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"National Income" question number distribution across years
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JAMB questions for "Economics :: National Income"
Q1
In national income accounting, tax is determined by the
A
level of income
B
level investment
C
level of consumption
D
rate of savings
E
Q2
In developing countries, it is easier to obtain accurate national income estimate through the
A
GNP
B
GDP
C
NDP
D
NNP
E
Q3
Double counting is a problem in computing national income when using the
A
expenditure method
B
income method
C
output method
D
value-added method
E
Q4
In the circular flow of income, an increase in saving causes
A
an increase in imports
B
a decrease in the income stream
C
an increase in household consumption
D
a decrease in exports
E
Q5
Cost-push inflation occurs when
A
production cost is high
B
factor prices decrease
C
there is too much money in circulation
D
government embarks on deficit financing
E
Q6

The output approach to measuring national income is based on the computation of

A

final output

B

factor cost

C

value added

D

profits earned

E
Q7

An example of injection into the circular flow of income is

A

taxes

B

pensions

C

imports

D

exports

E
Q8
A continuous increase in national income accompanied by the structural transformation of all indices is called
A
economic development
B
economic planning
C
economic growth
D
economic reforms
E
Q9
One way of solving the problem of double counting is by computing national income using the
A
expenditure method
B
value-added method
C
output method
D
income method
E
Q10
In the circulation flow of income model, the outflow variable represents
A
leakages
B
expenditure
C
injections
D
income
E
Q11
Correction in the GNP figures for price changes require the use of a
A
retail price index
B
price deflator
C
producer price index
D
price index
E
Q12
In computing national income, transfers are excluded because
A
they are received only by the poor
B
they are payments for productive activities
C
the figures reduce the size of national income
D
it is difficult to get the exact figures
E
Q13
In a particular year, the sum of the value in each sector of the economy was N4550 million. The amount represents the GNP measured by the
A
factors-price approach
B
output approach
C
income approach
D
expenditure approach
E
Q14
GDP differs from GNP because GDP
A
emphasizes the final goods and services produced within the country at a particular period
B
emphasizes goods and services produced within the country
C
is inclusive of depreciation
D
emphasizes the market value of all final goods and services produced by nationals
E
Q15
In an open economy, the GNP is measured as
A
C+I+G+(X-M)
B
C+I+G
C
C+I+G+M
D
C+I+G+X
E
Q16
To compare the standard of living among nations, the most widely used economic indicator is the
A
real domestic
B
real gross national income
C
real per capital income
D
per capita nominal income
E
Q17
If the country's GNP in the current year is 365 billion and the GNP in the base year is N50 billion the GNP deflator is
A
30.0
B
130.0
C
15.0
D
1.3
E
Q18
National income estimates can be used to
A
compare a country's growth rate with that of another over a period of time
B
differentiate between the rich and poor in a country
C
prepare a country's annual budget
D
project the level of a country's economic develoment
E
Q19
GNP is not a good measure of source welfare because there are unrecorded
A
indirect taxes
B
social costs
C
government subsidies
D
transfer payment
E
Q20
In national income accounting, NNP is derived by subtracting from the GNP
A
transfer payments
B
indirect taxes
C
allowance for wastage
D
capital consumption
E
Q21
Exclusions that make Gross National Product a poor measure of welfare are
A
government purchases
B
government military outlays
C
housewives' services
D
wages and salaries
E
Q22
Which of the following is used for measuring national income?
A
Income, output and expenditure
B
Import, expenditure and output
C
Output, income and wages
D
Export, import and output
E
Q23
National income at factor cost means national income at
A
current prices
B
nominal prices
C
last year prices
D
base year prices
E
Q24
From the table above, calculate the national income
A
N18 500m
B
N19 000m
C
N19 500m
D
N20 500m
E
Q25
The value of the multiplier depends on
A
MPC and level of income
B
level of personal income
C
level of personal saving
D
government policy and MPC
E
Q26
If a country's national income is increased from N1000 billion to N1100 billion over a period of 2 years, what was the average annual rate of growth of national income over the period?
A
5%
B
15%
C
20%
D
100%
E
Q27
A fall in the marginal propensity to save will lead to
A
a decrease in national income
B
an increase in national income
C
no change in national income
D
an increase in disposable income
E
Q28
If the marginal propensity to consume is 0.75 and private investment increases by N10 billion while government expenditure decreases by N15 billion, GDP will decrease by
A
N 12 billion
B
N 15 billion
C
N 20 billion
D
N 25 billion
E
Q29
Ajanka, a medical student entitled to an annual allowance of N6000, decided to leave the university to take up a job where the earns N7000 per annum. By this singular act the national income level will
A
increase by N1000
B
decrease by N7000
C
increase by N7000
D
increase by N13,000
E
Q30
The national income of a country indicates that the gross national income was N17,700 million and gross domestic product was N16,800 million, the difference of N900 million represents
A
debt repayments
B
investment aboard
C
net income from aboard
D
capital consumption
E
Q31
If national income rises by 6% and population rises by 3%, per capita income will
A
rise by 6 percent
B
fall by 3 percent
C
fall by 6 percent
D
rise by 3 percent
E
Q32
Using the table above, calculate the net income
A
N58m
B
N54m
C
N50m
D
N46m
E
Q33
According to the income approach to national income measurement, the national income of a country is equal to
A
the value of all output produced in the country over the relevant period of time at market price
