All questions of National Income for JAMB Exam

Because it is used for immediate consumption .
it does not required any further processing

True, because it is measured over a period of time.

True: It can happen when NFIA is negative i.e., factor income paid to abroad is more than factor income received from abroad. 

C

Question hi answer hai iska.....'Final goods' -Means No Further production is required....it is ready for Consumption like-,Milk is a final good if it is purchased to drink,Bicycle that is sold to consumer is a final good or consumer goods.

Yes, it is possible for GDP to be higher than GNP and it is also possible for GNP to be higher than GDP. GNP greater than GDP is best for a country because it means that the population of that country will have a greater total income (i.e. total output) than if GDP was greater than GNP.

Explanation:



Factor income is the income that is earned through factors of production such as land, labor, capital, and enterprise. Here, we need to identify the factor income among the given options.



a) Royalty: Royalty is the amount paid to the owner of an asset for its use. It is not a factor income as it is not earned through any factor of production.



b) Rent: Rent is the payment made to the owner of land or any other asset for its use. It is a factor income as it is earned through land, which is a factor of production.



c) Subsidies: Subsidies are the financial assistance provided by the government to promote an industry or a product. It is not a factor payment as it is not earned through any factor of production.



d) Tax: Tax is a financial charge imposed by the government on individuals or businesses for the income earned or goods and services consumed. It is not a factor income as it is not earned through any factor of production.



Therefore, the correct answer is option B, Rent is a factor income.

Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.

Former flow happens in factor market while latter flow happens in goods market. Money flow refers to the flow of factor payments from firms to households and payment for goods and services by households to firms.

Intermediate goods or producer goods or semi-finished products are goods , such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them.

Policies and their impact on the economyc)Microeconomics focuses on individual and small group behavior and decision-making related to the allocation of resourcesd)Microeconomics focuses on overall economic indicators such as GDP and inflation rates.

Answer: c) Microeconomics focuses on individual and small group behavior and decision-making related to the allocation of resources.

Explanation: Microeconomics is a branch of economics that examines the behavior of individuals and firms in making decisions regarding the allocation of scarce resources. It focuses on the study of small economic units such as individuals, households, and firms. In contrast, macroeconomics deals with the overall performance of the economy and its key indicators such as GDP, inflation, and unemployment.

Consumer goods are ultimately consumed, rather than used in the production of another good. For example, a microwave oven or a bicycle that is sold to a consumer is a final good or consumer good, but the components that are sold to be used in those goods are intermediate goods.

As households are the provider of Fops(factors of production) and firms i.e producers in return provide services and final products..They both are complimentary to each others...Households spend their money on goods and services rendered by producers/firms and producers spend on FOPs like land,labour,capital,entrepreneurship skills in change of wages,rent,interest and profit
This is two sector economy..where as three and four sector economy has govt.(G) and foreign exhange(X-M)
hope this will help you

Net National Income (NNI)

Definition:
Net National Income (NNI) measures the total income earned by individuals and businesses within a country's borders in a given period.

Calculation:
NNI is calculated by subtracting depreciation from the Gross National Product (GNP). It represents the total amount of goods and services produced within a country in a specific period after deducting depreciation.

Importance:
1. Reflects the overall economic performance of a country.
2. Helps in comparing the economic growth of different countries.
3. Provides insights into the distribution of income among individuals and businesses.

Difference from other measures:
NNI differs from GDP and GNP as it takes into account depreciation, which is the decrease in the value of goods and services over time. This adjustment provides a more accurate representation of the income generated within a country.
In conclusion, Net National Income is an essential economic indicator that measures the total income earned by individuals and businesses within a country's borders. It accounts for depreciation and provides valuable insights into the economic performance and income distribution of a nation.

Milk and Bread are examples of Non-durable good. Non-durable gods are those goods which are used-up in a single act of consumption. Bread and milk are used-up in a single act of consumption. The same milk or bread cannot be used again.

' wages
c)Corporate profits
d)Interest on loans

b)Employers' wages are an example of factor payments. Factor payments refer to payments made to the factors of production, which include labor, capital, land, and entrepreneurship. Employers' wages are payments made to the factor of production, labor, for their contribution to the production process.

