Neco 2019 Economics Question 7

Practice essay / theory question 7 from the 2019 Neco Economics examination. This question covers National Income, GDP, GNI, NNP .

Neco 2019 Economics Essay / Theory
Topics: National Income GDP GNI NNP
Question 7 NECO • 2019 • ECONOMICS • essay

The table below shows selected macro‑economic data for Country X for the year 2022 (all values are in ₦ billions).\n\n| Component | Value |\n|------------------------------|-------|\n| Consumption (C) | 4,500 |\n| Investment (I) | 1,200 |\n| Government expenditure (G) | 800 |\n| Exports (X) | 600 |\n| Imports (M) | 500 |\n| Net factor income from abroad (NFIA) | -30 |\n| Depreciation (D) | 400 |\n\nUsing the above information, answer the following questions.

Question Parts

( a )
Calculate the Gross Domestic Product (GDP) at market prices using the expenditure approach.
( b )
Using the data, compute the following:
( ) Net National Product (NNP) at factor cost.
( ) Gross National Income (GNI) at market prices.
( c )
Explain two ways in which a rise in imports could affect the national income of Country X, referring to the components of the expenditure approach.
( d )
The government plans to increase investment by ₦200 billion financed by borrowing. Discuss qualitatively how this policy would likely affect the equilibrium level of national income in the short run, using the multiplier concept.

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About This Question

This is Neco 2019 Economics Question 7. It is one of the essay questions from the 2019 Neco Economics examination.

The question covers National Income, GDP, GNI, NNP .

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