Verified Economics waec question and answer for free

QUESTION FOR ECONOMICS 2016 WAEC 100% VERIFIED

Verified Econs Obj

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(3a)

(i) Want: want simply means the desire or wish to own goods or services that gives satisfaction

(ii) Scarcity: scarcity refers to the limited available resources used in satisfying the unlimited human want.

(iii) Scale of Preference: this is refer to a list of individual wants in order of their relative importance.

(iv) Opportunity cost: Opportunity cost means the alternative foregone or sacrifice made in order to satisfy another want.

3b)

5ai)Direct tax refers to the type of tax imposed directly on income of individuals or organisation by government or its agency

5aii)Indirect tax:This refers to taxes which are imposed or levied on goods and services

5b)-It generate income for the country

-it discourages excess importation of foreign goods

-To promote locally produced goods

-To discourage importation of harmful goods into the country

5c)
-It is levy on consumer goods in form of VAT

-it is paid directly to the seller of good which remit it to the appropriate tax authority ===========================

8ai) What is ‘Money Supply’ Money supply is the entire stock of currency and other liquid instruments circulating in a country’s economy as of a particular time. Also referred to as money stock, money supply includes safe assets, such as cash, coins, and balances held in checking and savings accounts that businesses and individuals can use to make payments or hold as short-term investments.

8aii) The demand for money is the desired holding of financial assets in the form of money : that is, cash or bank deposits. It can refer to the demand for money narrowly defined as M1 (non-interest-bearing holdings), or for money in the broader sense of M2 or M3.

8b)
-Transactionary motives

-Precautionary motives

8c)
-The price level:If the price level increases it means that a given sum of money would buy the former goods and services.Fall in prices leads to an increase in the value of money

-Inflation and Delfation: The value of money reduces during inflation while the value of money increases during deflation

-Volume of goods and services: when more goods and services are available while the supply of money remains constant, the value of money will increase.More commodities can be purchases with a given sum of money

-The supply of money and its speed or velocity in circulation

7ai) transfer payment is a payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy.

7aii) An intermediate product is a product that might require further processing before it is saleable to the ultimate consumer. This further processing might be done by the producer or by another processor.

7aiii) Subsistence productions refers to output from the production process that is just enough for the survival.

7aiv) Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area’s total income by its total population.

7b)

i)Per capita income does not reflect the standard of living of the people.

ii)If per capita income is the measurement,the population problem may be cancealed.

iii)An increase in per capita income may not raise the real standard of living of people.

iv)Although an increase in output per head is in itself a significant achievement. ===========

(No6a) Money market is a financial market for lending and borrowing of short term loans while capital market is a financial market for the lending and borrowing of long-term loans

(No6b)

(i) Money market – central bank and Commercial Bank

(ii) Capital market: Building societies and the stock exchange.

(6c)

(i) Provision of loan: Commercial Bank make both short term and medium – term loans and overdrafts available to those involved in economic development.

(ii) Development of International Trade: Commercial banks through issuing of traveller’s cheques and open of letters of credit help in the development of international trade which contributes to the economic development of Nigeria.

(iii)Provide expert advice: they render expert financial advice to those that are involved directly or indirectly in economic development activities

(iv) Provides Employment Opportunities: they offer employment opportunities to many citizens thereby contributing to manpower development.

1a) total population of the country age 0-17 = 900 18-49 = 550 50-60 = 300 6.1 = 200 =2000

b) under 18 = 900 60md above = 280 the ratio = 900 : 250 18 : 5

bii) dependency ratio is 0-17

c) percentage of the population that constitute the labour force Age. 18 – 49 = 550 50 – 60 = 300 = 850 Total population is 2000 % of labour force = 850 * 100% _____ 2000 =42.5%

d) the population decline because it reduce from the age 1-17 to c1 and above

e) per Capital become 4,000,000 ____________ 850. = 1,705,882 App