JAMB Economics Past Questions & Answers - Page 83

A money market can be defined as a market for short-term loans. The market consists of institutions or individuals who either have money to lend or wish to borrow on a short-term basis.

The law of diminishing marginal utility states that the Satisfaction derived from consuming successive units of a commodity will diminish as the total consumption of the commodity increases. In other words, the total utility increases as more of a commodity is consumed but increases at a diminishing rate.

There is an increase in the quantity supplied if the quantity supplied increases as a result of an
increase in price of the commodity.

From the graph, an increase in the price of the commodity from p1 to p2 brought about a
corresponding increase in quantity supplied from q1 to q2.

Economic growth is the process by which the productive capacity of an economy increase over a given period, leading to a rise in the level of the national income.
Gross domestic product is the total market value of all goods and services produced by a country in a specific time period typically a year. This includes earnings from foreign investments.

GDP = Consumption +Government +investment +Export − Imports
GDP is considered the broadest indicator of economic growth because GDP represent the market value of all goods and services produced by the economy during the given period including personal consumption, government purchase, private inventories, paid in construction cost and the foreign trade balance (export added, import are subtracted).
There are other indicators of economic growth such as; Consumer Price Index (CPI), Producer Price Index (PPI), Consumer Confidence Index (CCI), Money supply, Employment and others. However, High tax rate, Technology Development and High interest rate are not a part of the list.

No explanation has been provided for this answer.