WAEC Economics 2012 Paper

Concept:National income is the total factor income earned by the normal residents of a country in one year.Explanation:National income is measured as Net National Product at factor cost ($NNP_{fc}$).It is obtained by taking Gross National Product at market prices ($GNP_{mp}$) and subtracting depreciation and net indirect taxes.Net indirect taxes mean indirect taxes minus subsidies.Thus, national income includes only factor incomes such as wages, rent, interest, and profit.So among the given alternatives, the correct definition is Net National Product at factor cost.Answer:C. Net National Product at factor cost