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JAMB Economics 1983 Question 1

Question 1

National Income

Which of the following items is NOT included in measuring national income by the income approach?

  1. A.Wages and salaries of public servants
  2. B.Student grants and scholarships
  3. C.Profits of companies
  4. D.Income earned by self employed persons such as lawyers
  5. E.Rents on property.
Show the answer and explanation

Answer: B (Student grants and scholarships)

Explanation

Grants and scholarships are transfer payments: nothing is produced in return, so they are left out of national income.