2018 neco economic answer

Economics OBJ:
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1ai )
Qd = 32- 1/ 2p
When p is 6
Qd = 32- 1x6/ 2
Qd = 64- 6/ 2
Qd = 58/ 2
Qd = 29

1aii )
Qd = 32- 1/ 2p
When p is12
Qd = 32- 12/ 2
Qd = 64- 12/ 2
Qd = 52/ 2
Qd = 26

1aiii )
Qd = 32- 1/ 2p
When p is 20
Qd = 32- 20/ 2
Qd = 64- 20/ 2
Qd = 44/ 2
Qd = 22

1aiv )
Qd = 32- 1/ 2p
When p is 27
Qd = 32- 27/ 2
Qd = 32- 27/ 2
Qd = 64- 27/ 2
Qd = 37/ 2
Qd = 18. 5

1av )
Qd = 32- 1/ 2p
When p is 32
Qd = 32- 32/ 2
Qd = 64- 32/ 2
Qd = 32/ 2
Qd = 16

1b)
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1c )
i ) The price
ii) The price of other commodities
iii ) Income of the consumers
iv ) Taxation
v) Population
vi ) Change in taste of consumer
vii) Weather And Climate
viii ) Advertisement
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SECTION B ( Answer any 4 Questions )
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3a
Production is the process of transforming inputs ( raw materials ) into finished products and the distribution of the products in order to satisfy human wants and to earn a living

3b)
i ) Availability of Natural Resources : The volume production depends on the quantity and quality of the natural resources available in a country . If a country has large Deposits of natural resources like fertile soil , perennial rivers , extensive forests , long sea coasts, rich minerals etc , volume of production will be high . The larger the availability of resources , the larger will be the volume .

ii) Availability of capital: Capital is an important factor in determining the volume of production . Capital includes both fixed capital and variable capital like machinery, buildings . raw materials , electricity etc . The capital depends on the level of savings and investment and banking facilities .

iii ) Technology : Technology is another determinant of the volume of production . If the people possess technical knowledge , education and training , they can produce diverse goods . They can make inventions and adopt latest technology for producing goods and services . Besides , they also increase the quantity and quality of goods . Hence the nature of technology influences the volume of manufacturing or production .

iv ) Factors of production : Another determinant of Volume of manufacturing or production is the factors of production . Factors of production comprise labor , capital and organization . The quantity and quality will influence the volume of production . If these are plenty , then production of goods on large scale is possible .
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4a )
Mobility of Labor : - This can be define as the ease with which labout can move from one geographical area to another , or from one occupation to another . labour is said to be movable when workers will find it easy to move from one geographical area to another or to change jobs .

4b)
i ) Cost and length of training : - Some professions are costly to train in terms of time and money , e .g the medical profession .

ii) Ability or aptitude : - Some jobs require natural ability or talents and those that are not gifted can not fit into such jobs e .g . musician .

iii ) Wage rate : - Labour will move if there is a wide margin in salaries but if it is low , labour may not move .

iv ) Condition of service: - Apart from Salary , the conditions of service in a working place e . g. bonuses , overtime , staff bus , will encourage labour not to move .

v) Political Instability / Religion: - Where there is political instability or religion , it will be very difficult for labour to move .
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6a )
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer ( an individual or other legal entity ) by a governmental organization in order to fund various public expenditures .

6b)
I ) They reduce savings : - When tax is removed from one 's income , savings may become very difficult .

ii) They discourage investment : - High tax on individual and corporate bodies discourage potential investor from investment .

iii ) They prone to evasions: - Direct texes are usually prone to evasion by many income earners .

iv ) They reduce purchasing power : - When tax is imposed on the income of a workers, the balance may be small thereby reducing the purchasing power of such income earner .
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7a ) Money is anything that ja generally acceptable as a medium of exchange and in the settlement of debts . It can also be define as anything that is generally acceptable as a means of payment

7b)
I ) Transactionary motive : - People desire to keep or hold money for day to dag transactions or current expenditure . Household needs to hold money in order to cater for the interval between the receipt of income and their expenditure .

ii) Precautionary motives : - This is when people demand for money in order to meet up with unforseen circumstances or unexpected expenditure . These may include sickness , unexpected visitor etc

iii ) Speculative motive : - this motive is specifically a business motive and refers to the desire to hold cash balance in order to embark on speculative dealings in the bond market . The demand to hold money for specific is elastic
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8a )
National Budget is also called A government budget . It is an annual financial statement presenting the government 's proposed revenues and spending for a financial year that is often passed by the legislature , approved by the chief executive or president and presented by the Finance Minister to the nation.

8b)
Balanced budget is a situation in financial planning or the budgeting process where total revenues are equal to or greater than total expenses . A budget can be considered balanced in hindsight after a full year 's worth of revenues and expenses have been incurred and recorded .

8c )
Budget surplus is a period when income or receipts exceed outlays or expenditures . A budget surplus often refers to the financial states of government . They provide enough capital to pay for all domestic production .

8d)
Budget deficit is a situation in which imports of goods , services , investment income and transfers exceed the exports of goods , services , investment income and transfers must borrow from other countries to pay for its imports . In the short -term , that fuels the country 's economic growth .
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12a )
Economic growth may be defined as the process by which the productive capacity of an economy increases over a given period , leading to a rise in the level of the national income .

12b )
i ) Lack of skilled manpower : - The manpower development in developing countries is unusually very low . This affect economic development .

ii) Low level of technology: - Majority of the development nations have low level of technology, which impedes economic development .

iii ) Leadership problems : - Majority of the leaders in developing countries do not direct well the human and natural resources of such countries and this leads to low economic development .

iv ) High level of illiteracy : - Majority of the people in developing countries are illiterates , i . e . they cannot read and write. This eventually leads to low economic development .
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