Gce Model Questions Vol1 2019 Economics Question 7

Practice essay / theory question 7 from the 2019 Gce Model Questions Vol1 Economics examination. This question covers National Income .

Gce Model Questions Vol1 2019 Economics Essay / Theory
Topic: National Income
Question 7 GCE_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • essay

The following data relate to the economic activity of Country X for the year 2022 (all values in ₦ billions).\n\n• Consumption (C) = 500\n• Investment (I) = 200\n• Government expenditure (G) = 150\n• Exports (X) = 120\n• Imports (M) = 80\n• Indirect taxes (T) = 60\n• Subsidies (S) = 10\n• Depreciation (D) = 50\n• Net factor income from abroad (NFIA) = 30\n• Transfer payments (TR) = 40\n• Personal taxes (PT) = 70\n\nUsing the above information, answer the following:

Question Parts

( a )
Calculate Gross Domestic Product (GDP) at market price.
( b )
Using the data, compute the following aggregates:
( c )
Assume that indirect taxes increase by 5 % while all other components remain unchanged. Explain how this change would affect (i) National Net Income and (ii) Disposable Income, and comment on the likely impact on consumption.

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About This Question

This is Gce Model Questions Vol1 2019 Economics Question 7. It is one of the essay questions from the 2019 Gce Model Questions Vol1 Economics examination.

The question covers National Income .

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