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 KCSE business studies paper 2 revision questions and answers set 1

Higher national income may not necessarily mean better welfare for citizens of a country.Discuss

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Answer Text:
-The income distribution could have been unequal with more at the hands of a few
-Incorrect statistics may have been used giving the wrong figure.
-Higher income may have cost the labour leisure time
and working under difficult environment
-The income could have been realized through illegal activities
-The effect of inflation may not be shown in the national income statistics yet it affects the purchasing power hence welfare.


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