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JAMB Economics 1982 Question 27

Question 27

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 employment?

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

Answer: E (4.1%)

Explanation

Taking each sector's employment to grow with its output, weight the growth rates by employment shares: 0.7 × 3 + 0.1 × 10 + 0.2 × 5 = 2.1 + 1 + 1 = 4.1%.