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JAMB Economics 1982 Question 26

Question 26

National Income

For questions 26 and 27, consider the information below about the Nigerian economy.
Sector | Share of gross national product (GNP) | Share of total employment | Growth rate of output
All agriculture | 40% | 70% | 3%
Industry and mining | 30% | 10% | 10%
Trade and services | 30% | 20% | 5%
What is the growth rate of GNP?

  1. A.18%
  2. B.10%
  3. C.6.7%
  4. D.5.7%
  5. E.4.1%
Show the answer and explanation

Answer: D (5.7%)

Explanation

Weight each sector's growth by its share of GNP: 0.4 × 3 + 0.3 × 10 + 0.3 × 5 = 1.2 + 3 + 1.5 = 5.7%.