Assignment on ECO 102
Mode of Submission: Online/Email
Date of Submission: 7th of March, 2013, by 11:45pm.
Date Posted: 12TH OF FEBRUARY, 2013
Submission to: sanusi.gbenga@dlc.ui.edu.ng; osisanwo.bukola@dlc.ui.edu.ng &
                       deskofficersocialscience@dlc.ui.edu.ng
Lecturer in Charge: Dr. A. Aminu
Instruction: SECTION A: State TRUE, FALSE or AMBIGUOUS in response to the following questions with a brief (single, but not more than three lines) reason(s) for your choices

Question:  

1. If the GDP>GNP; it follows that the net factor income from abroad is negative.

2.  GDP measures how much a country is producing usually only in a year.

3. Output produced by Nigerian citizens working abroad for a foreign company is not counted in Nigeria’s GDP.

4. Suppose a 25 year old house is sold to Mr. Gbasibe for $5 million and Mr. Gbasibe pays the real estate agent in charge of the sales a commission of one per cent. The contribution of this economic activity to GDP is only $5050000.

5. Nominal GDP is the same thing as GDP at constant prices.

6.  Income earned through illegal activities makes national income to be less.

7. A man who marries his secretary reduces his country’s GNP.

8. Macro stock variables include total bank deposits and investment

9. Constant gyrations or swings in currency exchange rate is one of the goals of macroeconomics

10. The GNP price index is equally refers to as GNP implicit price deflator.

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Question:  2. Given the following national income data for a hypothetical state of 35 million people. Compute (a) GDP (b) GNP (c) NNP (d) National income and (e) Per capita real GNP.

ITEM                       $MILLION

Income from employment                        162.4

Transfer payments                                    11.0

Gross capital formation                      63.2

Subsidies                                            12.4

Indirect business taxes                              14.5

Export of commodity                          15.0

Government final consumption expenditure        58.7

Net factor income from abroad                         -1.3

Private consumption expenditure                      186.1

Personal taxes                                                 38.5

Import of commodity                                      17.2

Consumption of fixed capital                           10.5

2. “An increase in national income is a necessary but not a sufficient condition for a rise in people’s standard of living” Discuss (You are restricted to only a page-answer)