Use the information in the table below to answer Q.3.1 to Q.3.3:

GDP at market prices R397bn

Net primary income payments to the rest of

the world

R37bn

Indirect taxes R23bn

Subsidies R11bn

Consumption of fixed capital R32bn

Q.3.1 Calculate the value of gross national income (GNI) at market prices. (3)

Q.3.2 Calculate the value of net national product (NNI) at market prices. (3)

Q.3.3 Calculate the value of net national income (NNI) at factor cost. (3)

Q.3.4 Identify the two major accounts of the balance of payments and explain the key

difference between the two accounts.

(4)

Q.3.5 Define the term, "inflation" and indicate the index that is used to measure the rate

of inflation.