%100 VERIFIED 2016 NECO ECONOMICS OBJ AND ESSAY ANSWERS

Tuesday 28th June
4083/4082
Paper III & II :Objective & Essay - Economics
3Hrs

Econs obj

1-10:EBE-CCEBAE 11-20:EEAAEBADEE
21-30:CCCCCDBCDC
31-40:DBDEAECBEE
41-50:CBADBE-EDB
51-60:DCC-BDCCBA

5a
Supply may be defined as the quantity of a given
commodity or service which a producer is
willing,able and ready to offer for sale over a
period of time at particular market price


5bi)

ii)

6a
Tax may be defined as a compulsory contribution
imposed by a government authority on
goods,individuals,corporate bodies, etc, irrespective
of the exact amount of service rendered to the tax
payer in return, and not imposed as a penalty for
any legal offence


6b
i)
Insincerity of the Collectors-Majority of them are
after their personal purse and are ready to receive
bribe from tax-payers no matter how small in place of the actual amount they are supposed to
pay


ii
False Declaration of Income-Many workers
especially those in private firms do not declare
their real incomes


iii)Improper Book of Account-Majority of the
traders keep improper or no book of account at all



Iv
Tax Evasion-Many people do not fulfil their civic
responsibilities by paying tax as and when due



v
Mismanagement of Government fund-
Embezzlement and misappropriation of government
fund by those at the corridors of power,may kill
people's enthusiasm to fulfil their civic obligation
of paying tax


 1a)Qd=40-2p ; Qs=10+4p
Qd=40-2p
When P=1
Qd=40-2(1)
Qd=40-2
Qd=38

Qd=40-2p
When P=3
Qd=40-2(3)
Qd=40-6
Qd=34

Qd=40-2p
When P=5
Qd=40-2(5)
Qd=40-10
Qd=30

Qd=40-2p
When P=7
Qd=40-2(7)
Qd=40-14
Qd=26

Qd=40-2p
When P=9
Qd=40-2(9)
Qd=40-18
Qd=22
===============
Qs=10+4p
When P=1
Qs=10+4(1)
Qs=10+4
Qs=14

Qs=10+4p
When P=3
Qs=10+4(3)
Qs=10+12
Qs=22

Qs=10+4p
When P=5
Qs=10+4(5)
Qs=10+20
Qs=30

Qs=10+4p
When P=7
Qs=10+4(7)
Qs=10+28
Qs=38

Qs=10+4p
When P=9
Qs=10+4(9)
Qs=10+36
Qs=46

 4i)Marginal product is the additional output that a firm brought about as a result of the employment of an additional unit of variable factor

4ii)Thd law of diminishing returns states that as sucessive units of a variable factor (e.g. labour or capital) is applied to a given fixed factor(e.g. land), output will increase at first but it will get to a point at which the addition of one more unit of the variable factor will result in less additional units of output.


4iii)-Proper combination of factors of production-The law of diminishing returns helps the entrepreneur to combine properly the factors of production to prevent watage
- Changes in Scale of production: The law of diminishing returns helps entrepreneurs to change the scale of production throught the variation of the quantities of all input.
- It ensures efficiency- As more and more variable factors are added to a fixed factor, it eventually comes to a profitable level and productivity and efficiency are maintained.


 8)-Maintainance of external reserves: The central bank is also responsible for the maintainance of external reserves of the country
-Management of national debt: The central bank is responsible for the management of national debt of the country. It also acts as clearing house for other banks
-Foreign exchange transaction:The central bank holds the foreign reserve of a country, and this helps in enforcing foreign exchange control, which is set up to purchase and sell foreign currencies
-External business: The central bank acts as an agent of the country by relating with other countries and international financial institutions like IMF, World Bank,etc.
-Banker to the government: Central bank is an agent and banker to the government. It controls public account, receives revenue on behalf of the government and makes payment from this account.Central bank also obtains loan on behalf of the government.



7a)DEPENDENCY RATIO:
The dependency ratio is a measure showing the
number of dependents, aged zero to 14 and over
the age of 65, to the total population, aged 15 to
64. It is also referred to as the
dependency ratio." This indicator gives insight
into the amount of people of nonworking age
compared to the number of those of working
age. A high ratio means those of working age, and
the overall economy, face a greater burden in
supporting the aging population. The young
dependency ratio includes those only under 15,
and the elderly dependency ratio focuses on
those over 64. For example, if in a population of
1,000, there are 250 people under the age of 15
and 500 people between the ages of 15 and 64,
the youth dependency ratio is 50%, or 250/500.


