WAEC Economics 2023 Objective — Question 33
Question 33 of 50 from the West African Examinations Council (WAEC) Economics 2023 Objective paper, with the correct answer and a full explanation.
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To overcome the problem of double counting under the expenditure approach, A. value added method is used. B. only spending on final goods are considered. C. proper accounting standards must be used. D. spending on intermediate goods and inputs are considered.
- A. value added method is used
- B. only spending on final goods are consideredCorrect
- C. proper accounting standards must be used
- D. spending on intermediate goods and inputs are considered
Explanation
When the expenditure approach is used in computing national income, only expenditures on final goods will be considered to avoid the problem of double counting.
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