Economics 2017 Jamb Examination

Technology development increases productive capacity and improves efficiency in an economy.
As technology advances, output can rise without requiring a proportionate increase in inputs.
This leads to sustained economic growth driven by innovation, improved production methods, and higher competitiveness.

The graph shows a movement along the supply curve rather than a shift of the curve itself.
An increase in quantity supplied occurs when price increases and producers are willing to offer more units for sale, represented as an upward movement along the existing supply curve.
No new supply curve is drawn, indicating it is not a change in supply but a change in quantity supplied.

The law explains consumer behaviour when consuming successive units of a commodity.
Marginal utility decreases because each additional unit provides less satisfaction than the previous one.
This concept underlies the downward slope of the demand curve but is itself specifically about declining satisfaction from additional units.

A family-run business usually involves two or more members jointly owning and managing the business.
This fits the structure of a partnership, where ownership, responsibilities, and profits are shared among the partners.
A sole proprietorship requires a single owner, which does not apply to a family-managed firm.

Land is a naturally fixed resource with a supply that cannot be increased regardless of price changes.
Because of this fixed quantity, the supply of land is perfectly inelastic.
Other factors such as labour, capital, and wages can vary with economic conditions, unlike land.

A deficit budget occurs when government expenditure exceeds government revenue.
This means the government intentionally spends more, often to stimulate economic activity or finance development projects.
It therefore leads to an increase in total government expenditure.

The fundamental economic questions—what to produce, how to produce, and for whom to produce—depend entirely on the type of economic system in operation.
For example, a command economy relies on government decisions, while a market economy relies on price and demand.
Thus, it is the system itself that determines who answers these questions.

National income is measured using three standard methods: the output method, the income (input) method, and the expenditure method.
The consumption method is not recognised as a formal approach to measuring national income.
Consumption is a component of the expenditure method, not a standalone method.

Gross domestic product (GDP) measures the total value of goods and services produced within a country's domestic boundaries in a given period.
It includes production by both residents and non-residents within the territory.
It is therefore the correct term for domestic production.