Waec 2017 Economics Obj And Theory Answers – May/June Expo

Monday, 24th April, 2017
Economics 2 (Essay) 09.30am – 11.30am
Economics 1 (Objective) 11.30am – 12.30pm

WAEC

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    *Economics OBJ:*

    *1-10: BCDBBBCCBA
    *11-20: CCCCCDCCBD
    *21-30: BBCADCABAB
    *31-40: CAABBCDBDD
    *41-50: BDCABBBACA

    “””””” *Section A* “””””””

    *Questions 1*
    Tabule form
    Price:-450 ,500
    Weekly sales:- 800, 600

    Ai
    % change in demand= (800-600)*100
    ———-
    800
    =200/800*100%
    =25%

    %change in price=500-450*100%
    ——————
    450
    =50/450*100%
    =11.11%

    % elasiticy of demand =%change in demand /% change in price

    =25%/11.11%
    =2.25%
    ============

    2a)
    Qd = 30 – P
    Qs = 15 + 2 P
    Demand and Supply schedule for the market :
    Please tabulate
    Price ( $ ) : 2 ,4 ,7
    Qd : 28 ,26 ,23
    Qs : 19 , 23 , 29
    Qd = 30 – P when P = 2
    Qd = 30 – 2 = 28
    Qd = 30 – P when P = 4
    Qd = 30 – 4 = 26
    Qd = 30 – P when P = 7
    Qd = 30 – 7 = 23
    tabulate again
    supply schedule
    Please tabulate
    Price ( $ ) : 2 ,4 ,7
    Qd : 28 ,26 ,23
    Qs : 19 , 23 , 29
    Qs = 15 + 2 P when P = 2
    Qs = 15 + 2 ( 2 )
    = 15 + 4 = 19
    Qs = 15 + 2 P when P = 4
    Qs = 15 + 2 ( 4 )
    = 15 + 8 = 23
    Qs = 15 + 2 P when P = 7
    Qs = 15 + 2 ( 7 )
    = 15 + 14 = 29

    2bi)
    Equilibrium quantity
    Qd = 30 – P
    Qd = 30 – 5
    Qd = 25

    2bii)
    At P =$ 3
    Qd =30 – p
    Qd =30 – 3
    Qs =15 + 2 p
    = 15 + 2 ( 3 )
    = 15 + 6
    = 21 apples
    excess demand = 27 -21
    = 6 apples

    2ci)
    Tabulate
    Qd =40 – p
    Price ( $ ) : 2 ,4 ,7
    Qd : 38 ,36 ,33
    2 cii )
    i ) it represent an increase in demand
    2 ciii)
    i ) the two schedules show that there is a corresponding increase in demand for apples for ten ( 10 ) at each price

    =====================

    “”””” *SECTION B CHOOSE ANY 3 ANSWERS BELOW* “”””

    3a) Land:
    It refers to all natural resources which are free gifts of nature. Land, therefore, includes all gifts of nature available to mankind—both on the surface and under the surface

    3 b )
    i ) Land is a Primary Factor of Production
    ii) Land is a Passive Factor of Production
    iii)Land has some Original Indestructible
    Powers

    3c)-Fishery purposes: Land is used for fishery in rivers, seas and oceans. Fish ponds are also developed
    – Wildlife purpose: Land is used for wildlife conservation, e.g game reserves and national parks.
    -Livestock purpose: Land is also used for livestock production (I.e rearing of animals), e.g cattle, sheep, goat, poultry, e.t.c
    -Farming purpose: Land is used for the cultivation of both food and cash crops, e.g maize, yam, cocoa, etc.
    ________________________________
    4a) subsistence farming can be defined as the type of agriculture which is concerned with the production if food for the farmer and family only

    4b) crop farming can be defined as an agriculture which deal with crop cash production e. G cocoa, cashew, cowoea.
    WHILE livestock farming can be defined as the rearing of domestic animals e. G pig, fish etc

    4c
    -Credit facilities
    -Extension of workers
    -Construction of good road
    -provision of social ameninites

    _________________________________
    6a)Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

    6bi)
    -growing economy
    -expectation of inflation
    -discretionary fiscal
    6bii)
    -monopoly
    -wage inflation
    -exchange rates

    ______________________________
    7a) Economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community

    7b) -dependency on agricultural sector
    -illiteracy
    -production for self-consumption

    7c)
    -Currency Strength
    The value of the U.S. dollar compared to other foreign currencies such as the yuan, yen and the pound is important even for companies that do not import or export goods. Consumers have a choice to purchase goods or services originating in the United States or in other countries. If the U.S. dollar strengthens, companies in the industry that purchase inputs from other countries are able to be more competitive in pricing. In industries that are heavily reliant on foreign raw materials and processing, such as the clothing industry, the entire sector can be lifted or depressed with a strengthening or weakening of the dollar.
    -Government Intervention
    Many industries are regulated by the government in one form or another. Government agencies such as the –Environmental Protection Agency, the Food & Drug Administration or the U.S. Department of Agriculture maintain standards that all operators in an industry must follow for the safety of consumers, employees, or natural resources. Some industries are more heavily regulated than others and new laws and rules can shake up an entire industry and depress growth. For example, new child toy safety laws implemented under the Consumer Product Safety Improvement Act in 2009 threatened to wipe out many small toy producers as the requirements to test and certify the toys were cost-prohibitive to all but large toy manufacturers. Proposed changes to the Act may help alleviate the burden on small manufacturers and resellers.
    -Environmental Impact
    Economic growth in an industry can be impacted not only by the environmental effect the products or services have but also by consumers’ perceptions of that impact. For example, the market for fur apparel declined drastically over the course of a few years in the 1990s when consumers perceived that raising and killing small animals for their fur was both inhumane and a poor use of land. Although the industry is once again picking up with international demand, the number of fur farmers in the country has substantially declined. If the public views an industry’s products or services as being harmful or unsafe, most companies within the sector can experience a marked decline in sales quickly.
    -Overall Economic Health
    The economic state of the country
    confidence can also spur growth and development or harm it. In recessionary times, consumers begin limiting their purchases to the essentials, foregoing luxury or big-ticket items. Companies also scale back production, hiring and the development of new products and services to ensure that their finances can weather the storm. In periods of overall economic growth, these companies once again expand.

    8ai)- Increased exports.
    -Make use of surplus raw materials.

    8aii) -Restrictions on immigration
    – cross-border investment are abolished.

    8b) A common market, or single market, have advantages including consumers have more choice and lower prices.

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