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Effect of National Income on a Nigerian Citizen Standard of Living

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Effect of National Income on a Nigerian Citizen Standard of Living

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  • March 2013
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NAME: OLUBOYE OLUMIDE OLUWAFEMI

DEPARTMENT: ECONOMICS

LEVEL: 100L

MATRIC NO: E029173

COURSE: ECO 102

Lecturer in Charge: Dr. A. Aminu

CONTINOUS ASSESMENT 1

SECTION A:

Question: 1. If the GDP>GNP; it follows that the net factor income from abroad is negative.

ANSWER: TRUE

Question 2: GDP measures how much a country is producing usually only in a year.

ANSWER: TRUE

QUESTION 3: Output produced by Nigerian citizens working abroad for a foreign company is not counted in Nigeria’s GDP.

ANSWER: TRUE

QUESTION 4: Suppose a 25 year old house is sold to Mr. Gbasibe for $5 million and Mr. Gbasibe pays the real estate agent in charge of the sales a commission of one per cent. The contribution of this economic activity to GDP is only $5,050,000.

ANSWER: FALSE

QUESTION 5: Nominal GDP is the same thing as GDP at constant prices

ANSWER: FALSE

QUESTION 6: Income earned through illegal activities makes national income to be less.

ANSWER: TRUE

QUESTION 7: A man who marries his secretary reduces his country’s GNP.

ANSWER: AMBIGUOUS

QUESTION 8: Macro stock variables include total bank deposits and investment .

ANSWER: TRUE

QUESTION 9: Constant gyrations or swings in currency exchange rate is one of the goals of macroeconomics

ANSWER: FALSE

QUESTION 10: The GNP price index is equally refers to as GNP implicit price deflator

ANSWER: TRUE

SECTION B:

1. Given the following national income data for a hypothetical state of 35 million people. Compute (a) GDP (b) GNP (c) NNP (d) National income and (e) Per capita real GNP.

ITEM $MILLION

Income from employment 162.4

Transfer payments 11.0

Gross capital formation 63.2

Subsidies 12.4

Indirect business taxes...