If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

Assessment: WAEC SSCE - Economics - 2012 (Objective) Subject: Economics

Question 1 Report

If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

Answer Details
The correct equation for national income is Y = C + I + (X - M). In this equation, Y represents national income, C represents consumption, I represents investment, X represents exports, and M represents imports. This equation is based on the national income accounting identity, which states that total income in an economy is equal to total expenditure. Therefore, national income (Y) is the sum of consumption (C), investment (I), and net exports (X - M). The net exports component is the difference between exports (X) and imports (M).
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