NECO GCE 2023 Economics Objective & Essay Questions And Answers



(i)Business Idea: The initial step involves conceptualizing a business idea that resonates with the entrepreneur’s passions, skills, and expertise. This concept needs to align with market needs and possess a unique selling point to stand out amidst competition.

(ii)Market Research: Conducting comprehensive market research is pivotal. This entails analyzing the industry landscape, identifying the target market, understanding consumer preferences, studying competitors’ strategies, and discerning market trends. This information helps in shaping the business model and strategies.

(iii)Legal Structure: Sole proprietors must choose an appropriate legal structure. Opting for a sole proprietorship means the business and the owner are considered the same legal entity, which impacts liability and taxation. Understanding the legal implications and considering factors like personal liability protection and tax obligations is crucial.

(iv)Finances: Financial considerations encompass estimating initial capital requirements, creating a detailed budget, forecasting expenses, and exploring potential funding sources (like personal savings, loans, or investors). A solid financial plan is essential for sustainability and growth.

(v)Location: Choosing the right business location, whether physical or virtual, plays a pivotal role. Factors such as proximity to the target market, accessibility, costs, zoning regulations, and the potential for growth should be weighed before finalizing the location.

(vi)Regulations and Permits: Comprehending the legal requirements, permits, licenses, and regulations applicable to the business is vital. Failure to adhere to these legalities can lead to penalties or even closure. Seeking legal counsel or consulting with relevant authorities is often necessary.

(vii)Marketing Strategy: Crafting a robust marketing strategy is imperative to reach and engage the target audience effectively. This involves determining branding strategies, advertising channels, social media presence, pricing strategies, and customer acquisition tactics.

(viii)Risk Assessment: Identifying potential risks and devising risk mitigation strategies is essential. Analyzing market volatility, potential disruptions, competition, and financial uncertainties allows for proactive measures to safeguard the business.

Industry refers to a group of firms or businesses that produce similar goods or services. These firms typically compete with each other within the same market, sharing common characteristics or production methods.


(i)Infrastructure Development : Improving the country’s infrastructure, such as reliable electricity, transportation networks, and communication systems, is crucial. Consistent power supply is especially vital for industries; investing in renewable energy sources can provide sustainable solutions.

(ii)Policy Reforms: Implementing policies that promote ease of doing business, such as reducing bureaucratic hurdles, simplifying regulations, and providing incentives like tax breaks for industries, can attract both local and foreign investments.Additionally, offering tax incentives and guarantees for long-term stability can further entice industries.

(iii)Investment in Education and Skills Training: Developing a skilled workforce through education and vocational training programs tailored to the needs of industries can enhance productivity and attract more businesses.Partnerships between educational institutions and industries can bridge skill gaps and boost employability.

(iv)Access to Finance: Providing access to affordable credit and funding mechanisms for startups and small-to-medium enterprises (SMEs) can stimulate entrepreneurship and industrial growth. Establishing accessible and affordable credit facilities, venture capital funds, and support mechanisms for entrepreneurs can spur innovation and enterprise growth.

(v)Research and Development (R&D): Encouraging innovation through investments in research and development helps industries stay competitive, foster technological advancement, and create unique products or processes. It can foster innovation hubs and encourage collaboration between academia and industry.

Brain drain refers to the emigration or outflow of skilled, educated, and talented individuals from one country to another. This phenomenon typically involves professionals, scientists, engineers, doctors, and other highly skilled workers leaving their home country to seek better opportunities, higher salaries, better living conditions, or improved quality of life abroad.


(i)Education and Training: The quality and relevance of education and training programs significantly impact human capital efficiency. Access to quality education, vocational training, and lifelong learning opportunities enhances skills and adaptability in the workforce.

(ii)Health and Well-being: Physical and mental health directly affect productivity. Healthy individuals tend to perform better, so access to healthcare, sanitation, and a conducive work environment is crucial.

(iii)Technology and Innovation: The ability to adapt to and utilize new technologies affects human capital efficiency. Embracing technological advancements and having the skills to leverage them effectively are vital for productivity.

(iv)Work Environment: Factors like workplace culture, management style, and organizational support influence human capital efficiency. A positive, inclusive, and supportive work environment fosters productivity and innovation.

(v)Demographics: Age, gender, and diversity in the workforce can influence human capital efficiency. Embracing diversity and ensuring equal opportunities for all demographics can lead to a more efficient and innovative workforce.

(vi)Social and Cultural Factors: Social norms, cultural attitudes toward work, and societal support for education and training can influence human capital efficiency. Embracing a culture that values learning and continuous improvement can positively impact efficiency.


(i)Export-Oriented Policies: These countries adopted export-led growth strategies, focusing on producing goods for international markets. They specialized in manufacturing industries, promoting exports through incentives, infrastructure development, and trade policies that facilitated access to global markets.

(ii)Investment in Education and Human Capital: The Asian Tigers prioritized education and skill development. They invested heavily in education systems, ensuring a highly skilled and adaptable workforce. This emphasis on human capital contributed to innovation and productivity.

(iii)Technological Advancements and Innovation: Embracing technological advancements and innovation was crucial. These nations actively invested in research and development, fostering an environment conducive to innovation. They utilized technology to enhance productivity across industries.

(iv)Strong Governance and Policies: Sound governance, stable political environments, and consistent economic policies were instrumental. These countries had governments committed to economic development, implementing policies that promoted stability, infrastructure development, and business-friendly environments.

(v)Infrastructure Development: Investment in infrastructure played a pivotal role. They developed robust transportation, communication networks, and efficient logistics systems that supported industrial growth and facilitated trade

(vi)Foreign Direct Investment (FDI): These nations attracted significant FDI by offering incentives, tax breaks, and creating favorable conditions for foreign investors. This influx of capital supported industrialization and economic expansion

(vii)Strategic Government Intervention: Governments in the Asian Tigers intervened strategically in the economy, supporting industries in their early stages, fostering competition, and gradually liberalizing markets to encourage efficiency and growth.

Optimum population refers to the ideal or optimal size of a population that maximizes economic welfare or utility within a given set of resources and technological capabilities. It aims to achieve a balance where the population size aligns with the available resources.


(i)Strain on Resources: A larger dependent population puts pressure on resources such as healthcare, education, and social services. Increased demand for these services can strain the government’s budget and infrastructure, potentially affecting the quality and accessibility of these essential services.

(ii)Labor Market Impact: With a higher dependent population, a larger portion of the workforce may be occupied with caring for dependents, reducing the number of individuals available for productive economic activities. This can potentially lower the labor force participation rate and limit economic productivity.

(iii)Increased Household Expenditure: Families with more dependents often allocate a significant portion of their income to meet the needs of children or elderly relatives. This increased expenditure on essentials like food, education, and healthcare can reduce household savings and limit investment in other areas of the economy.

(iv)Social Security Challenges: An increased dependent population may strain social security systems. As more individuals retire or require social assistance, the sustainability of pension systems and social welfare programs may come under pressure.

(v)Impact on Savings and Investment: A larger dependent population might lead to lower national savings rates. With more income directed towards consumption and meeting the needs of dependents, there might be less capital available for investment, potentially affecting economic growth and development.

(vi)Long-term Economic Challenges: If the dependency ratio remains high over an extended period, it might impact the country’s demographic dividend—the potential economic boost that comes from a large working-age population. A higher dependency ratio could inhibit the realization of this dividend.



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