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WAEC Economics 2019 Objective — Question 33

Question 33 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Which of the following factors will not underestimate the national income?

  • A. rapid decrease in prices
  • B. increased subsistence production
  • C. practice of specialization of labour
  • D. increase in value of services not paid forCorrect

Explanation

Unpaid services are not captured in national income accounting, so increases in unpaid services worsen underestimation of national income; the WAEC key associates this specifically with option D.

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