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

Equally distribute national income among

citizens B. Determine the total population C. Compare population growth among nations D. Estimate per capita
income
2. A good measure of the standard of living usually used for international comparison is A. Gross national income
(GNI) B. Gross national product (GNP) C. Gross domestic product (GDP) D. Per capital income (PCI)
3. The production within domestic territory of a country is called the _____ A. Net national product
B. Gross domestic product C. Net income D. Disposable income
4. The value of the total output produced within Nigeria by all residents (citizens and non-citizens) is referred to as
the? A. Gross national product B. Disposable income C. National income D. Gross domestic product
5. Disposable income is total income A. Less tax B. Divided by tax C. Plus tax D. Multiplied by tax
6. Disposable income equals A. Personal income less business profits B. Personal income minus taxes and subsidies
C. National income less borrowing from abroad D. Personal income less taxes plus subsidies
7. 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
8. In an open economy, the GNP is measured as A. C + 1 + G+(X-M) B. C + 1 + G C. C + 1 + G + X D. C + 1 + G +
M
9. If C stands for consumption expenditure, I for investment, X for exports, and M for imports, then national income
is? A. C + I + X + M B. C + I +X – M C. C + I - X + M D. C + I + X
10. The following are Methods of measuring National Income of a country EXCEPT; ? A. Expenditure method
B. Consumption method C. Input Method D. Output method
11. Which of the following is NOT include in measuring national income by the income approach? A. Wages and
salaries of public servant B. Student grants and scholarship C. Profit of companies D. Income earned by self
employed persons such as lawyers E. Rents on property
12. 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
13. What does the accelerator principles state? A. Consumption is a function of the rate of change of income B.
Income is a function of the rate of change of investment C. Investment is a function of the rate of change of
income D. Investment is a function of the rate of interest
14. Which of the following is not a component of national income at factor cost? A. Wages earned by doctor
B. Rent paid to landlords C. Indirect tax D. Undistributed company profits E. Interest on loan
15. The difference between the Gross Domestic Product and the Gross National Product is? A. Allowance for total
depreciation B. Total interest payments C. Total tax and interest payments D. Net income from aboard
16. Use the following information to answer the next 2 questions Total of all expenditure incurred during the year
80,000m Indirect taxes on goods and services 8,000m and Capital consumption 6,000m
National income is__________ A. ₤ 74,000m B. ₤ 66,000m C. ₤ 60,000m D. ₤ 14,000m
17. Gross national expenditure at factor cost is_________ A. ₤ 88,000 B. ₤ 82,000 C. ₤ 74,000 D. ₤ 72,000
18. Given a consumption function C = 10 + 0.6Y, determine the value of C if Y is 20 A. 36.60 B. 22.00 C. 30.60
D. 26.00
19. The income of an individual increases from N150 to N250 and his consumption rate increases from N100 to N150.
Calculate the Marginal Propensity to Consume A. 2 B. 0.4 C. 1 D. 0.5
20. If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to
consume is? A. 0.20 B. 0.80 C. 1.25 D. 2.00
21. If the marginal propensity to save is 0.8, calculate the multiplier? A. 1.25 B. 5.00 C. 1.30 D. 2.25
22. In its simplified form, the circular flow of income concept refers to the? A. Real flow in goods and services
between the product and factor markets B. Monetary payment for goods and services produced by individual firms
C. Transactions in goods and services and payment for such transactions between individual firms and
households. D. Money flows associated with transactions between individual firms and households
23. The diagram illustrates A. The circular flow of income B. Gross national product plus depreciation C. Incomes of
the private sector D. The profit of business enterprises
24. In the diagram I refers to the calculation of national income through the A. Expenditure approach B. Input - Output
approach C. Income approach D. Output approach

25. The interdependence between households and business enterprises illustrated in the figure is known as
A. Market interaction B. Cash flow C. Circular flow of income D. Supply and demand for goods and services

26. The flow labelled Y refers to A. Real income B. Factor payment C. Factor inputD. National income