7b)DECLINING POPULATION :

Sometimes known as depopulation, declining population is the reduction over time in a region's
population. The decline can be caused by
several factors including sub-replacement
fertility (along with limited immigration), heavy
emigration, disease , famine, and war. History
is replete with examples of large-scale
depopulations. Many wars, for example, have
been accompanied by significant
depopulations. the effects of decline population  are
fewer schools, due to there being fewer
children,
a drop in house prices because more
homes are unoccupied,
fewer new homes being built,
less demand for rented accommodation,
fewer care facilities etc

7c) POPULATION DENSITY :

the number of people living per unit of an
area (e.g. per square mile); the number of
people relative to the space occupied by
them. To determine an area's population density, you
just have to divide an area's total population by
the land area in square miles (or square
kilometers). For example, Canada's population of 33 million,
divided by the land area of 3,559,294 square
miles yields a density of 9.27 people per square
mile.
While this number would seem to indicate that
9.27 people live on each square mile of
Canadian land area

7D)EFFICIENCY OF LABOUR :
The working
capacity of the labour is called his efficiency
being given the same time limit and given the
same type of work. the factors determining efficiency of labour include ;

---EDUCATION :- It is the basic and essential
element which determines the efficiency of
labour. Educated labourer is more efficient as
compared to the illiterate worker.
--- TRAINING AND SKILL :- The modern world
requires highly skilled labourers. A labourer with
sound technical training will be more effective
as compared to a labourer who has no training.
It increases the efficiency of the laboure..
  other factors are : climatic condition,,wages,combination of production factors etc.

9a) Economic growth is an increase in the capacity
of an economy to produce goods and services,
compared from one period of time to another.
9b)

(i)  Human Resource:
Refers to one of the most important
determinant of economic growth of
a country. The quality and quantity
of available human resource can
directly affect the growth of an
economy.
The quality of human resource is
dependent on its skills, creative
abilities, training, and education. If
the human resource of a country is
well skilled and trained then the
output would also be of high
quality.

(ii) Natural Resources: this
Affect the economic growth of a
country to a large extent. Natural
resources involve resources that are
produced by nature either on the
land or beneath the land. The
resources on land include plants,
water resources and landscape. The efficient utilization or
exploitation of natural resources
depends on the skills and abilities
of human resource, technology used
and availability of funds. A country
having skilled and educated
workforce with rich natural
resources takes the economy on the
growth path.

(iii) Capital Formation:
Involves land, building, machinery,
power, transportation, and medium
of communication. Producing and
acquiring all these manmade
products is termed as capital
formation. Capital formation
increases the availability of capital
per worker, which further
increases capital/labor ratio.
Consequently, the productivity of
labor increases, which ultimately
results in the increase in output
and growth of the economy.

(iv) Social and Political Factors:
Play a crucial role in economic
growth of a country. Social factors
involve customs, traditions, values
and beliefs, which contribute to the
growth of an economy to a
considerable extent.
For example, a society with
conventional beliefs and
superstitions resists the adoption of
modern ways of living. In such a
case, achieving becomes difficult.
Apart from this, political factors,
such as participation of
government in formulating and
implementing various policies,
have a major part in economic
growth.
----(v) Technological Development: this
Refers to one of the important
factors that affect the growth of an
economy. Technology involves
application of scientific methods
and production techniques. In
other words, technology can be
defined as nature and type of
technical instruments used by a
certain amount of labor.
Technological development helps in
increasing productivity with the
limited amount of resources.


11)
International trade is the exchange of goods and services between countries.

bi)Immobility of Factors of Production:Labour and capital do not move freely from one country to another as they do within the same country. “Man”, declared Adam Smith, “is, of all forms of luggage, the most difficult to transport”.Much more so when a foreign frontier has to be crossed. Hence differences in the cost of production cannot be removed by moving men and money, the result is the movement of goods.On the contrary, between regions within the same political boundaries, people distribute themselves more or less according to opportunities. Real wages and standard of living tend to seek a common level, though they are notwholly uniform. As between nations, however, these differences continue to persist for wages and check population movements. Capital also does not move freely from
- one country to another. Capital is notoriously shy.
(ii)Different Currencies:Each country has a different currency. India for instance, has the rupee, the U.S.A. the dollar, Germany the mark, Italy the lira, Spain the peso, Japan the yen, and so on. Hence, buying and selling between nations give rise to complications absent in internal trade.
(iii)Restrictions on Trade:Trade between different countries is not free. Very often there are restrictions imposed by custom duties, exchange restrictions, fixed quotas or other tariff barriers. For example, our own country has imposed heavy duties on importof motor cars, wines and liquors and other luxurygoods.
(iv) Ignorance:Knowledge of other countries cannot be as exactand full as of one’s own country. Differences in culture, language and religion stand in the way offree communication between different countries.On the other hand, within the borders of a country, labour and capital freely move about. These factors, too, make internal trade different from international trade.
(v) Transport and Insurance Costs:Then costs of transport and insurance also check- free international trade. The greater the distance between the two countries, the greater are these costs. Wars increase them still more.