Neco 2021 Economics Question 7

Practice essay / theory question 7 from the 2021 Neco Economics examination. This question covers National Income .

Neco 2021 Economics Essay / Theory

Topic: National Income

Question 7 NECO • 2021 • ECONOMICS • essay

The following data are extracted from the accounts of Country X for the year ended 31 December 2023: - Household consumption expenditure (C): ₦ 2,500 billion - Government expenditure (G): ₦ 1,200 billion - Gross private domestic investment (I): ₦ 800 billion - Exports (X): ₦ 600 billion - Imports (M): ₦ 450 billion - Net factor income from abroad (NFA): -₦ 30 billion (net outflow) - Indirect taxes minus subsidies (T): ₦ 150 billion - Depreciation (consumption of fixed capital) (D): ₦ 200 billion - Statistical discrepancy (SD): ₦ 20 billion (positive) Answer the following questions:

( a )

Calculate the Gross Domestic Product (GDP) at market price using the expenditure approach.

( b )

Using the result from part (a), determine the Gross National Product (GNP) at factor cost.

( c )

Explain two major limitations of using GDP as a measure of the welfare of a nation.

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This is Neco 2021 Economics Question 7. It is one of the essay questions from the 2021 Neco Economics examination.

The question covers National Income .

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