Waec Model Questions Vol1 2017 Economics Question 7

Practice essay / theory question 7 from the 2017 Waec Model Questions Vol1 Economics examination. This question covers National Income .

Waec Model Questions Vol1 2017 Economics Essay / Theory
Topic: National Income
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • essay

The table below shows the main macro‑economic aggregates for Country X for the year 2022 (all values are in ₦ billions).\n\n- Consumption (C) = 12,000\n- Investment (I) = 3,500\n- Government expenditure (G) = 4,200\n- Exports (X) = 2,800\n- Imports (M) = 3,100\n- Net factor income from abroad (NFIA) = –150\n- Indirect taxes less subsidies = 800\n- Depreciation (capital consumption allowance) = 1,200\n\nUsing the data above, answer the following questions.

Question Parts

( a )
Calculate the Gross Domestic Product (GDP) at market prices using the expenditure approach.
( ) State the formula used.
( ) Show the calculation and give the numerical answer.
( ) Briefly explain why indirect taxes are not added again in this approach.
( b )
Using the same data, compute the Net National Product (NNP) at factor cost.
( ) Calculate GNP.
( ) From GNP obtain NNP at factor cost and give the final figure.
( ) State two limitations of using NNP as an indicator of economic welfare.
( c )
The government is considering revising the national accounts to include informal‑sector activities estimated at ₦2,500 bn. Discuss how the inclusion of the informal sector would affect the computed national‑income figures and the likely policy implications.

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About This Question

This is Waec Model Questions Vol1 2017 Economics Question 7. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Economics examination.

The question covers National Income .

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