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WAEC Economics 2021 Question 32

Question 32

National Income

The following data relates to the national income of a country. Use it to answer the question.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120
What is the country's Net National Product (NNP) at factor cost?

  1. A.$3,050
  2. B.$2,680
  3. C.$2,230
  4. D.$2,220
Show the answer and explanation

Answer: C ($2,230)

Explanation

NNP at factor cost = 3,050 − 700 − 120 = $2,230.