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JAMB Economics 1991 Question 48

Question 48

National Income

If W stands for wages/salaries, P for profit, R for interest and Z for rent on land and real estate, then national income is

  1. A.W − P − R − Z
  2. B.W + P + Z − R
  3. C.P − R − Z + W
  4. D.W + P + R + Z
Show the answer and explanation

Answer: D (W + P + R + Z)

Explanation

By the income method, national income is the sum of all factor incomes: wages + profit + interest + rent.