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WAEC Economics 2009 Question 35

Question 35

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 National Income is equal to

  1. A.$45,000
  2. B.$60,000
  3. C.$65,000
  4. D.$195,000.
Show the answer and explanation

Answer: C ($65,000)

Explanation

National income = GNP − depreciation = 105,000 − 40,000 = $65,000.