Gross national expenditure at factor cost is_________?

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

Gross national expenditure at factor cost is_________?

A. ₤ 88,000μ
B. ₤ 82,000μ
C. ₤ 74,000μ
D. ₤ 72,000μ

Correct Answer: Option D

D. ₤ 72,000μ

Explanation

GNP at cost = Expenditure – Depreciation
⇒ 80,000 – 6,000 = ₤ 72,000μ