Waec Model Questions Vol1 2018 Economics Question 7

Practice essay / theory question 7 from the 2018 Waec Model Questions Vol1 Economics examination. This question covers National Income .

Waec Model Questions Vol1 2018 Economics Essay / Theory
Topic: National Income
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

The following data are for the Nigerian economy for the year 2022.

Question Parts

( a )
Given that Gross Domestic Product (GDP) measured by the expenditure approach is ₦12,000 billion and net factor income from abroad is –₦200 billion, calculate Gross National Product (GNP). Show all working.
( b )
Depreciation (capital consumption allowance) for the year is ₦800 billion. Using your answer from part (a), compute Net National Product (NNP). Show all working.
( c )
Net indirect taxes (indirect taxes minus subsidies) amount to ₦1,500 billion. Using the NNP from part (b), determine Net National Income (NNI). Show your calculation.
( d )
Personal income for the year is ₦9,000 billion and the personal saving rate is 15 %. Calculate total personal saving and comment briefly on its proportion to personal income.
( e )
The government plans to increase its expenditure by ₦500 billion. The marginal propensity to consume (MPC) is 0.8. Using the expenditure multiplier, estimate the change in equilibrium national income and discuss the likely impact on output and employment.

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About This Question

This is Waec Model Questions Vol1 2018 Economics Question 7. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Economics examination.

The question covers National Income .

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