2022 NECO GCE ECONOMICS ANSWERS!
*(GENERAL INSTRUCTIONS: Answers five (5) Questions in All. One (1) Question From Section A. And Five (5) Questions from Section B.)*
SECTION A (ANSWER ONLY ONE(1) QUESTION)
(i)Average cost is also known as cost per unit,it is ratio of total cost to the quantity of output, while marginal cost is the ratio of charge in total cost to the charge in the quantity or level of output
(ii)Both average cost and marginal cost decreases as the level of output increases
SECTION B (ANSWER ONLY FOUR (4) QUESTIONS FROM THIS SECTION)
The dependency ratio is a measure of the number of dependents aged zero to 14 and over the age of 65, compared with the total population aged 15 to 64.
Declining Population: A reduction over time in a region’s population can be caused by sudden adverse events such as outbursts of infectious disease, famine, and war. for example sub-replacement fertility, persistently low birth rates, high mortality rates etc.
Efficiency of labour Refers to the productive capacity of a worker to do more or better work or both during a specified period of time.
Division of labor: It combines specialization and the partition of a complex production task into several, or many, sub-tasks.
Recurrent expenditure refers to regular expenses incurred by the government in the provision of goods and services e.g. salaries, fueling gov‘t vehicles, servicing public debt etc.
Capital expenditure refers to government spending that goes into financing specific projects such as construction of roads, railway lines, airports etc.
(CHOOSE ANY FIVE)
(i) TAXES: Taxes include both direct and indirect taxes. Government generates income or revenue by taxing individuals and corporate bodies.
(ii) LOANS: Government can obtain loans from both internal and external sources e.g. the World Bank, etc. Grants and aids Government can receive grants and aids as revenue from wealthy or developed countries.
(iii) LICENCE: Government can generate revenue through licences, e.g. driver’s licence.
(v) SAVINGS: Government can also generate revenue through savings, especially when a country has budget surplus.
(vi) RENTS AND RATES: Earnings from water, properties, housing, etc owned by the government are sources of income to the government.
(vii) FEES, FINES AND ROYALTIES: Government can generate revenue through court fees, mining companies, postage charges, etc.
(viii) EARNINGS FROM GOVERNMEN INVESTMENTS: Government can also earn income from government-owned business enterprises or from joint ventures.
Economic planning may be defined as government’s conscious formulation of economic policies for the allocation of resources to all sectors of the economy over a period of
time. This brings about sustained growth in the economy.
(CHOOSE ANY FIVE)
(i) To increase the level of employment: A good economic plan will ensure the increase in the level of employment in the economy.
(ii To develop efficient technology: A good economic plan can promote a better and efficient technology.
(iii) To increase the real income of citizens: The real income of the citizens can easily be increased through a good economic planning.
(iv) Equitable allocation of resources: Development plan is aimed at equal allocation of the country’s resources to all sectors of the economy.
(v) Diversification of the economy: Through good development planning, Nigeria’s economy will be diversified to many sectors.
(vi) To bridge the gap between the rich and the poor: A good economic planning ensures distribution of income more evenly among individuals and the socio-economic groups.
(vii) To achieve economic self-sufficiency: Through good development planning offers the essential mechanism for overcoming some obstacles to economic development.
(viii) To ensure economic growth: Development planning offers the essential mechanism for overcoming some obstacles to economic development.
(ix) To reduce foreign control of the economy: A good development planning will assist to reduce foreign control or dominance of the national economy.
(x) To ensure joint business participation: A good development planning will increase the participation of citizens in the ownership and management of productive enterprises.
(xi) To reduce rural-urban migration: A good development planning will also ensure that movement of people from rural to urban centres is reduced.
(i)It has contributed to the transformation of technology as a pre- condition of economic growth and they contributed to the expansion of electronic
networks by opening possibilities for trade in long-distance services.
(ii)It allows the production and
consumption of information by allowing domestic firms to benefit
through the transfer of technology.
(iii)It has globally contributed more to
the global output by employing more
people in the sector and responsible for Growing economic interdependence.
(v)It increases movements of people
and services across national borders, f
all these have been made possible by
the revolution in communication,
information, and other technologies
well as important political changes.
(v)It has taken the front stage of economic development as a result of the rapid expansion of knowledge based.
Nationalization is the process of taking privately-controlled companies, industries, or assets and putting them under the control of the government.
(i) To provide social amenities such as water and electricity at affordable/reasonable prices and to protect the people from exploitation by private firms through the establishment of similar firms.
(ii) To control private monopoly through nationalisation and to raise revenue for government for developmental purposes.
(iii) To provide public goods which are not normally provided by the private sector. E.g. Defense. And to create employment which helps to raise the standard of living of the citizens.
(iv) For strategic reasons since certain industries cannot be left in the hands of the private sector e.g ammunition production and Where huge initial capital is involved, government steps in when the private sector cannot provide it.
(v) To diversify the economy, leading to growth and development and to ensure even development across the country.
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