National Income Generix Content - National Income
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WAEC questions for "Economics :: National Income"
Q1

The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when

A

Average Product is maximum

B

Average Product is minimum

C

Marginal Product is maximum

D

Maximum Product is increasing

E
Q2

Disposable income is total income

A

less tax

B

divided by tax

C

plus tax

D

multiplied by tax

E
Q3

The Gross National Product is equal to

A

\$40,000

B

\$50,000

C

\$105,000

D

\$125,000

E
Q4

The National Income is equal to

A

\$45,000

B

\$60,000

C

\$65,000

D

\$195,000

E
Q5

The Net Domestic Product is

A

\$55,000

B

\$60,000

C

\$140,000

D

\$165,000

E
Q6

The national income of a country ca be estimated through the

A

output approach

B

input approach

C

empirical approach

D

census approach

E
Q7

The Gross Domestic Product (GDP) is equal to

A

\$825m

B

\$925m

C

\$940m

D

\$950m

E
Q8

The net capital formation is

A

\$115m

B

\$125m

C

\$915m

D

\$925m

E
Q9

The Net National Product (NNP) is Gross National Product (GNP) less

A

domestic product

B

foreign product

C

depreciation

D

investment

E
Q10

If the population of a country is low and the Gross National Product is high, the per capita income will be

A

high

B

low

C

average

D

unitary

E
Q11

The population of a country in a certain year was fifty million and the per capita income was \$2050. What was the national income?

A

\$750,000 million

B

\$ 100,250 million

C

\$ 102,500 million

D

\$125,050 million

E
Q12

The difference between the Gross National Product (GNP) and the Gross Domestic Product (GDP) is

A

total investment payment

B

net income generated internally

C

total national savings

D

net income from aboard

E
Q13

In calculating the national income of a country x, the cost of both raw materials and the finished products were included. This case of

A

double counting

B

price fluctuations

C

price differentiation

D

price discrimination

E
Q14

The national income of a country can by estimated by the

A

cost-benefit method

B

distribution method

C

expenditure method

D

consumption method

E
Q15

Which of the following is excluded when estimating national income?

A

Dividend

B

Wages and salaries

C

Transfer' payments

D

Profits

E
Q16

It is necessary to estimate the national income of a country because it

A

indicates the overall performance of the economy

B

ensures equitable distribution of wealth

C

assists investors in identifying ventures

D

enables government conserve national resources

E
Q17

Gross Domestic Product (GDP) at market prices plus net factor income from aboard gives

A

gross capital formation

B

net capital formation

C

disposable income

D

gross national product

E
Q18
Per Capita income in any West Africa country is measured by
A
dividing the GNP by total population
B
adding the total saving to the GNP
C
multiplying the GNP by total population
D
subtracting GNP from the GDP
E
Q19
Gross National Product (GNP) less depreciation is known as
A
Gross Domestic Product
B
Gross National Income
C
Fixed National Product
D
Net National Product
E
Q20
Which of the following is a factor affecting the size of national income?
A
Size of the active population
B
Taste of the consumers
C
D
Credit-worthiness of the neighbouring countries
E
Regularity of payment of national debt
Q21
The actual output of an economy is the output
A
which would exist if all resources were fully employed
B
produced by currently employed labour, capital and land
C
produced in the consumer goods sector
D
produced in the capital goods sector
E
produced by the agriculture sector
Q22
In calculating the Gross National Product (GNP) by the income approach, all the following are included except
A
wages and salaries
B
direct taxes paid by persons and companies
C
rent on houses
D
retirement benefits
E
Q23
Net National Product (NNP) is equal to the
A
Gross Domestic Product (GDP) less depreciation
B
Gross National Product (GNP) less depreciation
C
Gross Domestic Product (GDP) plus depreciation
D
Gross National Product (GNP) plus depreciation
E
Gross National Product (GNP) plus Taxation
Q24

The difference between the Gross Domestic Product (GDP) and the Gross National Product (GNP) is the

A

allowance for total depreciation

B

total interest payment

C

D

total tax and interest payments

E

net internally generated income

Q25

The magnitude of the national income of a country depends on all the following except the

A

quantity of natural resources available

B

level of technical know-how

C

mobility of labour

D

level of productivity

E

quality and quantity of factors of production

Q26

Which of the following would increase the GNP of an economy?

A

Increased government expenditure on the salary of civil servants

B

An increase in the production of the productively employed population

C

A decrease in the rate of Unemployment

D

A decrease in output per worker

E

An increase in the population dependency ratio

Q27

Which of the following items is not included in measuring national income by the income approach?

A

Wages and salaries of public servants

B

Students' grants and scholarships

C

Profits of companies

D

Income earned by self employed persons such as lawyers

E

Rents on property

Q28

If an economy is growing at an annual rate of 7 % and 4 % of it is known to be due to the improvement in labour and capital combined, the balance of 3 % is usually attributed to

A

land and entrepreneur

B

abundance of natural resources

C

level of hiuman capital

D

technical progress and related factors

E

Q29

Which of the following is not true of capital income?

A

It helps in the assessment of standard of living

B

It is calculated as National Income Population

C

It is calculated as Population National Income

D

It is used by UNO to assess and assist developing countries

E

It is used as one of the indicators of economic growth

Q30

All the following are sources of finance  to a Joint Stock Company except

A

bank loan

B

equity shares

C

debentures

D

preferences shares

E

cooperative thrift

Q31

Which of the following not appropriate in calculating national income figures?

A

Output method

B

Income method

C

Expenditure method

D

E

Depreciation method

Q32

Into which of these organisations would you classify the International Monetary Fund (IMF)?

A

Political Organisation

B

C

Financial Organisation

D

Social Organisation

E

Commercial Organisation

Q33

P = population, GNP = Gross National Product,  GDP = Gross Domestic Product, NI = National Income. From the above, the formula for calculating Real per Capital income is

A

N I/P

B

GDP/P

C

P/GDP

D

GNP/P

E

P/GNP