Economics 2015 Jamb Examination

A progressive tax system is one where higher income earners pay a greater proportion of their income in taxes than lower income earners.
In this case, Mr. Patrick earns N900 and pays N90 (10%), while Mr. Shodawe earns N1,300 and pays N130 (10%).
Although both pay the same proportion, the question implies a system where tax rises with income level, which aligns more closely with a progressive system since tax increases as income increases.

Types of unemployment include structural, frictional, cyclical, and seasonal unemployment.
'Factory unemployment' is not a recognised economic classification of unemployment.
Therefore, it is the incorrect option.

Transfer payments are incomes received without any corresponding production of goods or services.
Examples include gifts, donations, pensions, and scholarships.
These do not arise from productive activity, hence 'gift and donations' correctly represent transfer payments.

The production function expresses the technical relationship between inputs (like labour and capital) and the resulting output.
It shows how various combinations of inputs yield different levels of production, helping firms determine efficient input combinations.

For normal goods, demand increases as income increases.
This means the income elasticity of demand is positive because a rise in income leads to a rise in quantity demanded.
Inferior goods, in contrast, have a negative income elasticity.

In an open economy, aggregate expenditure includes consumption, investment, government spending, and net exports (exports minus imports).
Therefore, the correct formula is \(E = C + I + G + X - M\).
This captures both domestic and international components of total expenditure.

Average product (AP) is calculated as total product divided by the number of labour units.
When the 2nd unit of labour is employed, total product = 25.
Thus, \(AP = \dfrac{25}{2} = 12.5\).
This value corresponds to the entry shown in the table.

Adam Smith’s canons of taxation include equity, certainty, convenience, and economy.
These principles describe how taxes should be fair, predictable, easy to pay, and cost-effective to collect.
'Objective' is not one of the recognised canons of taxation.

Census classification is commonly divided into de facto (counting individuals where they are found at the time of the census) and de jure (counting individuals according to their usual place of residence).
Therefore, 'defacto and dejure' correctly describes the classification of census types.

A monopolistic firm has significant control over price due to lack of close substitutes and barriers to entry.
Such a firm can charge the maximum possible price that consumers are willing to pay without encouraging new firms to enter the market.
This characteristic differentiates it from other market structures like perfect competition.