B
the value of output at factor cost
C
the value added of production
D
C + I + G
E
Q34
The best index for international comparison of standards of living is the
A
gross national product
B
net national income
C
per capita income
D
gross national income
E
Q35
The G.D.P. of Nigeria will be grater than her G.N.P. if
A
the value of goods and services to Nigeria is greater than the value of those from Nigeria
B
consumption is greater than investment
C
government expenditures are greater than he aid foreign received
D
the value of goods and services produced by Nigerian businesses aboard is less than that of foreign businesses in Nigeria
E
Q36
What is the percentage increase in GNP between year 1 and year 2?
A
3.5%
B
14.0%
C
20.0%
D
35.0%
E
Q37
Calculate the GNP per head of the population in year 1 and year 2.
A
N2000.00; N1000.00
B
N1250.00; N2000.00
C
N1000.00; N2000.00
D
N1000.00; N1125.00
E
Q38
In national income accounting aggregate saving in any year is defined as
A
all disposable income not spent on consumption
B
all savings deposits in all banks during in all banks during the year
C
all savings and time deposits in all banks during the year
D
the value of inventory change for the year
E
Q39
When of the following combinations is a veritable set of development indicators?
A
growth of government expenditure and imports
B
Growth of population and national income
C
High fertility, literacy and school enrollments rates
D
low infant mortality and high per capita income and literacy rates
E
Q40
If an economy grows at an annual grows at an annual rate 5% of which 3% is deemed to be due to improvement in the productivity of labour and capital combined, the remaining 2% is generally attributed
A
the size of the population
B
technical progress
C
the environment
D
the amount of natural resources
E
Q41
It is importance to measure the National Income of a country because
A
it is major determinant of standard of living
B
it reveals hazards of development like pollution and congestion
C
It reveals the distribution of the citizens' savings in foreign banks
D
its size determines the extent of political stability
E
Q42
The Gross Domestic Product is defined as the total value of
A
all final goods and services produced in a country during the year
B
all assets of a country in a particular year
C
exports net of total value of imports
D
all receipts
E
Q43
The value of total output in the country in the economy using the value added approach is
A
N57.00
B
N37.00
C
N20.00
D
N15.00
E
Q44
If W stands for wages/salaries, P for profit, R for interest and Z for rent on land and real estate, then national inocme is
A
W-P-R-Z
B
W+P+Z-R
C
P-R-Z+W
D
W+P+R+Z
E
Q45
In the national income and product accounts double counting is avoided if
A
only final goods are counted
B
only intermediate goods are counted
C
only intermediate and final goods are counted
D
the value of all goods and services are added togther
E
Q46
the lower half of the diagram indicates
A
the flow of goods and services
B
payments for goods and services
C
the flow of income
D
the government transactions
E
Q47
The system of measurement of national income as the sum of all final demands is called
A
income approach
B
expenditure approach
C
value-added
D
final demands approach
E
Q48
The difference between gross national product and net national product is equal to
A
gross investment
B
net investment
C
net foreign income
D
capital depreciation
E
Q49
The value of the total output produced within Nigeria by all residents (citizens and non-citizens) is referred as the
A
gross national product
B
disposable income
C
national income
D
gross domestic product
E
Q50
The multiplier is defined as
A
the ratio of the change in income to the change in investment
B
the change in investment divided by the change in income
C
1/(MPC)
D
1/(1-MPS)
E
Q51
If C stands for consumption expenditure, I for investment, X for exports, and for imports, then national income is
A
economic growth
B
economic development
C
structural change
D
make Nigeria a super-power
E
Q52
A sustained increase in the per capital income of a country over a period of time is called
A
economic growth
B
economic development
C
structural change
D
stagflation
E
Q53
Which of the following occurs in the circular flow of economics activities with no leakages?
A
Consumption equal saving
B
Saving equals investment
C
Imports equal exports
D
National income equals national expenditure
E
Q54
Which of the following items is substracted when computing Gross National Product at factor cost, but the exppenditure method?
A
Consumption expenditure
B
Indirect taxes
C
Exports and property income from aboard
D
Gross Domestic Fixed Capital Formation
E
Q55
In estimating the national income of a country, the three approaches usually adopted are the
A
expenditure value-added and output
B
income, final product and output
C
expenditure income and output
D
avoidance of double counting, final expenditure and value-added
E
Q56
If technology becomes less capital-intensive, it means
A
an increase in the capital / labour ratio
B
an increase in the labour / capital ratio
C
a fall in the labour / capital ratio
D
increased unemployment
E
Q57
For the improvement of the welfare of a people, a high production level is not enough because
A
the have-nots deserve more than a fair share
B
equitable distribution is necessary
C
productive efficiency is vital
D
saving in the country must be guaranteed at more than 50 per cent of income earned
E
Q58
The difference between the Gross Domestic Product and the Gross National Product is the
A
allowance for total depreciation
B
total interest payments
C
total tax and interest payments
D
net income from abroad
E
Q59
The production within the domestic territory of a country is called the
A
net national product
B
gross domestic product
C
net income
D
disposable income
E
gross national product
Q60
The above diagram illustrates
A
the circular flow of income
B
gross national plus depreciation
C
incomes of the private sector
D
the profit of business enterprises
E
the output approach to national income determination