NECO Economics OBJ & Theory/Essay Questions and Answer – June/July 2018 Expo Runz
You’re to answer only one question from section A
==== SECTION A ( Answer any 1 Question ) =======
When p is 6
When p is12
When p is 20
When p is 27
When p is 32
1b) DRAW THE DIAGRAM
i) The price
ii) The price of other commodities
iii) Income of the consumers
vi) Change in taste of consumer
vii) Weather And Climate
===== SECTION B ( Answer any 4 Questions ) ======
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
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.
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.
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.
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.
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.
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
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
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.
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.
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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