Revision Question

Tutorial Part 1 1. (a) (b) Define macroeconomics concept. Discuss TWO (2) macroeconomics goals.

The following table shows the national income data for an economy in year 2009 ITEM RM (million) Exports 1000 Personal consumption expenditure 700 Changes in stock -500 Indirect business tax 450 Government expenditure 3000 Investment 2500 Personal income tax 740 Subsidies 300 Imports 2500 Factors income paid abroad 600 Depreciation 255 Factors income received from abroad 570

Based on the above data, calculate: i. ii. iii. iv. v. 2. (a) GDPmp GDPfc GNPmp GNPfc National income

Briefly explain TWO (2) government policy that can be used to achieve the macroeconomics goals. Differentiate FOUR (4) characteristic between macroeconomics and microeconomics. State THREE (3) components of gross domestic product (GDP) using the income approach.

(b) (c)

3.

(a)

The table shows the national income data for a country XYZ ITEM RM (million) Wholesale and retail 12500 Mining and gas 8540 Construction 25350 Manufacturing 13770 Agriculture and forestry 6045 Banking and insurance 46530 Factor payment from abroad 7860 Other services 4320 Taxes and expenditure 985 Factors payment to abroad 8760 Capital consumption 4500

Calculate: i. ii. iii. iv. 4. (a) (b) Gross domestic product at factor cost (GDPfc). Gross national product at market price (GNPmp). Gross national product at factor cost (GNPfc). National income.

Define national income concept. Discuss TWO (2) uses of national income.

The following table shows the national income data for an economy in year 2010 ITEM RM (million) Wholesale and retail 11750 Mining and gas 7250 Construction 22125 Manufacturing 15755 Agriculture and forestry 11500 Banking and insurance 15500 Factor payment from abroad 6280 Other services 3250 Taxes and expenditure 655 Factors payment to abroad 7820 Capital consumption 375

Based on the above data, calculate : i. ii. iii. iv. GDPmp GDPfc GNPmp GNPfc

v. 5. (a)

National income

Differentiate FOUR (4) characteristic between macroeconomics and microeconomics. Illustrate components of macroeconomics.

(b)

6.

(a)

The table shows the national income data for a country Y with a population 100 million people. ITEM RM (million) Wages 3000 Public investment 2500 Corporate investment 7500 Net income from abroad -5500 Government expenditure 4500 Net export -1800 Depreciation 2000 Subsidies 500 Taxes on expenditure 350 Private consumption 6600

Calculate : i. ii. iii. iv. v. (b) Gross domestic product at market price. Gross national product at market price. Gross national product at factor cost. National income. National income per capita.

State FIVE (5) difficulties in calculating national income.

END