Answer to Question #134395 in Macroeconomics for Tlhogi

Question

GDP at market prices R397bn

Net primary income payments to the rest of the world R37bn

Indirect taxes R23bn

Subsidies R11bn

Calculate the value of gross national income (GNI) at market prices.

Answer 1

$GNI = GNP+ NET FACTORS$

Convert the Gross Domestic Product at market price to Gross National Product at market price. For this case convert Domestic to National.

$GNI = 397 + -37$

If Income payment is included,

GNI = 397-37,

Therefore GNI = R360bn

Depreciation is also known as consumption of fixed capital-fall in value of capital goods due to wear and tear.