WAEC Economics 2011 Objective — Question 31

Question 31 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.

Which of the following over-estimates the value of national income?

A. A. Incomplete statistical data
B. B. Wrong timing of computation
C. C. Changes in prices of goods within the year
D. D. Double countingCorrect

Explanation

Double counting occurs when the value of an item included in the calculation of national output is counted twice. This may be as a result of counting it as an intermediate good and again as a final good; it may also result from inclusion of transfer payment on the statistics.

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