Waec 2024 Nigeria Economics Answers.
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Number 1 Answers:
(a)
(i) Price per unit of the product before tax: The price before tax is where the demand curve (D) intersects the original supply curve (S₀) and the intersection point is at a price of $80.
(ii) Quantity demanded and supplied before tax: The quantity before tax is where the demand curve (D) intersects the original supply curve (S₀) and the quantity is 60 units.
(iii) Price per unit of the product after tax: The price after tax is where the demand curve (D) intersects the new supply curve (S₁) and the intersection point is at a price of $100.
(iv) Quantity demanded and supplied after tax:
– The quantity after tax is where the demand curve (D) intersects the new supply curve (S₁) and the quantity is 54 units.
(b)
(i) Amount of tax imposed per unit of the product: The tax per unit is the vertical distance between the original supply curve (S₀) and the new supply curve (S₁) in which the distance is $100 (price after tax) – $75 (price retained by sellers) = $25. i.e 100 – 75 = 25 (in dollar)
(ii) Amount retained per unit by the sellers after tax: The amount retained by sellers is the price they receive after tax is subtracted. This is $75.
Price before tax: $80
Price after tax: $100
Price retained by sellers after tax: $75
Tax per unit: $25
The total tax is $25. We see that:
- Buyers pay an additional $20 per unit ($100 – $80).
- Sellers receive $5 less per unit ($80 – $75).
(1ai)
The equilibrium price before the tax is $80.
(1aii)
At the equilibrium price of $80 (where S₀ intersects D), the quantity demanded and supplied is 60 units.
(1aiii)
The new equilibrium price is $100.
(1aiv)
At the new equilibrium price of $100, the quantity demanded and supplied is 54 units.
(1bi)
-Price after tax = $100
-Sellers receive = $75 (where S₁ intersects the original supply curve S₀ at the new quantity)
Tax per unit = $100 – $75 = $25
(1bii)
The amount retained per unit by the sellers after tax is the price that sellers receive after tax. This is where the new supply curve (S₁) intersects the original supply curve (S₀) at the new quantity of 54 units, which is $75.
(1ci)
-Buyers pay more than the original price after tax.
-Increase in price for buyers: $100 (price after tax) – $80 (price before tax) = $20
Percentage of the tax paid by buyers per unit:
(Buyer’s portion of the tax)/(total tax) × 100
(20/25) × 100 =80%
(1cii)
-Sellers receive less than the original price after tax.
-Decrease in price for sellers: $80 (price before tax) – $75 (price after tax) = $5
Percentage of the tax paid by sellers per unit:
(Seller’s portion of the tax)/(total tax) × 100
(5/25) × 100 =20%
ECONOMICS
(8a)
(PICK ANY ONE)
Economic development is the persistent growth in real per capital income coupled with structure changes in the economy which results in an improvement in the standard of living of the citizens.
OR
Economic development refers to a sustained and sustainable increase in the production of goods and services in an economy, accompanied by an improvement in the overall standard of living of the population.
(8b)
(PICK ANY THREE)
(i) Low per capita income: The average person in a developing country earns a relatively low income, which limits their ability to save money, invest in education or healthcare, and afford basic necessities like food, water, and shelter.
(ii) High population growth rate: Developing countries often experience rapid population growth, which can put a strain on resources, infrastructure, and services like healthcare and education. This can lead to a large youth population and a significant dependency ratio.
(iii) High rates of unemployment: Many people in developing countries are unable to find stable, well-paying work, leading to high levels of unemployment and underemployment. This can contribute to poverty, inequality, and social unrest.
(iv) Dependence on the primary sector: Developing countries often rely heavily on agriculture, mining, or other extractive industries, which can make them vulnerable to fluctuations in global commodity prices and leave them exposed to environmental degradation.
(v) Dependence on exports of primary commodities: Many developing countries rely heavily on exporting raw materials or primary products, such as cotton, coffee, or oil, rather than manufactured goods or services. This can limit their economic diversification and make them vulnerable to external shocks.
(vi) Low levels of living: Developing countries often struggle with poor living standards, including inadequate access to healthcare, education, sanitation, and clean water. This can lead to high rates of poverty, malnutrition, and infant mortality.
(8c)
(PICK ANY THREE)
(i) Investing in Human Capital: Investing in education, healthcare, and training programs to develop a skilled and productive workforce. This can lead to increased productivity, innovation, and competitiveness.
