WAEC GCE 2016 Economics anwser

Friday 22nd April 2016
ECONOMICS 2(ESSAY) 9.30AM – 11.30PM
ECONOMICS (OBJ & ESSAY) 11.30AM – 12.30PM
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Econs obj
1dbacabadcc
11aabbaaabab
21cadccdadcc
31cccbdaccaa
41abdbbbbcdb
[2]
2
2)
R= ∆TU/∆U
= 19-10/2-1
=9/1
R=9
P=19+6=25
S= ∆TU/∆U
= 31-30/5-4
=1/1
S=1
Q=31+0=31
b) At level 6 where total utility is 31. This is when marginal utility
is zero and point of satiety is reached
c) The law of diminishing marginal utility States that the amount of satisfaction an individual derives from additional unit of commodity decreases as his consumption of that utility increases
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5a)
Elasticity of supply is the degree of responsiveness of the supply
to little change in the price of commodity.
5b)
i)In Joint supply two or more commodities are produced and
supplied from one or more sources, while in competitive supply
two or more commodities are supplied to serve as substitute.
ii)In joint supply and increase in the production and supply of
one commodities will bring about an increase in the production
and supply of the commodity, whereas in competitive supply a
commodity is supplied for d satisfaction of a particular want
5c)
i)Cost of production: the cost of production normally leads to
elasticity
ii)Nature of commodity: perishable goods are elastic in supply
due to their nature
iii)Cost of storage: producers will supply all their commodities to
the market if the cost of storage is high thereby leading to
elasticity
iv)Market forces: this determines whether supply will increase or
not
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4a)
i)Peasant Farming is the cultivation of crops and rearingof animals on a small scale.
ii)Cooperative farming : it is defined as a system in which individual farmers pool their resources (excluding land) to buy commodities such as seeds and
fertilizers, and services such as marketing.
4b)
– Provision of avail credit
-Provision of some sort of mechanisition
– Provision of agricultural knowledge through extension
etc
-provision of good roads for transportation
– provision of fertilizers to enhance productivity
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1)
a) Direct taxes = 100 + 120 = 220
Indirect taxes = 80+100+150+90 = 420
b) Recurrent expenditure = 150+200+220+180+70
= 820
c) Total revenue = 860
Indirect tax = 460
% indirect tax = 460/860 x 100 = 53.49%
d) Total revenue = 860
Total expenditure = 1040
Budget deflecit = 180
Budget deflicit because expenditure is higher than the
revenue collected
6a)These institutions are now major competitors of banks in the U.K. And are the equivalent of U.S. savings and loan institutions. Building societies can also be found in other countries, such as Australia, Ireland and Jamaica.
6b) A central bank is an entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment.
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no8
8
a) Gross domestic product measures the value of total production attributable to all factors of production that are located in the territory of a given country
b) Gross National product — When necessary adjustment for the surplus of a nation on its current account with the rest of the world has been made, the resulting figure is called the Gross national product (GNP)
c) Cost of living is the aggregate amount of money which a person spends to provide himself the needs usually over a period of one year.
d) Per Capita Income is obtained by dividing the total national income by the total population.
e) Standard of living — When Per Capita Income is calculated, what u get determines whether the standard of living is high or low. The higher the quotient, the higher the standard of living, all things being equal.