passwella.
Menu

JAMB Economics 1988 Question 43

Question 43

National Income

Which of the following items is subtracted when computing Gross National Product at factor cost, by the expenditure method?

  1. A.Consumption expenditure
  2. B.Indirect taxes
  3. C.Exports and property income from abroad
  4. D.Gross Domestic Fixed Capital Formation.
Show the answer and explanation

Answer: B (Indirect taxes)

Explanation

Market prices include indirect taxes, so to get GNP at factor cost you subtract indirect taxes (and add subsidies).