JAMB and WAEC Economics questions

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

1. Question 401· National income· WAEC

   Gross National Product equals Gross Domestic Product plus

   • Adepreciation
   • Bnet income from abroad
   • Cindirect taxes
   • Dsubsidies

   Show answer

   Answer: B. net income from abroad

   Explanation and discussion

2. Question 402· National income· JAMB

   If the marginal propensity to save is 0.2, the multiplier is

   • A0.2
   • B5
   • C2
   • D8

   Show answer

   Answer: B. 5

   Explanation and discussion

3. Question 403· National income· JAMB

   A country has a national income of ₦200 billion and a population of 40 million. Find its per capita income.

   • A₦500
   • B₦8,000
   • C₦5,000
   • D₦50,000

   Show answer

   Answer: C. ₦5,000

   Explanation and discussion

4. Question 404· National income· WAEC

   National income figures may understate welfare because they exclude

   • Awages
   • Bunpaid housework and subsistence output
   • Cprofits
   • Drent

   Show answer

   Answer: B. unpaid housework and subsistence output

   Explanation and discussion

5. Question 405· National income· JAMB

   If the marginal propensity to consume is 0.8, the value of the investment multiplier is

   • A0.2
   • B5
   • C1.25
   • D8

   Show answer

   Answer: B. 5

   Explanation and discussion

6. Question 406· National income· JAMB

   Using the expenditure method, national income is measured as

   • Ataxes minus subsidies
   • Bwages + rent + interest + profit only
   • Cthe value of output only
   • DC + I + G + (X − M)

   Show answer

   Answer: D. C + I + G + (X − M)

   Explanation and discussion

7. Question 407· National income· WAEC

   The multiplier is larger when the marginal propensity to consume is

   • Ahigher
   • Blower
   • Czero
   • Dnegative

   Show answer

   Answer: A. higher

   Explanation and discussion

8. Question 408· National income· JAMB

   Injections into the circular flow include

   • Adepreciation
   • Bsavings, taxes and imports
   • Cconsumption only
   • Dinvestment, government spending and exports

   Show answer

   Answer: D. investment, government spending and exports

   Explanation and discussion

9. Question 409· National income· WAEC

   GNP is ₦800 billion and depreciation is ₦50 billion. Find the Net National Product.

   • A₦750 billion
   • B₦850 billion
   • C₦16 billion
   • D₦40,000 billion

   Show answer

   Answer: A. ₦750 billion

   Explanation and discussion

10. Question 410· National income· WAEC

    GDP at market prices minus indirect taxes plus subsidies equals

    • AGNP
    • BGDP at factor cost
    • CNNP
    • Dpersonal income

    Show answer

    Answer: B. GDP at factor cost

    Explanation and discussion

11. Question 411· 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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    Answer: C. expenditure methods

    Explanation and discussion

12. Question 412· 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

    Show answer

    Answer: C. final goods and services produced within a country in a given period

    Explanation and discussion

13. Question 413· 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%

    Show answer

    Answer: C. 4%

    Explanation and discussion

14. Question 414· 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

    Show answer

    Answer: B. are not payments for current production

    Explanation and discussion

15. Question 415· National income· JAMB

    Gross National Product equals GDP plus

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

    Show answer

    Answer: D. net factor income from abroad

    Explanation and discussion

16. Question 416· 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

    Show answer

    Answer: A. counting only final goods or the value added at each stage

    Explanation and discussion

17. Question 417· National income· WAEC

    Per capita income is national income divided by the

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

    Show answer

    Answer: C. population

    Explanation and discussion

18. Question 418· 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

    Show answer

    Answer: A. the large subsistence and informal sector

    Explanation and discussion

19. Question 419· 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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    Answer: C. the flow of money and goods between households and firms

    Explanation and discussion

20. Question 420· 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

    Show answer

    Answer: A. counting only final goods or the value added at each stage

    Explanation and discussion