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JAMB Economics 1991 Question 47

Question 47

National Income

Stage of product: value of input; sale value of output
Maize farmer: –; N10.00
Flour miller: N10.00; N12.00
Baker: N12.00; N15.00
Shop keeper: N15.00; N20.00
The value of total output in the economy using the value added approach is

  1. A.N57.00
  2. B.N37.00
  3. C.N20.00
  4. D.N15.00
Show the answer and explanation

Answer: C (N20.00)

Explanation

Value added at each stage = output − input: 10 + 2 + 3 + 5 = N20, which equals the value of the final product.