Which of the following statements correctly explains why national income figures may not accurately reflect the standard of living in a developing country like Nigeria?

In developing countries like Nigeria, a substantial proportion of economic activity occurs in the subsistence and informal sectors, where goods and services are produced and exchanged without monetary transactions and therefore go unrecorded. This leads to an underestimation of true economic activity and standard of living. Additionally, income inequality means that even if national income is correctly measured, average figures may not reflect the welfare of the majority of citizens.