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JAMB Economics 2001 Question 36

Question 36

National Income

In national income accounting, NNP is derived by subtracting from the GNP

  1. A.transfer payments
  2. B.indirect taxes
  3. C.allowance for wastage
  4. D.capital consumption
Show the answer and explanation

Answer: D (capital consumption)

Explanation

Net National Product = GNP − capital consumption (depreciation), the value of capital worn out in producing the output.