2019 - JAMB Economics Past Questions and Answers - page 6

Qd = 80 - 2P
When P = 3
Qd = 80 - 2(3)
Qd = 80 - 6
Qd = 74

Mean (Arithmetic mean), median, mode, geometric mean and Harmonic mean are known as central tendency or measure of location. 

A loan that is made for a very short period for a few days only for duration of a week is known as money at call or at short notice. 

Money market is a market for short-term loans.

A contractionary monetary policy is used to control inflation, to stabilise the price level exchange rate and achieve equilibrium in the balance of payment and also promote economy development. It is used to balance payment surplus and there is increase in interest rate or cash reserve ratio thereby reducing investment and output. 

Total variable costs also known as variable cost. TVC is the cost that varies or changes with the level of output.

TVC = 6000 + 800 + 300
TVC = ₦7100

MC cuts the AC curve at the minimum or lowest point at B, also MC is equal to AC at that point.

From the diagram, the consumer budgeted TUX while the market price is TUVW, therefore, consumer surplus is TUX - TUVW which is equal to VWX.

Consumer surplus is the difference between what a consumer budgeted to have a commodity and the actual amount he paid to have the commodity.

The power that goods and services have to exchange other goods and services is known as value.The value of a commodity rely on the satisfaction it can provide and the amount of labour used in production.