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WAEC Economics 2009 Question 34

Question 34

National Income

Use the information below to answer the question.
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Gross National Product is equal to

  1. A.$40,000
  2. B.$50,000
  3. C.$105,000
  4. D.$125,000.
Show the answer and explanation

Answer: C ($105,000)

Explanation

GNP = GDP + factor receipts − factor payments = 100,000 + 25,000 − 20,000 = $105,000.