JAMB Economics 2014 Objective — Question 25

Question 25 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.

Which of the following can be used to measure the Gross National Product in an open economy?

A. C+I+G+(X−M)Correct
B. C+I+G+(X+M)
C. C+I+G+X
D. C+I+G

Explanation

GDP in an open economy (an economy that is involved in international trade) can be calculated as C+I+G+X−M, where C is household consumption expenditure, I is investment spending, G is government expenditure, X is export and M is the amount spent on foreign goods (imported goods).

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