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Which of the following over estimate the value of national income?  

Economics
JAMB 2025

Which of the following over estimate the value of national income?

 

  • A. Wrong timing of computation
  • B. Changes of prices of goods within the year
  • C. Double counting
  • D. Incomplete statistical data
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Correct Answer: Option C
Explanation

Double counting overestimates the value of national income. This happens when the same good or service is counted more than
once in the calculation of the Gross Domestic Product (GDP). For example, if a farmer sells wheat to a baker and the baker sells
bread to a customer, counting both the sale of wheat and the sale of bread would be double counting, as the value of the wheat is
already included in the value of the bread.


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