JAMB and WAEC Economics questions: National income

36 questions with answers and explanations. Tap an option to check yourself.

1. Question 21· National income· JAMB

   National income can be measured by the output, income and

   • Atax method
   • Bcensus method
   • Cexpenditure methods
   • Dbalance method

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   Explanation and discussion

2. Question 22· National income· JAMB

   Gross Domestic Product (GDP) is the total value of

   • Agovernment spending
   • Ball goods imported in a year
   • Cfinal goods and services produced within a country in a given period
   • Dmoney in circulation

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   Explanation and discussion

3. Question 23· National income· WAEC

   Nominal GDP rises by 12% in a year in which prices rise by 8%. Real GDP rises by about

   • A12%
   • B20%
   • C4%
   • D8%

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   Explanation and discussion

4. Question 24· National income· JAMB

   Pensions and other transfer payments are excluded from national income because they

   • Aare too small
   • Bare not payments for current production
   • Care paid by government
   • Dare not taxed

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   Explanation and discussion

5. Question 25· National income· JAMB

   Gross National Product equals GDP plus

   • Asubsidies
   • Bdepreciation
   • Cindirect taxes
   • Dnet factor income from abroad

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   Explanation and discussion

6. Question 26· National income· JAMB

   Double counting in national income accounting is avoided by

   • Acounting only final goods or the value added at each stage
   • Bcounting all intermediate goods
   • Cexcluding services
   • Dcounting only exports

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7. Question 27· National income· WAEC

   Per capita income is national income divided by the

   • Anumber of firms
   • Bnumber of workers
   • Cpopulation
   • DGDP

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8. Question 28· National income· WAEC

   A problem of measuring national income in Nigeria is

   • Athe large subsistence and informal sector
   • Btoo many statisticians
   • Chigh exports
   • Dstable prices

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   Explanation and discussion

9. Question 29· National income· JAMB

   The circular flow of income shows

   • Aonly exports
   • Bonly government spending
   • Cthe flow of money and goods between households and firms
   • Dbarter trade

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   Explanation and discussion

10. Question 30· National income· WAEC

    Double counting in national income accounts is avoided by

    • Acounting only final goods or the value added at each stage
    • Bcounting all transactions
    • Cincluding transfer payments
    • Dcounting intermediate goods twice

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    Explanation and discussion

11. Question 31· National income· JAMB

    Double counting in national income is avoided by

    • Acounting intermediate goods
    • Bcounting only final goods or value added
    • Ccounting all sales
    • Dignoring services

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    Explanation and discussion

12. Question 32· National income· JAMB

    Net National Product (NNP) is equal to

    • AGDP plus taxes
    • BGNP plus depreciation
    • CGDP minus imports
    • DGNP minus depreciation

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    Explanation and discussion

13. Question 33· National income· WAEC

    The circular flow of income shows the flow of money between

    • Ahouseholds and firms
    • Bbanks only
    • Cschools and hospitals
    • Dfarmers only

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    Explanation and discussion

14. Question 34· National income· WAEC

    Adding net income from abroad to Gross Domestic Product gives

    • ANet Domestic Product
    • BGross National Product
    • Cpersonal income
    • Ddisposable income

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    Explanation and discussion

15. Question 35· National income· WAEC

    Gross Domestic Product (GDP) is the total value of goods and services produced

    • Aby government only
    • Bby citizens abroad only
    • Cwithin a country in a year
    • Din one month

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16. Question 36· National income· WAEC

    Consumption is ₦500 bn, investment ₦200 bn, government spending ₦150 bn, exports ₦120 bn and imports ₦70 bn. Find GDP at market prices.

    • A₦970 bn
    • B₦1,040 bn
    • C₦900 bn
    • D₦850 bn

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    Explanation and discussion