2019 - JAMB Economics Past Questions and Answers - page 2

where N = Number of observation and X is observations
Therefore;

Inductive reasoning from basic facts of an event because makes use of mathematical & statistical computations, it draws conclusion. 

where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)

The money market is in equilibrium when the demand and supply of money are equal i.e L= u

The use to increase interest rate and reduce investment so as to control inflation in an economy is known as Restrictive Monetary policy or also known as contractionary Monetary policy. 

A scale of production set the size of plant, the number of plants installed and the technique of product is known as Economics of scale. In the short-run, there is no time for the plant to expand while in the long-run, there is enough time for the firm to expand its size of plant which makes the AC α MC shape flatter.

What shows the cost per unit of any chosen output is the Average cost 

From what is seen in diagram, the shape is near the bend i.e Curvature at point A and point B (point of Origin).

Consistency and transitivity of choice