Answered

\begin{tabular}{|l|r|}
\hline
GDP at market prices & R225bn \\
\hline
Net primary income to the rest of the world & R15bn \\
\hline
Indirect taxes & R35bn \\
\hline
Subsidies & R3bn \\
\hline
Consumption of fixed capital & R30bn \\
\hline
\end{tabular}

Q.5.1.1 Calculate the value of the gross national product (GNP).
(2)

Q.5.1.2 Calculate the value of GDP at factor cost.
(2)

Q.5.2 In the table given for question 5.1, the GDP at market prices is given. It shows the measurement of the GDP according to the expenditure method. List the two other methods that are used to calculate the GDP.
(2)

Q.5.3 Match-the-columns question: Column A lists a macroeconomic objective. Choose the most appropriate measure of assessing the macroeconomic objective from the list in column B. Write only the question number and, next to it, the letter of the correct answer. For example: Q.5.3.1 (f).



Answer :

GinnyAnswer
Certainly! Let's tackle each part of the question step-by-step:

### Q.5.1.1 Calculate the value of the gross national product (GNP).
Gross National Product (GNP) is calculated by adding the Net primary income from the rest of the world to the GDP at market prices.

1. GDP at market prices: R225bn
2. Net primary income to the rest of the world: R15bn

Therefore,
[tex]\[ \text{GNP} = \text{GDP at market prices} + \text{Net primary income from the rest of the world} \][/tex]
[tex]\[ \text{GNP} = R225bn + R15bn \][/tex]
[tex]\[ \text{GNP} = R240bn \][/tex]

### Q.5.1.2 Calculate the value of GDP at factor cost.
GDP at factor cost is calculated by subtracting Indirect taxes and adding Subsidies to the GDP at market prices.

1. GDP at market prices: R225bn
2. Indirect taxes: R35bn
3. Subsidies: R3bn

Therefore,
[tex]\[ \text{GDP at factor cost} = \text{GDP at market prices} - \text{Indirect taxes} + \text{Subsidies} \][/tex]
[tex]\[ \text{GDP at factor cost} = R225bn - R35bn + R3bn \][/tex]
[tex]\[ \text{GDP at factor cost} = R193bn \][/tex]

### Q.5.2 List the two other methods that are used to calculate the GDP.
Apart from the expenditure method, the two other methods for calculating GDP are:
1. The Income Approach: This method calculates GDP by adding up all incomes earned by individuals and businesses in the economy, including wages, profits, rents, and taxes minus subsidies.
2. The Production (or Output) Approach: This method calculates GDP by adding up the value of all goods and services produced in the economy, typically measured by value added at each stage of production.

### Q.5.3 Match-the-columns question.
For this question, we need additional data from columns A and B to match the macroeconomic objectives to the appropriate measures of assessment. Given that this additional data is not provided here, it is impossible to offer specific answers. However, the general format to respond would be something like: `Q.5.3.1 (appropriate letter)`.

Given the values we calculated:
- Gross National Product (GNP): R240bn
- GDP at factor cost: R193bn