Use the following information given to answer this question
Total of all expenditure incurred during the year ₤80,000 m
Indirect taxes on goods and services ₤8,000m
Capital consumption ₤6,000m
Gross national expenditure at factor cost is_________
- ₤ 88,000μ
- ₤ 82,000μ
-
₤ 74,000μ
- ₤ 72,000μ
The correct answer is: C
Explanation
GNP at cost = Expenditure - Depreciation
⇒ 80,000 - 6,000 = ₤ 74,000μ