Question 30
National IncomeWhich of the following would increase the GNP of an economy?
- A.increased government expenditure on the salary of civil servants
- B.An increase in the proportion of the productively employed population
- C.A decrease in the rate of unemployment
- D.A decrease in output per worker
- E.An increase in the population dependency ratio.
Show the answer and explanation
Answer: B (An increase in the proportion of the productively employed population)
Explanation
When a bigger share of the population is in productive work, total output (GNP) rises.