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JAMB Economics 1979 Question 47

Question 47

National Income

The predominance of non-working wives and housemaids in West Africa

  1. A.will understate the National Income of the countries
  2. B.will overstate the National Income of the countries
  3. C.will lead to constant per capita income over the years
  4. D.will lead to balance of payment deficits
  5. E.will cause unfavourable terms of trade.
Show the answer and explanation

Answer: A (will understate the National Income of the countries)

Explanation

Unpaid housework is not counted in national income, so a lot of real output is left out and income is understated.