NATIONAL OPEN UNIVERSITY OF NIGERIA
FACULTY OF AGRICULTURAL SCIENCES
DEPARTMENT OF AGRICULTURAL ECONOMICS AND EXTENSION
KM. 4 KADUNA-ZARIA EXPRESS WAY.
2020_2 EXAMINATION 1234
Course Code: AEM724
Course Title: Macro-Economics
Credit Unit: 2
Exam Question: POP 2020_2
Total Score: 70 Marks
Instruction: Answer compulsory question 1 (25 marks) and any other 3 questions ( 15 marks
each).
Time Allowed: 2 Hours.
1a. Calculate the average propensity to invest in an economy if an investment of #123,000.00 yields
Income of #312,000.00 per annum (5 marks).
b. Explain any five components of GDP (5 marks).
c. Economic growth is not synonymous with economic development. Discuss (5 marks).
d. Describe any five common types of unemployment (5 marks).
e. State five problems of using GDP per capita as a yardstick for measuring human welfare (5 marks).
2a. Explain five difficulties in calculating national income (10 marks).
b. Define GDP and give any four examples of its variables (5 marks).
3a. Define disposable income and express it algebraically (10 marks).
b. What is net national product (5 marks).
4a. Outline any five importance of National Income analysis (10 marks).
b. Distinguish clearly between Average Propensity to Consume and Marginal Propensity to consume (5
Marks).
5a. Discuss the four objective factors affecting consumption (10 marks).
b. Differentiate between autonomous and induced investment (5 marks).
6a. Mention the principal objectives of monetary policy (5 marks).
b. State the Relative Income Hypothesis (5 marks).
c. Outline any five functions of money in an economy (5 marks)
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