;

(ii) Net National Product at Factor Cost/National Income.

(b) Explain the economic effect which each of the following could have on the level of GNP at

Market Prices:

(i) a reduction in the general level of VAT;

(ii) a reduction in the subsidies paid to farmers.

(c) (i) Outline the main uses of National Income Statistics.

(ii) State and explain four reasons why care should be taken when using National Income

Statistics as a measure of economic performance of a country.

6. (a) It has been suggested that the main commercial (retail) banks in Ireland should be

nationalised.

(i) Explain the underlined terms.

(ii) Outline two possible economic arguments for and two possible economic arguments

against the nationalisation of the banks.

(b) (i) State and explain what you consider to be the three most important economic aims of

the Irish Government.

(ii) Outline two examples of possible conflicts between government economic

aims/objectives.

(c) The economist Milton Friedman was regarded as one of the major thinkers of the

monetarist school of economic thought.