2024 WAEC GCE FIRST SERIES (JANUARY) ECONOMICS: 2024 WAEC GCE First Series ECONOMICS QUESTIONS AND ANSWERS (4303)

(5a)

Labour refers to the physical and mental effort exerted by human beings in the production process. Capital, on the other hand, refers to the physical goods that are used in the production process.

(5b)

(i) Supply of labour: The supply of labour may increase, as workers are attracted to the higher wage. 

(ii) Supply of wheat: The supply of wheat may decrease, as the higher wage would increase the cost of production for wheat. 

(iii) Price of wheat: The price of wheat may increase, as the higher cost of production would lead to higher prices for consumers.

(iv) Price of rice, a substitute of wheat: The price of rice, a substitute for wheat, may increase as the increased cost of production for wheat makes it relatively more expensive than rice. This could lead to an increase in demand for rice, and subsequently increase its price.

(6a)

Open market operation:- is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. 

(6b)

-Central Bank-

(i) A Central Bank devises new policies and rules which have to be followed by the other banks.

(ii) The Central Bank acts as a banker to several other banks and the government.

(iii) A Central Bank is owned by the public sector/ government.

-Commercial Bank-

(i) A Commercial Bank is the richest bank in the nation.

(ii) A Commercial Bank serves as a dealer to the citizens of the nation.

(iii) A Commercial Bank is owned by both the public and private sectors.

(6c)

(i) Financing Trade:-

The money market provides financing to local and international traders who are in urgent need of short-term funds. It provides a facility to discount bills of exchange, and this provides immediate financing to pay for goods and services.

(ii) Growth of Industries:-

The money market provides an easy avenue where businesses can obtain short-term loans to finance their working capital needs. Due to the large volume of transactions, businesses may experience cash shortages related to buying raw materials, paying employees, or meeting other short-term expenses.

(iii) Central Bank Policies:-

The central bank is responsible for guiding the monetary policy of a country and taking measures to ensure a healthy financial 'copied from e x a m p l a z a . c o m free' system. Through the money market, the central bank can perform its policy-making function efficiently.

(7a)

Economic planning is a process of setting goals, formulating policies, and making decisions to achieve a desired economic outcome.

(7b)

(i) Political instability: It can lead to changes in government policies and priorities, which can disrupt ongoing economic plans and lead to delays or cancellations of planned projects.

(ii) Inflation: It can lead to uncertainty and volatility in the financial markets, making it difficult to secure financing for investment projects or raise capital for business expansion.

(7c)

(i) Responding to External Shocks

(ii) Mitigating Market Failures

(iii) Allocating Resources Efficiently

(iv) Promoting Economic Growth and Development

(8a)

-ABSOLUTE ADVANTAGE-

(i) Absolute advantage describes the ability of a specific country to produce goods at a lower cost per unit

(ii) Trading is not mutually beneficial for two countries

(iii) Allows a country to produce a higher volume of goods with the given amount of resources

(iv) Considers advantage of producing numerous goods

-COMPARATIVE ADVANTAGE-

(i) Comparative advantage describes the ability of a specific country to produce goods at a lower opportunity cost

(ii) Trading is mutually beneficial for two countries

(iii) Allows a country to produce goods better than another nation with the same amount of resources

(iv) Considers overall production of a nation during a given time frame

(8b) 

(i) differences in technology, 

(ii) differences in resource endowments, 

(iii) differences in demand, 

(iv) the presence of economies of scale, 

(v) the presence of government policies.