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WAEC Economics 1997 Question 20

Question 20

National Income

The actual output of an economy is the output

  1. A.which would exist if all resources were fully employed
  2. B.produced by currently employed labour, capital and land
  3. C.produced in the consumer goods sector
  4. D.produced in the capital goods sector
  5. E.produced by the agriculture sector
Show the answer and explanation

Answer: B (produced by currently employed labour, capital and land)

Explanation

Actual output is what the resources now employed produce; output at full employment is potential output.