Neco 2024 Economics Question 7

Practice essay / theory question 7 from the 2024 Neco Economics examination. This question covers National Income, GDP, GNP, NDP, NNP .

Neco 2024 Economics Essay / Theory

Topics: National Income GDP GNP NDP NNP

Question 7 NECO • 2024 • ECONOMICS • essay

The following data relate to the economic activity of Country X for the year 2023 (in ₦ billions): - Compensation of employees: 450 - Rent: 80 - Interest: 70 - Profits: 150 - Indirect taxes net of subsidies: 60 - Depreciation (capital consumption): 90 - Net factor income from abroad: -20 (net outflow) Using this information, answer the questions below.

Question Parts

( a )

Define Gross Domestic Product (GDP) using the income approach and list its main components.

( b )

Using the data above, calculate: (i) Gross Domestic Product (GDP) at market prices, (ii) Net Domestic Product (NDP), (iii) Gross National Product (GNP), and (iv) Net National Product (NNP). Show all steps.

( c )

Explain two major limitations of using GDP as an indicator of the economic welfare of a country.

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About This Question

This is Neco 2024 Economics Question 7. It is one of the essay questions from the 2024 Neco Economics examination.

The question covers National Income, GDP, GNP, NDP, NNP .

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