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JAMB Economics 2011 Question 28

Question 28

National Income

In national income accounts, an item counted as part of government spending is

  1. A.salaries and wages
  2. B.pension
  3. C.scholarship
  4. D.social welfare.
Show the answer and explanation

Answer: A (salaries and wages)

Explanation

Government spending in national income counts only payments for goods and services, like salaries and wages. Pensions, scholarships and welfare are transfer payments and are left out.