JAMB Economics 2022 Objective — Question 14
Question 14 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation.
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14. If an economy is growing at an annual rate of 10% and 6% of it is known to be due to improvements in labour and capital combined, the balance of 4% is usually due to
- A. (A) inflation
- B. (B) deflation
- C. (C) Level of human capitalCorrect
- D. (D) government policies
Explanation
GDP growth is usually caused by a combination of factors such as investment, technical know-how and resource expansion. Once labour and capital have been accounted for, the remaining growth is most likely a result of the level of human capital (skills, education, technology).
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