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In calculating the Gross National Product (GNP) by the income approach, all the following are...

Economics
JAMB 2025

In calculating the Gross National Product (GNP) by the income approach, all the following are included except

  • A. direct taxes paid by persons and companies
  • B. wages and salaries
  • C. rents on houses
  • D. retirement benefits
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Correct Answer: Option A
Explanation

The income approach to calculating Gross National Product (GNP) includes all income earned by the factors of production, i.e.,
rent, wages, interest, and profit. Direct taxes paid by persons and companies are not included in the calculation of GNP. Therefore,
the correct answer is 'direct taxes paid by persons and companies'.


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