JAMB 2016 Economics · Question 14

One of the major uses of national income statistics in Nigeria is to

Options

  1. A.Equally distribute national income among citizens
  2. B.Determine the total population
  3. C.Compare population growth among nations
  4. D.Estimate per capita income

Answer: D. Estimate per capita income

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks about a major use of national income statistics, which are figures like GDP, GNP and NNP that measure the total value of goods and services produced in an economy.

Step 2: Explain the concept National income statistics are used to:

  • Measure the level of economic activity and growth
  • Compare living standards over time or between countries
  • Estimate per capita income (national income ÷ population)
  • Guide government planning, budgeting and policy
  • Show how income is distributed across sectors

Step 3: Evaluate each option

  • A. Equally distribute national income among citizens. Wrong. The statistics only measure income. They do not distribute it, and equal distribution is not their purpose.
  • B. Determine the total population. Wrong. Population is determined by a census, not by national income data.
  • C. Compare population growth among nations. Wrong. Population growth is measured with demographic data such as census and birth/death rates. National income data compare output and income, not population growth.
  • D. Estimate per capita income. Correct. Per capita income = National Income ÷ Total Population. It is a direct and major use of national income figures, and it serves as a rough indicator of the average standard of living.

Step 4: Answer The correct option is D. Estimate per capita income.

Tip: When you see "national income statistics", think "per capita income, standard of living, economic growth, and planning". Be careful with options that mention population. Population comes from a census, and national income only becomes "per person" when it is divided by population.

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