Given the following data in millions of shillings pertaining to an economy, determine Net National and Gross National Product Values. National income: 3,387 Indirect...

      

Given the following data in millions of shillings pertaining to an economy, determine Net National and
Gross National Product Values.

National income: 3,387
Indirect business taxes (less subsidies): 366
Depreciation: 455

  

Answers


Wilfred
(i) NNP - indirect taxes + subsidies = NI; NNP = NI + Indirect Taxes - Subsidies, Since (indirect taxes - subsidies) is positive (in this case) i.e. 336, implying that indirect taxes exceed subsidies.

NNP - 336 = 3,387
NNP = (3,387 + 336)
NNP = 3,723

(ii) GNP – Dep = NNP
GNP = NNP + Dep
GNP = (3,723 + 445)
GNP = 4,178.

sub37220191115.png


Wilfykil answered the question on February 7, 2019 at 07:16


Next:  Discuss the ways in which the traditional role of an auditor has been affected by recent demands by regulatory authorities and shareholders.
Previous: Explain the preliminaries incidental to promotion of a company.

View More CPA Economics Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions