Shown below is the Gross Domestic Product (GDP) of a small economy by category of expenditure: J$ (million) Consumer exp
Posted: Sun Jun 05, 2022 11:47 am
- Shown Below Is The Gross Domestic Product Gdp Of A Small Economy By Category Of Expenditure J Million Consumer Exp 1 (35.56 KiB) Viewed 47 times
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 Gross domestic fixed capital formation 700 New housing 80 Export of goods and services 880 Import of goods and services 1 000 Taxes on expenditure 700 400 Receipt of factor income from rest of the world Subsidies 120 Payment of factor income to the rest of the world 300 Capital consumption 350 A. Define GDP. (2 marks) B. Calculate: i. Net export (2 marks) ii. GDP at market price (3 marks) 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)