Question

Assume the following national accounts aggregates in 20X1 (at current prices).

GDP at market prices
Primary income from the rest of the world
Gross National Income at market prices
Calculate the total primary income to the rest of the world.
A 700 000
B. 4 500 000
OC. 900 000
OD. 200 000
R millions
5
000 000
200 000
4 500 000

Answer 1

Answer: Gross National Income (GNI) at market prices is equal to GDP at market prices plus primary income from the rest of the world minus primary income to the rest of the world. Rearranging this equation, we can solve for primary income to the rest of the world as follows:

Primary income to the rest of the world = GDP at market prices + primary income from the rest of the world - GNI at market prices

Substituting the values given in your message, we get:

Primary income to the rest of the world = 5,000,000 + 200,000 - 4,500,000

= 700,000

Therefore, the total primary income to the rest of the world in 20X1 is 700,000 (in millions).

Step-by-step explanation: Hope this helps you :)