Neco 2022 Economics Question 7

Practice essay / theory question 7 from the 2022 Neco Economics examination. This question covers National Income .

Neco 2022 Economics Essay / Theory

Topic: National Income

Question 7 NECO • 2022 • ECONOMICS • essay

The table below shows the aggregate economic data for Econland for the year 2022 (all figures are in ₦ millions).\n\n| Item | Value |\n|-----------------------------------|-------|\n| Consumption (C) | 2,500 |\n| Investment (I) | 800 |\n| Government expenditure (G) | 1,200 |\n| Exports (X) | 600 |\n| Imports (M) | 500 |\n| Indirect taxes (T) | 300 |\n| Subsidies (S) | 50 |\n| Depreciation (D) | 200 |\n| Factor incomes earned by residents from abroad (F_in) | 150 |\n| Factor incomes earned by non‑residents from the domestic economy (F_out) | 120 |

Question Parts

( a )

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

( b )

Using the data above, determine (i) Gross National Product (GNP) at factor cost and (ii) Net National Product (NNP) at factor cost.

( c )

Discuss two ways in which an increase in depreciation would affect (i) the measurement of national income and (ii) the interpretation of economic welfare.

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About This Question

This is Neco 2022 Economics Question 7. It is one of the essay questions from the 2022 Neco Economics examination.

The question covers National Income .

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