Use the following information given to answer this question

Total of all expenditure incurred during the year ₤ 80,000m

Indirect taxes on goods and services ₤ 8,000m

Capital consumption ₤ 6,000m

National income is__________

  • A ₤74,000m
  • B ₤66,000m
  • C ₤60,000m
  • D ₤14,000m
jamb 2019economics

The correct answer is B. ₤66,000m

National income is calculated by subtracting indirect taxes and capital consumption from the total expenditure incurred during the year.

So, let’s calculate:

National income = Total expenditure - Indirect taxes - Capital consumption = ₤80,000m - ₤8,000m - ₤6,000m = ₤66,000m

Therefore, the national income is B. ₤66,000m. 

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