Neco 2017 Economics Question 7

Practice essay / theory question 7 from the 2017 Neco Economics examination. This question covers National Income .

Neco 2017 Economics Essay / Theory

Topic: National Income

Question 7 NECO • 2017 • ECONOMICS • essay

The Central Statistical Office released the following macro‑economic data for Country X for the year 2022 (all values in billions of naira): - Consumption (C) = 1,200 - Investment (I) = 350 - Government expenditure (G) = 500 - Exports (X) = 250 - Imports (M) = 300 - Indirect taxes (T) = 180 - Subsidies (S) = 40 - Depreciation (D) = 150 - Net factor income from abroad (NFIA) = ? It is known that the Net factor income from abroad (NFIA) equals the difference between the total factor income earned by residents abroad and the factor income earned by non‑residents in the country, and that the total factor income earned by residents abroad is 120 billion naira while the factor income earned by non‑residents domestically is 80 billion naira. Using the above information, answer the following:

( a )

Calculate the Gross Domestic Product (GDP) of Country X using the expenditure approach.

( b )

Determine the Net factor income from abroad (NFIA) and then compute the Gross National Product (GNP).

( c )

Using the income approach, compute the National Income (NI) of Country X.

( d )

Briefly discuss why the difference between GNP and NI matters for economic policy makers.

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This is Neco 2017 Economics Question 7. It is one of the essay questions from the 2017 Neco Economics examination.

The question covers National Income .

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