a) Explain the problems encountered in measuring national income accounts. (7 marks) b) Explain the following...

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a) Explain the problems encountered in measuring national income accounts. (7 marks) b) Explain the following terms: i. Unemployment ii. 111. i. ii. 111. Labour force. Philips' curve c) Consider an investment project which costs Ksh. 1000 million and is expected to yield and annual stream of income over a period of two years as follows; (2 marks) (2 marks) (2 marks) R₁ ksh. 0Million and = R₂ 900 million (2 marks) (3 marks) Give the meaning of marginal efficiency of capital Compute the marginal efficiency of capital for the project in (1) above. Suppose the market rate of interest is 12% using the investment decision whether the project should be accepted. rule, explain (2 marks) a) Explain the problems encountered in measuring national income accounts. (7 marks) b) Explain the following terms: i. Unemployment ii. 111. i. ii. 111. Labour force. Philips' curve c) Consider an investment project which costs Ksh. 1000 million and is expected to yield and annual stream of income over a period of two years as follows; (2 marks) (2 marks) (2 marks) R₁ ksh. 0Million and = R₂ 900 million (2 marks) (3 marks) Give the meaning of marginal efficiency of capital Compute the marginal efficiency of capital for the project in (1) above. Suppose the market rate of interest is 12% using the investment decision whether the project should be accepted. rule, explain (2 marks)

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a Problems encountered in measuring national income accounts include 1 Incomplete data It can be challenging to collect complete and accurate data on all economic activities within a country Some tran... View the full answer