Dear Students of IGCSE IX D,
Solve these questions & submit hard copy to me on Monday 9th December 2013

PODAR INTERNATIONAL SCHOOL

GRADE : IX(IGCSE)

SUBJECT: ECONOMICS(0455)                                                       Topic: Economic Growth

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1.                 

Using the above table calculate GNP, NNP, National Income, Personal Income and Disposable income.

Ans:

GNP =                                                                        NNP =

NI =                                                                             PI =

DI =

2.                  Explain and define what NNP is.

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3.                  Define GNP and GDP. Explain the difference between GNP and GDP. Why is the difference between GNP and GDP small for most countries?

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4.                  Explain the difference between GNP and NNP. Explain why NNP is sometimes a better measure of how the economy is doing than GNP is.

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5.                  Explain how using GDP may not be a very good measure of overall social welfare.

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6.                  Assume that GDP is $9 Trillion, receipts of factor income from the rest of the world are $2 Trillion, and payments of factor income to the rest of the world are $1 Trillion. Calculate GNP from this information.

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7.                  Assume that you are given GDP and depreciation data for 1998. Explain why this is not enough information to calculate Net National Product.

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8.                  If NNP is $7 trillion, net investment is $500 billion and gross investment is $1 trillion determine the level of GNP.

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9.                  Write out the equation for calculating national income as derived from NNP.

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10.              If real GDP and nominal GDP both rise by 10% and 15% respectively from one year to the next what can we say is true about production and inflation between these two years and why?

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11.              If nominal GDP is $8 trillion and real GDP is $5 trillion, calculate the value of the GDP deflator.

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12.              How would you adjust GDP to make it a better measure of social welfare?

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13.              Give an example of how real GDP could be increased even though no more output is produced.

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