10:02 AM Fri 3 Jun moodle-win.azurewebsites.net SECTION B Instruction: Complete ALL questions. Question 1 Shown below is

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10 02 Am Fri 3 Jun Moodle Win Azurewebsites Net Section B Instruction Complete All Questions Question 1 Shown Below Is 1 (88.26 KiB) Viewed 42 times

10:02 AM Fri 3 Jun moodle-win.azurewebsites.net SECTION B Instruction: Complete ALL questions. Question 1 Shown below is the Gross Domestic Product (GDP) of a small economy by category of expenditure: JS (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 120 300 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) 22/05 The Council of Community Colleges of Jamaica Page 2 ECON3701 Question 2 78%