JAMB 2016 Economics · Question 14
One of the major uses of national income statistics in Nigeria is to
Options
- A.Equally distribute national income among citizens
- B.Determine the total population
- C.Compare population growth among nations
- 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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