1. National Income statistics may overstate the level of standard of living in a country if:

1. The average length of the working week has decreased
2. Government spending on low income housing is high
3. Inflation is low
4. Government spending on military goods is high
5. An example of transfer payments is:
6. The cost of electric power sold by power services company limited
7. The postman's wage
8. Payments to the Jamaica Public Service Company for electricity supplied
9. Unemployment compensation

1. Which of the following is NOT an important use to which National income statistics is put?

1. Provides a basis for the application of policies designed to improve the economy's performance.
2. Permits measurement of the economic efficiency of the economy.
3. Makes possible an estimate of output of final goods and services in an economy.
4. Enables the economist to chart the growth or decline of the economy over a period of time.