JAMB Economics 2017 Paper

Concept:Economic growth is best measured by an increase in a country’s total production over time.Explanation:Economic growth means an economy is producing more goods and services than before.Gross domestic product ($\mathrm{GDP}$) is the total market value of all final goods and services produced in a country within a given period, usually a year.The $\mathrm{GDP}$ equation is:$$\mathrm{GDP} = \text{Consumption} + \text{Investment} + \text{Government Spending} + (\text{Exports} - \text{Imports})$$A high $\mathrm{GDP}$ signals a higher level of national output, which is a direct indicator of economic growth.High tax rates and high interest rates are policy instruments, not measures of growth.Technology development may help growth, but it is not a standard indicator of economic growth.Thus, among the options, only high gross domestic product directly indicates economic growth.Answer:C. High gross domestic product