ATTEMPT ALL QUESTIONS ON NATIONAL INCOME  ASSIGNMENT

1. (a)Distinguish between gross national product and gross domestic product (4mks)

(b)Examine the factors that influence the level of national income in an economy (16mks)

2. (a)Differentiate between GNP at factor cost and GDP at market price (4mks)

(b)Account for the low level of NY in your country (16 mks)

3. (a) Distinguish between national income and personal income (4mks)

(b)Explain why South Africa has a higher level of national that of Uganda (16mks)

4. (a) Discuss the factors which limit the level of NY in your country (10mks)

(b) Suggest the steps that should be taken to increase the level of national income in your country (10mks)

5. (a)What are the reasons for compiling national income statistics? (10mks)

(b)Explain the factors that lead to an increase in the level of national income in your country

6. (a) Distinguish between income per capita and disposable income ( 4mks)

(b) Why may income per capita not be a good measure of standard of living in a country over time?

7. (a) Distinguish between GDP per capita and GDP per factor ( 4 mks)

(b) Explain why GDP per capita is  a poor measure of the standard of living  between countries (16 mks)

8. “The income per capita of an average person in Zambia is higher than the income per capita of an average person in Uganda” explain why it is not fair to conclude that the average person in Zambia is better off than an average person in Uganda. (20mks)
9. “The annual growth rate of Uganda’s GDP in the financial year 1998/99 was 10 %. People in Uganda therefore were 10% better-off than they were in 1997/98 financial year” discuss.
10. (a) Distinguish between per capita income and personal income ( 4mks)

(b) What are the limitations of using per capita income figures to compare standard of living between countries? (16 mks)

11. (a) Distinguish between real income per capita and nominal income per capita (4mks)

(b) What are the limitations of using income per capita to compare welfare of people in a country over time? (16 mks)

12. Explain why a rise in national income/ PCY figures does not necessarily imply changes in the economic and social welfare in a country. (20mks)
13. (a) Distinguish between cost of living and standard of living ( 4 mks)

(b) Examine the factors that influence people’s standard of living in an economy (16 mks)

14. (a)Why is it necessary to measure national income? (10mks)

(b) Explain the problems encountered when measuring national income (10 mks)