WAEC ANSWER ECON> OBJECTIVE AND THEORY

Econs obj
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11aabbaaabab
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31cccbdaccaa
41abdbbbbcdb

3a)
Production possibility curve is a graphical representation which shows how one good can be transformed into another good by cutting down on the output of first good and transferring the resources to production

3b)
DRAW THE PRODUCTION POSSIBILITY CURVE
3c)
-Inability to increase the available resources because the resources are fixed
-Lack of economy in terms of cost of producing at the point A
3d)
Production possibility is negatively sloped because to increase the production of one commodity,a certain unit of the other commodity must be given up.There is an inverse relationship in production of the combined goods

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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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8a)
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

8b)
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)
8c)
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.
8d)
Per Capita Income is obtained by dividing the
total national income by the total population.
8e)
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.
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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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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

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6)
BUILDING SOCIETY
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.
ii)CENTRAL BANK
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.

6b)
i)Open Market Operation (OMO)
ii)Special Directives
iii)Moral suasion
iv)Liquidity ratio or cash ratio
v)Special Deposit
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4a)
i)Peasant Farming is the cultivation of crops and rearing of 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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