Question 1

Table 1
Item RM (million)

Household consumption 350

Government expenditure 200

Investment 150

Depreciation 25

Factor income paid to abroad 55

Factor income received from abroad 65

Exports 90

Imports 60

Subsidies 10

Indirect business tax 15

a. Table 1 shows the National Income for Country X for 2018. Calculate the
followings:
i. Gross Domestic Product (GDP) market price. (3 marks)
ii. Gross National Product (GNP). (2 marks)
iii. Net Investments. (2 marks)
iv. .Gross Domestic Product (GDP) factor cost. (2 marks)
Table 2: Total Production for Country Y in 2010 and 2016
2010 2016
Item
Price Quantity Price Quantity

Milk 5.00 400 6.00 450

Shirts 20.00 350 18.00 500

b. Table 2 shows the Total Production for Country Y in 2010 and 2016. Calculate
the followings:
Table 2 shows the national income data for an economy in year 2010.

i. Nominal Gross Domestic Product (GDP) for 2016. (3 marks)

ii. Real Gross Domestic Product (GDP) for 2016. (3 marks)
Question 2

Table 2: National Income

Items RM (million)

Wholesale 11,750

Mining and gas 7,250

Construction 22,125

Manufacturing 15,755

Agriculture and Forestry 11,500

Banking and Insurance 15,500

Factor payment from abroad 6,280

Other services 3,250

Taxes 655

Factor payment to abroad 7,820

Capital consumption 375

a. Calculate:
i. Gross Domestic Product at market price. (4 marks)
ii. Gross Domestic Product at factor cost. (1.5 marks)
iii. Gross National Product at market price. (2 marks)
iv. Net National Product at market price. (1.5 marks)
v. National Income. (2.5 marks)
b. Briefly any two main uses of National Income. (4 marks)
ANSWER

Question 1
a.
i. Y= C + I + G + (X - M)
Y= 350+60+200+(90-60)
=700+30
=RM 730 (Million)

ii. 730+65-55= RM740(million)

iii. 200-25= RM175(million)
iv. GNP(MP) – indirect tax + subsidy
730-(15+10)
=725

b.
i. milk= 6.00 x 450 =2700
shirt = 18.00 x 500= 9000
2700+9000= 11700
= 11700

ii. (450x5) + (500x20)= 12250

Question 2
a.

i. Y= C + I + G + (X - M)
Y=11500+7250+22125+11750+15500+3250+15755= 87130
=RM87130(million)
ii. GDP (FC) = GDP (MP) – Indirect tax + subsidies
87130-655= RM86475(million)
iii. GNP (MP)= GDP (MP) + Net Factor Income Abroad
= 87130+(6280-7820)
= 87130+(-15410)
= 85590

iv. NNPMP= 88015-375

=85215
v. NNP (MP) + subsidies – indirect tax
=85215-655
=84560

b.
1)To measure standard of living and improve to a better economy.
2) To assist in national planning a more stable economy.