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UI Post-UTME Economics 2025 (Model questions) Question 7

Question 7

National Income

Which of the following are NOT included in the computation of Gross Domestic Product (GDP) using the expenditure approach?
I. Government transfer payments
II. Export of goods and services
III. Intermediate goods
IV. Gross fixed capital formation

  1. A.I and III only
  2. B.II and IV only
  3. C.I, III and IV only
  4. D.II and III only
Show the answer and explanation

Answer: A (I and III only)

Explanation

Transfer payments are not payments for output, and intermediate goods are left out to avoid double counting. Exports and investment are part of C + I + G + (X − M).