D

Explanation:
The correct question formation to ask about the time of the train leaving is "What time does the train leave?" Here is an explanation of why the other options are incorrect:

A) "What time the train leaves?" This sentence is not a complete question because it is missing the auxiliary verb "does." In English, we use auxiliary verbs to form questions in the present tense. Without "does," the sentence is a statement.

B) "Leaves the train?" This sentence is not a question at all. It is a sentence fragment. It is missing the subject "the train" and the auxiliary verb "does" to form a complete question.

C) "Is the train leaving?" This sentence is asking if the train is in the process of leaving right now. It is not asking for a specific time when the train will leave in the future.

D) "Does the train leave?" This is the correct way to form the question. It uses the auxiliary verb "does" to form the question in the present tense, and "leave" is the bare infinitive form of the verb. The sentence is asking for the specific time when the train will leave in the future.

Therefore, the correct option is 'D' - "What time does the train leave?"

B)Households and firms
c)International sector or rest of the world

The Relationship Between Domestic Factor Income and National Income

To understand the relationship between domestic factor income and national income, we need to first define these terms.

Domestic Factor Income: Domestic factor income refers to the income earned by domestic factors of production, such as labor and capital, within a country's borders. It includes wages, salaries, rent, and profits earned by individuals and businesses within the domestic economy.

National Income: National income, on the other hand, is the total income earned by all factors of production, both domestic and foreign, within a country's borders. It includes domestic factor income as well as net factor income from abroad.

Net Factor Income from Abroad: Net factor income from abroad is the difference between the income earned by domestic factors of production in foreign countries and the income earned by foreign factors of production within the domestic economy. It includes wages, salaries, rent, and profits earned by domestic factors abroad, minus the income earned by foreign factors in the domestic economy.

The Role of Net Factor Income from Abroad in Calculating National Income:

Now, let's consider the question at hand - what must be added to domestic factor income to obtain national income? The correct answer is option 'A', which is net factor income earned from abroad.

Net factor income from abroad is an important component of national income as it represents the income earned by domestic factors of production in foreign countries. By including this income in the calculation of national income, we get a more comprehensive measure of the total income generated within a country's borders.

Including net factor income from abroad is necessary because factors of production, such as labor and capital, can also earn income outside of the domestic economy. For example, a domestic company may have subsidiaries or branches in foreign countries where it earns profits. Similarly, domestic workers may find employment opportunities abroad and earn wages there.

By adding net factor income from abroad to domestic factor income, we capture the income earned by domestic factors both within the domestic economy and abroad. This provides a more accurate measure of the total income generated by a country's factors of production.

Conclusion:

In conclusion, when calculating national income, we need to add net factor income from abroad to domestic factor income. This is because net factor income from abroad represents the income earned by domestic factors of production in foreign countries, which is an important component of a country's total income. Including this income provides a more comprehensive measure of national income and helps capture the income generated by a country's factors of production both domestically and abroad.

The correct answer is option 'A', cry. When babies are hungry, they typically cry to communicate their needs. This is their way of expressing discomfort or seeking attention from their caregivers.

Explanation:
Babies have limited means of communication, especially in the early stages of development. Crying is one of the primary ways they express their needs. When a baby is hungry, they may cry to indicate their hunger and request to be fed. This cry is often distinctive and easily recognizable by parents and caregivers.

Crying is a natural instinct in babies and serves as a form of communication. It is their way of alerting adults that something is wrong or that they need something. Hunger is one of the most common reasons why babies cry. It is important for parents and caregivers to be responsive to a baby's cries and attend to their needs promptly.

Other options like 'cries,' 'cried,' and 'are crying' are incorrect because they do not match the subject-verb agreement. In this sentence, the subject is 'babies,' which is plural, so the correct verb form to use is 'cry,' which is the plural form. 'Cries' is the singular form of the verb and is not suitable in this context. 'Cried' is the past tense form and does not match the present tense requirement of the sentence. 'Are crying' is the present continuous form and also does not match the present tense requirement.

In conclusion, when babies are hungry, they cry to communicate their needs. Crying is their way of alerting their caregivers and seeking attention. It is important for parents and caregivers to respond to a baby's cries promptly and attend to their needs, especially when they are hungry.