Effect of National Income on a Nigerian Citizen Standard of Living

Continues for 5 more pages »
Read full document

Effect of National Income on a Nigerian Citizen Standard of Living

By | March 2013
Page 1 of 6
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...

Rate this document

What do you think about the quality of this document?

Share this document

Let your classmates know about this document and more at Studymode.com