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The following data relates to the market value of economic transactions for the three main sectors of your country’s economy. SECTOR VALUE OF OUTPUT PURCHASES FROM OTHER FIRMS Agriculture 300 160 Manufacturing 200 150 Services 150 120 Required: (i) Compute the gross domestic product (GDP) and explain the method used and why. (2 Marks) (ii) Given that: depreciation = 90, indirect taxes = 70, subsidies = 30, payments to factors of production from abroad = 20, payments to foreign factors = 40. Compute: 1) Gross national product (GNP) at market prices. (1 Mark) 2) Net national product (NNP) at market prices. (1 Mark) 3) Net national product (NNP) at factor cost. (1 Mark) 4) Net domestic product (NDP) at factor cost (1 Mark)
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