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Though important in measuring welfare, national income statistics should be used with caution. Explain. (10 marks) Page 2 of 2 Q3. The data below relates

"Though important in measuring welfare, national income statistics should be used with caution." Explain. (10 marks) Page 2 of 2 Q3. The data below relates to economic performance of Examland economy for the year 2017. Item Amount in billions of Shs. Government Purchase 4,200 Corporate profits 1,500 Consumptions of fixed capital 800 Gross private domestic investment 1,500 Personal taxes 700 Personal savings 500 Imports 1,000 Net interests 400 Rental income 1,200 Exports 900 Personal consumption expenditure 4,000 Dividends 300 Indirect business taxes 600 Contributions to social security 560 Transfer payments to Households 1,300 Required: (i) Calculate GNP using expenditure approach (ii) Determine National Income (NI) (iii) Calculate Disposable personal income (DPI)

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