Economics Practice Test – National Income Accounting (Questions with Answers and Explanations)

The marginal propensity to consume measures the relationship between ______ (JAMB 2018)

A. Consumption and income
B. Consumption
C. Change in consumption and income
D. Change in consumption and respective change in income

If the marginal propensity to save is 0.8, calculate the multiplier. (JAMB 2016)

The best index for international comparison of standard of living is the _____ (JAMB 2019)

A. Gross National Product
B. Net National Income
C. Per Capita Income
D. Gross National Income

The effect of an expansionary monetary system above full employment level is _____ (JAMB 2018)

A. Deflationary
B. Inflationary
C. Balanced
D. Deficit budget

One of the major uses of national income statistics in Nigeria is to _____ (JAMB 2016)

A. equally distribute national income among citizens
B. determine the total population
C. compare population growth among nations
D. estimate per capita income.