(ii) Encourage Investment in Infrastructure: Invest in building modern transportation networks, communication systems, and energy infrastructure to facilitate trade, commerce, and industrial development.
(iii) Promoting Trade and Export-Led Growth: Implement policies to increase trade and exports, such as reducing tariffs and other trade barriers, promoting foreign investment, and developing export-oriented industries.
(iv) Foster a Favorable Business Environment: Create a business-friendly environment by simplifying regulations, reducing bureaucracy, and promoting entrepreneurship and innovation. This can encourage startups, attract foreign investment, and stimulate economic growth.
(v) Develop Strategic Industries: Identify and develop strategic industries that have the potential for high growth and employment creation, such as technology, manufacturing, or tourism. Provide incentives and support to encourage investment and innovation in these industries.
ECONOMICS
(7a)
Central bank is the highest financial institution in a country which carriers out the monetary policy of the government.It is the sole authority in the banking industry which acts as banker to government and the commercial banks.
(7b)
[PICK ANY THREE (3)]
(i)Open Market Operation (OMO):Open market Operation is the purchase or sale of government securities in the open market to expand or restrict the volume of money in circulation.The central bank applies this policy with the aim of regulating the volume of money in circulation,the central bank will sell securities.But in order to expand the volume,it buys securities
(ii) Liquidity ratio or cash ratio:The commercial banks are mandated by the government to keep a special proportion,e.g 25% of their total deposit with the central bank in order to control the volume of credit.The size can be expanded or contracted depending on the economic condition of the nation
(iii) Bank rate:Bank rate is the minimum rate of interest charged by the central bank for discounting bill of exchange.By lowering or raising the rate,the central bank can control the activities of the commercial banks.When the rate increases,loan to the public (customers) reduces, while a fall in the rate will encourage more loans
(iv) Special directives:The Central bank can issue directives or specific instructions to the commercial banks and other financial institutions to restrict their lending or credit policy or on the direction to which loaning should follow.They will be told to direct their funds to sectors which are in need of investment
(v)Moral suasion:The central bank can make an appeal to the commercial banks to restrict or expand the level of credit to the public.Moral suasion is not based on the use of force but an appeal to restrict or expand the lending policy
(7c)
(i) 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 for this account.Central bank also obtains loan on behalf of the government.
(ii) Banker to commercial banks :The central bank acts as banker to commercial banks by ensuring that the banks open account with it in order to facilitate clearing of cheques.This helps the commercial banks to have similar facilities to offer to their customers.
(iii)Lender of last resort:The central bank has a duty ti assist the banking system when the banks are in financial difficulties so that they can withstand the strain of excessive demands.In some countries,the banks can borrow directly from the central bank.
(6a)
(i) Industrialization: The process of transforming an economy from primarily agricultural to one dominated by industry, characterized by the development of manufacturing, infrastructure, and technological advancements.
(ii) Mineral resources: Naturally occurring inorganic substances with economic value, such as metals, ores, and minerals, extracted from the earth’s crust.
(6b)
(i)Generation of foreign exchange earnings through exports.
(ii)Creation of employment opportunities in the mining sector.
(iii)Increased government revenue through royalties and taxes.
(6c) :
(i)Improved standard of living through increased access to goods and services.
(ii)Diversification of the economy, reducing dependence on a single sector.
(iii)Development of infrastructure, such as roads, energy systems, and transportation networks.
ECONOMICS
(8a)
(PICK ANY ONE)
Economic development is the persistent growth in real per capital income coupled with structure changes in the economy which results in an improvement in the standard of living of the citizens.
OR
Economic development refers to a sustained and sustainable increase in the production of goods and services in an economy, accompanied by an improvement in the overall standard of living of the population.
(8b)
(PICK ANY THREE)
(i) Low per capita income: The average person in a developing country earns a relatively low income, which limits their ability to save money, invest in education or healthcare, and afford basic necessities like food, water, and shelter.
(ii) High population growth rate: Developing countries often experience rapid population growth, which can put a strain on resources, infrastructure, and services like healthcare and education. This can lead to a large youth population and a significant dependency ratio.
(iii) High rates of unemployment: Many people in developing countries are unable to find stable, well-paying work, leading to high levels of unemployment and underemployment. This can contribute to poverty, inequality, and social unrest.
