Question on: JAMB Economics - 2024
The comparison of the standard of living between Nigeria and Ghana is best done through the use of
A
gross National incomes
B
per capita income
C
Net National income
D
Net disposable income
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Correct Option: B
The standard of living between two countries is best compared using per capita income.
- Per capita income: Calculated by dividing a country's national income by its population. This gives an average income per person, which is a good indicator of the standard of living.
- Gross National Income (GNI): A country's total income. While useful, it doesn't account for population size.
- Net National Income: GNI minus depreciation. Important, but it doesn't directly reflect the standard of living.
- Net disposable income: The income an individual has available to spend or save after taxes. It's relevant but not the best for country-to-country comparison.
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