Explain the following National Income concepts:
(a) Gross Domestic Product (GDP; (4 marks)
(b) Gross National Product (GNP; (4 marks)
(c) Cost of living; (4 marks)
(d) Per Capital income; (4 marks)
(e) Standard of living; (4 marks)
The total fixed cost (TFC) and total cost (TC) functions of a hypothetical firm are shown in the graph below. Study it and answer the questions that follow:
(a) Determine the firm's
(i) variable cost at output levels 2, 4 and 6
(ii) average total cost at output levels 2 and 3
(iii) marginal cost at output levels 4 and 6
(b) If the price of the firm's product is $40, calculate the firm's profit or loss when the following units are sold:
(i) 2 units; (ii) 4 units
The table below shows the incomes and rates of income tax levied on four professionals in an economy.
| Profession | Income per month($) | Tax rate % | Disposable income ($) |
| Doctor | 8,000 | 10 | |
| Engineer | 7,000 | 12 | |
| Civil servant | 5,000 | 18 | |
| Nurse | 6,000 | 15 |
Use the above data to answer the questions that follows:
(a) Calculate the disposable incomes of the four individuals
(b) What system of taxtation was employed?
(c) Give reasons for your answer in 2(b)
(d) With the aid of a diagram, explain the system of taxation employed in 2(b)
(a) What is a trade union?
(b) Describe any four functions of trade unions.
(c) Outline any two weapons used by trade unions to achieve their objectives.
(a) Outline any four objectives of a price control policy.
(b) Highlight any four effects of a maximum price control policy.
