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WAEC Economics 2017 Objective — Question 32

Question 32 of 50 from the West African Examinations Council (WAEC) Economics 2017 Objective paper, with the correct answer and a full explanation.

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The value-added method used in measuring national income is to

  • A. A. measure output at factor cost
  • B. B. avoid multiple counting of outputCorrect
  • C. C. deduct depreciation of capital assets
  • D. D. add net factor income from abroad

Explanation

Value added approach avoids multiple counting in National Income (NI) as only value added by the firm will be considered.

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