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JAMB Economics 2000 Question 40

Question 40

National Income

Exclusions that make Gross National Product a poor measure of welfare are

  1. A.government purchases
  2. B.government military outlays
  3. C.wages and salaries
  4. D.housewives' services.
Show the answer and explanation

Answer: D (housewives' services.)

Explanation

Housewives' work is valuable but unpaid, so it is left out of GNP, which therefore understates welfare.