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A newly industrialized country with a population of 40 million people, had its national income estimates during the year 2009 as follows:
Value in Kshs (million)
Exports 250000
Consumption expenditure 624000
Investment 300000
Government spending 416000
Imports 210000
Depreciation 10000
Net indirect taxes 50000
Required:
a) (i) Calculate the GNP per capital of the country
ii) Discuss the limitations of using GNP per capita in measuring the standard of living of accounts
b) Outline five problems that are encountered in measuring National income in your country.
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