Define the term per capita income. Show its usefulness and highlight some
of its inherent shotcomings.
(7 marks)
The table below represents estimated national income values for hypothetical
economy X in millions of shillings:
Gross National Product (at market prices) = 389.2
Depreciation allowance = 47.0
Indirect taxes less subsidies = 42.4
Business taxes = 11.4
Personal income taxes = 66.3
Government transfers = 59.3
Retained profits = 13.0
Based on the information provided, calculate the Net National Product at market
price, the Net National Income (at factor cost), Personal Income and the disposable
income for this economy (8 marks)