WAEC Economics 2025 Objective — Question 34
Question 34 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.
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A factor that may cause the national income to be overstated is the
- A. inclusion of wages of house-keepers.
- B. inclusion of the output of subsistence producers.
- C. use of value-added method for its calculation.
- D. inclusion of pension payments to retirees.Correct
Explanation
Pension payments are transfer payments (not earned from current production); including them overstates national income.
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