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JAMB Economics 1994 Question 43

Question 43

National Income

If national income rises by 6% and population rises by 3%, per capita income will

  1. A.rise by 6 per cent
  2. B.fall by 3 per cent
  3. C.fall by 6 per cent
  4. D.rise by 3 per cent
Show the answer and explanation

Answer: D (rise by 3 per cent)

Explanation

Income per head grows by roughly the growth of income minus the growth of population: 6% − 3% = 3%.