Question on: JAMB Economics - 2024
The following determine the level of consumption EXCEPT
A
level of income
B
the rate of taxes paid
C
savings
D
the political climate
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Correct Option: D
The level of consumption is influenced by several factors, including:
- Level of income: Higher income generally leads to higher consumption.
- The rate of taxes paid: Taxes reduce disposable income, thereby affecting consumption levels.
- Savings: Savings represent a portion of income not spent on consumption.
The political climate, while it can impact the economy in general, does not directly determine the level of consumption. It may influence consumer confidence, but it is not a direct determinant like income or taxes.
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