This question was avoided by most of the candidates, the very few who attempted it only provided answers for the (a) part of the question the (b) and (c) parts were left unanswered.  Candidates’ performance was generally poor for this question.

            Candidates needed to provide the following answers to score good marks in this question.

(b)        To the gross domestic product, we add the net factor incomes from abroad to obtain gross national product at market prices.

From the gross national product at market prices, we deduct depreciation or capital    consumption allowance, to obtain net national product at market prices.

                        From the net national product at market prices we deduct indirect taxes and add
                        subsidies to obtain net national product at factor cost.

(c)        The problems associated with the output method are:

1. Double counting.
2. Difficulty in measuring subsistence output.
3. Difficulty in estimating rental value of owner-occupied houses.
4. Difficulty in estimating the net income from abroad.
5. Inaccurate data in measuring the output of the sectors.