WAEC Economics 2022 Theory — Question 1

SECTION A 1. A hypothetical national income data for a country in a particular year is presented below. ITEM | $ MILLION Wages and salaries | 250 Income paid abroad | 75 Income from self employment | 120 Stock appreciation | 5 Interest | 10 Income received from abroad | 50 Rent | 25 Depreciation allowance | 3 Royalties | 2 Profits and dividends | 35 From the data above, answer the following questions. Calculate the: (a) Gross Domestic Product (GDP); (b) Gross National Product (GNP); (c) Net National Product (NNP). The diagram below shows the effects of the introduction of a subsidy on the production of maize. [Diagram: Price(S) vs Quantity(bags) graph, showing curves X (demand curve), Y (original supply curve before subsidy/S), Z (new supply curve after subsidy/S1); P=15 intersecting at Q=20, and P=10 intersecting at Q=40] Study the diagram and answer the questions that follow.