2015 - JAMB Economics Past Questions and Answers - page 5

A proportional tax is a flat rate payment of tax. The same level of tax is paid irrespective of the level of income or wealth.

The curve labeled III illustrates a regressive tax system. In a regressive tax system, the tax rate decreases as the income increases. This means that lower-income earners pay a higher percentage of their income in taxes compared to higher-income earners.

Excess demand without a corresponding increase in supply causes inflation.

Term of trade is the comparison between visible and invisible export and visible and invisible import expresses in price. The ratio of export to import. It could be expressed as
(price index of export ÷ price index of import) × 100
Which can be dented as (px ÷pm) × 100

Here's how to calculate the Marginal Propensity to Consume (MPC): 1. **Calculate the change in consumption:** * Change in Consumption = New Consumption - Old Consumption * Change in Consumption = N150 - N100 = N50 2. **Calculate the change in income:** * Change in Income = New Income - Old Income * Change in Income = N250 - N150 = N100 3. **Calculate the MPC:** * MPC = (Change in Consumption) / (Change in Income) * MPC = N50 / N100 = 0.5

Macro Economics studies the fluctuations in the levels of large aggregates and way to prevent the fluctuation.

The range of a dataset is calculated by subtracting the smallest value from the largest value. 1. **Identify the largest value:** In the given data (9, 15, 6, 20, 24, 18, 12, 8, 20, 10, 5), the largest value is 24. 2. **Identify the smallest value:** The smallest value in the dataset is 5. 3. **Calculate the range:** Range = Largest value - Smallest value = 24 - 5 = 19.