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WAEC Economics 2009 Question 36

Question 36

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 Net Domestic Product is

  1. A.$55,000
  2. B.$60,000
  3. C.$140,000
  4. D.$165,000.
Show the answer and explanation

Answer: B ($60,000)

Explanation

NDP = GDP − depreciation = 100,000 − 40,000 = $60,000.