Waec Model Questions Vol1 2022 Economics Question 7

Practice essay / theory question 7 from the 2022 Waec Model Questions Vol1 Economics examination. This question covers National Income, GDP, GNI, Informal Sector .

Waec Model Questions Vol1 2022 Economics Essay / Theory
Topics: National Income GDP GNI Informal Sector
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • essay

The following data relate to the economic activity of a developing country for the year ended 31 December 2022:

Question Parts

( a )
Using the income approach, calculate the Gross Domestic Product (GDP) for the year. The data are: (i) Total wages and salaries paid to employees: ₦ 2,500,000,000; (ii) Gross operating surplus (profits) of corporations: ₦ 1,200,000,000; (iii) Mixed income of unincorporated enterprises: ₦ 800,000,000; (iv) Taxes less subsidies on production and imports: ₦ 300,000,000.
( b )
Given that net factor income from abroad for the same period is –₦ 150,000,000, compute the Gross National Income (GNI).
( c )
The informal sector is estimated to contribute about 25 % of total output but is not fully captured in the above data. Discuss why GNI may be a more appropriate indicator of national welfare than GDP in this economy, and suggest one policy measure that could improve the reliability of national income estimates.

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About This Question

This is Waec Model Questions Vol1 2022 Economics Question 7. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Economics examination.

The question covers National Income, GDP, GNI, Informal Sector .

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