Test Index

WAEC Economics 2021 Paper

Question : 32

Total: 50

Use this data below to answer the question

\$3.050
\$2,680
\$2,230
\$2.220

Solution:

Concept:

NNP at factor cost is the net money value of all goods and services produced by residents of a country, adjusted for depreciation and net indirect taxes.

Explanation:

From the data:

GDP_{\text{MP}} = \$2{,}800

Net factor income from abroad

= +\$250

Therefore,

GNP_{\text{MP}} = 2800 + 250 = \$3{,}050

Subtract depreciation

= \$120

Subtract indirect taxes

= \$700

So,

NNP_{\text{FC}} = 3050 - (120 + 700)

= 3050 - 820

= \$2{,}230

Answer:

Option C:

\$2{,}230

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