Economy 2022 waec questions & answers

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    Price elasticity of demand may be defined as the degree of responsiveness of the quantity demanded of a commodity to change in the price of a commodity. In order words, it is the degree of responsiveness of quantity demanded to a small change in the price of the commodity.

    (i) On elastic demand, Demand is said to be elastic if small change in price leads to a greater change in the quantity of goods demanded. While On inelastic demand, demand is said to be in elastic if a larger change in price leads to a small or slight change in the quantity of goods demanded.

    (ii) On elastic demand , elasticity is greater than one or unitary , i.e E ==>10<1



    (i) Domestic trade involves the exchange of goods within the borders of a country While External trade involves the exchange of goods and services across national frontiers
    (ii) In domestic trade ,a common language is used While Extern trade requires knowledge of new languages and interpretation.
    (iii) Buyers and sellers in domestic trade use the same type of currency While In external trade,buyers and sellers use different currencies .
    (iv) In domestic trade , the legal system are the same While in external trade, there are differences in legal systems and culture

    Term of trade is the rate at which country’s exports exchange for it’s import. It is expressed as a relationship between the prices a country recieves for it’s exports and the price it pay for import WHILE Balance of trade is the total value of goods sold and bought by a country during a given period , usually a year. When visible exports equal visible imports in monetary terms ,we have balance of trade.

    (Pick Any Four)
    (i) Low level of agricultural production: This makes Nigeria dependent on food imports and exported inputs for her agro-allied industries.

    (ii) Low level of technological development: Low level of technological development makes the country’s a greater importer of advance technology

    (iii) inadequacies in export promotion strategies: Export promotion strategies to encourage more earnings for the country are grossly inadequate

    (iv) Excessive government expenditure: This attitude encourage the government to engage in massive importation of all kinds of goods into the country

    (v)poor social and economic infrastructure: Poor social and economic infrastructure contribute greatly to low capacity utilisation in the industries section eg bad roads, irregular supply of electricity,water and poor telecommunication

    (vi)Existence of import-dependent industries: These industries reduce the country’s earnings a they demand for the scarce foreign exchange to enable them to procure machines and raw materials from abroad.
    Entire labour force = 30+37+19+12.2+16.1+10.8+15.6+19+10.3 = 170million

    (i) Primary sector ==> Mining + Fish farming + food crop production

    % of primary sector = (16.1+10.8+15.6)/170 ×100%
    = 12.5/170 × 100%
    = 25%

    (ii) Secondary sector ==> Shoe production + Fish processing + Baking

    % of primary sector = (30+19+19)/170 × 100%
    = 40%

    (iii) Tertiary (%) = 100% – (40+25)%
    = 35%

    Ratio = 16.1/30 = 161:300

    % Warehousing = 12.2/170 × 100%
    = 7.2%

    (i) Mixed economy
    (ii) Government and individuals can feature in the three sectors
    Product retailing is the process when the dealing are based on tangible goods and usually a relationship with the buyer develops overtime when the buyer visits the product retailer frequently over a period of time.

    (i)Breaking of bulk: The Wholesaler serves as a bulk breaker to the manufacturer to enable the retailer buy the goods
    (ii)Price stability: They help to prevent price fluctuation by stocking the goods until they are demanded.
    (iii)Information dissemination: Since the Wholesaler is more closer to the retailers and the consumers, he knows what they want and the complaints that has been made on the goods of the manufacturer.

    (i)Packaging problems: The packaging of goods is not standardized. This may result in damage or loss in transit.

    (ii) Inadequate transport facilities: The poor transport system also affects commodity distribution and marketing in the country. The roads are so bad that commodities sustain great damage due to accidents.

    (iii) Long chain of distribution: There are too many middlemen. The numerous links along the chain of distribution make the price of commodities to increase considerably.

    Economies of scale is the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced. A decrease in cost per unit of output enables an increase in scale.

    (i) Technical Economies of Scale
    (ii) Purchasing Economies of Scale
    (iii) Managerial Economies of Scale

    The three factors that can influence where a firm is sited are:
    (i) Availability of raw materials: Firms will do better if they are located near to the source of raw materials. It will definitely reduce cost of production thereby increase its economies of scale.
    (ii) Availability of Labour: Firms tend to boom where there is sufficient and affordable labour to increase output.
    (iii) Transport: Accessibility of transport means, roads and reduction of cost of transportation are determinant factors that do boost the productivity of firms.

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