2016 - WAEC Economics Past Questions and Answers - page 4

Double counting is an error caused as a result of illogical calculation. This term is used in economics to refer to the faulty practice of counting the value of a nation's goods more than once. Since goods are produced in stages, through specialized channels of production, many intermediate goods are used to produce a final good. If the values of each of these intermediate goods is added together, without subtracting expenditures incurred during the production process, the error of double counting will be committed.

The main difference is that GNP (Gross National Product) takes into account net income receipts from abroad. GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) produced in a particular country. GNP = GDP + net property income from abroad.

The main difference is that GNP (Gross National Product) takes into account net income receipts from abroad. GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) produced in a particular country. GNP = GDP + net property income from abroad.

The Income Method measures national income from the side of payments made to the primary factors of production in the form of rent, wages, interest and profit for their productive services in an accounting year.

National banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation.

Inflation is simply a market condition where plenty money is used to pay for less goods.  when there is excess mpney in circulation in the economy, it can lead to inflation.  In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. real interest rates fall as inflation increases. (because there is excess money in the economy, borrowing will not be expensive).

Cost push inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.

Agricultural bank; a type of bank that lends money to farmers for longer periods of time and charges them less interest than other types of banks. they do not trade in the capital market

 The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.

Indirect taxes; An indirect tax is a tax levied on goods and services rather than on income or profits. indirect taxes are regressive in nature. They are consumption based taxes. Service tax, value added tax,customs and excise duty etc are examples of 

Taxes are regressive when they impose a harsher burden on the poor than on the rich.