Most of the candidates were not attracted to this question. The question required that candidates carry out simple calculations involving some estimates in national income accounting. A good number of the candidates who attempted this question fell short of expectation. This fact affected their scores negatively. Candidates were expected to answer thus:
(a) Gross domestic product (GDP) is the total market value of all final goods
and services produced annually in the country.
(b) (i) GDP = C + I + G + X - M
GDP = 640 + 180 + 220 + 175 – 202
= $1,013.00 million
(ii) GNP = GDP + Net property income from abroad
= 1,013.00 + 80.00
= $1,093.00
(iii) NNP = GNP – Consumption of fixed capital
= 1,093.00 – 115.00
= $978.00
(c) (i) National Income at factor cost =
= NNP at market price – Indirect taxes + subsidies
= 978 – 322 + 48
= $704.00
