2015 - JAMB Economics Past Questions and Answers - page 4

A tax system is considered: * **Proportional:** When the percentage of income paid as tax remains constant as income increases. * **Progressive:** When the percentage of income paid as tax increases as income increases. * **Regressive:** When the percentage of income paid as tax decreases as income increases. In this case: * Mr. Patrick's tax rate: (N90 / N900) \* 100% = 10% * Mr. Shodawe's tax rate: (N130 / N1300) \* 100% = 10% Since both individuals pay the same percentage of their income as tax, the tax system is proportional.

MP = Δ TP ÷ Δ L
= (TP2 – TP1) ÷ L2 – L1
= (55 – 48 ) ÷ (5 – 4) = 7 ÷ 1
= 7

mortgage bank is a financial institution which grant loans for building purpose.

The types of specialization are product, process, geographical/territorial specialization and specialization by sex or gender. Manager specialization can be categorized under process specialization because it is a situation whereby worker are specialized on a particular production process.

if demand and supply are equal, it brings the market to the point of equilibrium because equilibrium price is the price where quantity demanded and quantity supplied are equal.

Here's why the answer is B: * **Understanding Demand Curve Shifts:** A shift to the right in the demand curve indicates an increase in demand. This means that, at any given price, consumers are now willing to buy more of the product. * **Analyzing the Options:** * **A. a rise in price of Bournvita:** This would cause a movement *along* the demand curve (a decrease in quantity demanded), not a shift of the curve itself. * **B. an increase in income:** Bournvita is a normal good. An increase in income typically leads to an increase in the demand for normal goods. This shifts the demand curve to the right. * **C. a tax on cocoa producer:** This would affect the supply of