Instruction: Complete ALL questions. Question 1 Shown below is the Gross Domestic Product (GDP) of a small economy by ca

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Instruction Complete All Questions Question 1 Shown Below Is The Gross Domestic Product Gdp Of A Small Economy By Ca 1 (43.63 KiB) Viewed 54 times

Instruction: Complete ALL questions. Question 1 Shown below is the Gross Domestic Product (GDP) of a small economy by category of expenditure: J$ (million) Consumer expenditure 2 800 Government final consumption 750 700 Gross domestic fixed capital formation New housing 80 Export of goods and services 880 Import of goods and services 1000 Taxes on expenditure 700 400 Receipt of factor income from rest of the world Subsidies 120 300 Payment of factor income to the rest of the world Capital consumption 350 A. Define GDP. (2 marks) B. Calculate: i. Net export (2 marks) (3 marks) ii. GDP at market price iii. GDP at factor cost (3 marks) C. Provide an explanation for TWO (2) of the elements used to calculate GDP using the expenditure method. (4 marks) D. Describe TWO (2) limitations and ONE (1) use of national income. (6 marks) (Total 20 marks)