(iv) Dependence on the primary sector: Developing countries often rely heavily on agriculture, mining, or other extractive industries, which can make them vulnerable to fluctuations in global commodity prices and leave them exposed to environmental degradation.
(v) Dependence on exports of primary commodities: Many developing countries rely heavily on exporting raw materials or primary products, such as cotton, coffee, or oil, rather than manufactured goods or services. This can limit their economic diversification and make them vulnerable to external shocks.
(vi) Low levels of living: Developing countries often struggle with poor living standards, including inadequate access to healthcare, education, sanitation, and clean water. This can lead to high rates of poverty, malnutrition, and infant mortality.
(7a)
A Central Bank is a national financial institution that oversees the monetary system and policy of a country, manages currency issuance, regulates the banking sector, and serves as a banker to the government and commercial banks
(7b)
(i) Raising Interest Rates: By increasing the benchmark interest rates, borrowing becomes more expensive, reducing consumer and business spending and thus decreasing the money supply.
(ii) Selling Government Securities: The Central Bank can sell government bonds and securities to the public, which reduces the amount of money in circulation as buyers pay for these securities.
(iii) Increasing Reserve Requirements: By raising the reserve requirements for commercial banks, the Central Bank limits the amount of money banks can lend out, thereby reducing the money supply.
(7c)
(i) Banker to the government:
The Central Bank manages the government’s accounts, handles its transactions, and provides loans to cover short-term deficits. It also manages the issuance and redemption of government securities.
(ii) Banker to commercial banks:
The Central Bank holds reserves for commercial banks, provides them with liquidity through lending facilities, and acts as a clearinghouse for interbank transactions, ensuring the stability and smooth functioning of the banking system.
(iii) Lender of last resort:
The Central Bank provides emergency funding to financial institutions facing short-term liquidity crises to prevent bank runs and maintain confidence in the financial system. This role helps to ensure the stability of the financial sector.
(5a)
(i) Labour force: The labour force refers to the number of people employed or actively seeking work in a country, excluding children, retirees, and those unable to work.
(ii) Over-population: Over-population occurs when a country’s population exceeds the available resources, leading to issues like unemployment, poverty, and strain on infrastructure.
(iii) Mobility of labour: Labour mobility refers to the ability of workers to move freely between jobs, industries, and locations in search of better opportunities.
(iv) Optimum population: Optimum population is the ideal number of people that a country can support, balancing resource availability and economic growth.
(5b)
(i) High Birth Rate: Large families and a high number of children per family contribute to population growth.
(ii) Improved Healthcare: Advances in medicine and healthcare lead to lower mortality rates and increased life expectancy.
(iii) Increased Food Supply: Improved agricultural productivity and food availability reduce starvation and malnutrition, contributing to population growth.
(iv) Migration: Inward migration from other countries or regions can significantly contribute to population growth. (5a)
(i) Labour force: The labour force refers to the number of people employed or actively seeking work in a country, excluding children, retirees, and those unable to work.
(ii) Over-population: Over-population occurs when a country’s population exceeds the available resources, leading to issues like unemployment, poverty, and strain on infrastructure.
(iii) Mobility of labour: Labour mobility refers to the ability of workers to move freely between jobs, industries, and locations in search of better opportunities.
(iv) Optimum population: Optimum population is the ideal number of people that a country can support, balancing resource availability and economic growth.
(5b)
(i) High Birth Rate: Large families and a high number of children per family contribute to population growth.
(ii) Improved Healthcare: Advances in medicine and healthcare lead to lower mortality rates and increased life expectancy.
(iii) Increased Food Supply: Improved agricultural productivity and food availability reduce starvation and malnutrition, contributing to population growth.
(iv) Migration: Inward migration from other countries or regions can significantly contribute to population growth.
(6a)
(i) Industrialization: The process of transforming an economy from primarily agricultural to one dominated by industry, characterized by the development of manufacturing, infrastructure, and technological advancements.
(ii) Mineral resources: Naturally occurring inorganic substances with economic value, such as metals, ores, and minerals, extracted from the earth’s crust.
(6b)
(i)Generation of foreign exchange earnings through exports.
(ii)Creation of employment opportunities in the mining sector.
(iii)Increased government revenue through royalties and taxes.
(6c) :
(i)Improved standard of living through increased access to goods and services.
(ii)Diversification of the economy, reducing dependence on a single sector.
(iii)Development of infrastructure, such as roads, energy systems, and transportation networks.
CONCLUSION:
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