Reference no: EM132809434

1. Explain five uses of national income statistics to an economy

2. The gap between the rich and the poor is so wide In Kenya. Highlight five factors that contribute to this disparity in income distribution.

3. Explain five limitations of using per capita income as a measure of the standard of living in a country

4. Outline five problems that are encountered in measuring National income in your country

5. (a) Explain five limitations of using per capita income to compare living standards of people in different Countries

(b) High national income may not necessarily mean better welfare for the citizens of that country. Explain five reasons to support this argument

7. a) 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) Outline limitations of using GNP pr capita in measuring the standard of living of accounts

b) Discuss five problems that are encountered in measuring National income in your country.