2024 WAEC GCE SECOND SERIES (NOVEMBER) ECONOMICS: Economics (Econs) WAEC GCE Second Series (November) Authentic Answers 2024 (2652)

(3a) 

Price Elasticity of Demand measures the responsiveness of the quantity demanded of a good to a change in its price, all other factors being constant.

Formula: PED = (% Change in Quantity Demanded) / (% Change in Price). Income Elasticity of Demand measures the responsiveness of the quantity demanded of a good to a change in consumer income, all other factors being constant. Formula: YED = (% Change in Quantity Demanded) / (% Change in Income)

(3bi) Government:

It helps in assessing the impact of taxes on consumer behavior. Inelastic goods may bear the burden of taxes without a significant reduction in quantity demanded.

It affects decisions related to public services pricing, as inelastic goods may be charged higher without a sharp decline in demand.

(3bii) Monopolist:

It guides a monopolist in setting prices. If demand is elastic, lowering prices may increase total revenue, while inelastic demand allows for higher prices without a significant loss in revenue.

(3biii) Devaluation of Currency as it Affects Exports:

It helps understand how changes in the currency value affect the demand for exports. If the PED for exports is elastic, a devaluation may lead to a proportionally larger increase in export demand.

(3biv) Trade Unions' Agitation for Wage Increase:

It provides insight into how consumers might react to changes in prices resulting from wage 'copied from e x a m p l a z a . c o m free' increases. If PED for certain goods is elastic, consumers may be more sensitive to price increases, and the impact on demand should be considered in wage negotiations.

(5a)

Crop farming is the intentional cultivation of plants on a piece of land for the purpose of producing food, fiber, and other agricultural products for human use.

(5b)

(PICK ANY THREE)

(i) Foreign Exchange Earnings: Cash crops, when exported, contribute significantly to a country's foreign exchange earnings, bolstering its economic standing globally.

(ii) Employment Opportunities: Cash crop farming provides jobs, from planting to harvesting and processing, thereby reducing unemployment, especially in rural areas.

(iii) Rural Development: The cultivation of cash crops can lead to the development of rural areas, providing infrastructure and improving living standards.

(iv) Diversification of Income Sources: Cash crop farming allows farmers to diversify their income, reducing dependence on a single crop and helping withstand market fluctuations.

(v) Technological Advancements: Cultivating cash crops often involves adopting modern agricultural practices, leading to increased productivity and efficiency.

(vi) National Economic Growth: Revenue from cash crop exports contributes to the overall economic growth of a country, supporting government initiatives and projects.

(5c) 

(PICK ANY THREE)

(i) Food Security: Ensuring a stable and sufficient food supply for the population to meet nutritional needs and reduce 'copied from e x a m p l a z a . c o m free' dependence on food imports.

(ii) Rural Development: Promoting rural development by investing in agricultural infrastructure, education, and healthcare to improve living standards.

(iii) Sustainable Agriculture: Encouraging environmentally sustainable farming practices, promoting soil health, water conservation, and biodiversity.

(iv) Income Generation and Poverty Alleviation: Implementing policies to increase farmers' incomes, create employment opportunities, and alleviate poverty in rural communities.

(v) Market Access and Fair Trade: Facilitating market access for farmers, ensuring fair trade practices, and promoting value addition to agricultural products for better competitiveness.

(vi) Research and Innovation: Investing in agricultural research and innovation to improve crop varieties, enhance productivity, and address challenges such as pests, diseases, and climate change.

(6a)

Indigenization refers to the process of transferring ownership, control, or participation in various sectors of an economy from foreign entities to local or indigenous individuals or groups. It often involves policies or measures aimed at promoting economic empowerment and self-reliance within a country.

(6bi) A Sugar Cane Processing Plant:

(i) Proximity to Raw Materials: The plant should be situated close to sugar cane farms to minimize transportation costs and ensure a fresh and efficient supply of raw materials.

(ii) Access to Water Resources: Sugar cane processing requires significant water usage, so proximity to a sustainable and reliable water source is crucial.

(iii) Transportation Infrastructure: Good transportation networks are essential for the distribution of finished products and the movement of raw materials.

(6bii) A Ceramic Tile Factory:

(i) Access to Raw Materials: Siting near clay deposits or other raw material sources is important to reduce transportation costs and ensure a stable supply chain.

(ii) Skilled Labor Availability: Proximity to areas with skilled workers, especially those with expertise in ceramics and related fields, to ensure a competent workforce.

(iii) Market Accessibility: Being located near major markets or transportation hubs to facilitate the distribution of ceramic tiles to consumers.

(6c)

(PICK ANY FOUR)

(i) 'copied from e x a m p l a z a . c o m free' Employment Opportunities: Localization creates job opportunities for the local population, contributing to reduced unemployment and poverty levels.

(ii) Economic Development: It fosters economic development by attracting investments, generating revenue, and promoting infrastructure development in the localized area.

(iii) Skill Development: Localization encourages the development of specialized skills within the local workforce, enhancing their capabilities and expertise.

(iv) Reduced Environmental Impact: Concentrating industries in specific areas allows for better environmental planning and management, minimizing the overall ecological footprint.

(v) Infrastructure Development: The establishment of industries in a localized area often leads to improved infrastructure, including roads, utilities, and public services.

(vi) Promotion of Entrepreneurship: Localization can encourage the growth of local businesses and entrepreneurship, creating a supportive ecosystem for economic activities.

(8a)

A balance of payments deficit occurs when a country's total payments for goods, services, and financial transactions exceed its total receipts or exports. In other words, it indicates that a nation is spending more on foreign goods, services, and investments than it is earning from its exports and investments abroad.

(8b)

(PICK ANY THREE)

(i) Exports and Imports Discrepancy: A persistent trade imbalance, where a country imports more goods and services than it exports, can lead to a current account deficit. This often results from factors such as low competitiveness, a reliance on imported goods, or unfavorable terms of trade.

(ii) High Levels of External Debt: Excessive borrowing from foreign sources can lead to substantial debt repayments, putting pressure on a country's balance of payments. If the debt service obligations (repayments and interest payments) are high, it can contribute to a deficit.

(iii) Unstable Exchange Rates: Fluctuations in exchange rates can impact a country's competitiveness in the global market. A depreciating currency may make imports more expensive, contributing to a trade imbalance and a potential current account deficit.

(iv) Global Economic Downturns: Economic recessions or slowdowns in major trading partners can reduce demand for a country's exports, leading to lower export earnings and contributing to a current account 'copied from e x a m p l a z a . c o m free' deficit.

(v) High Domestic Inflation: If a country experiences high inflation rates compared to its trading partners, it can erode the competitiveness of its exports and lead to higher import costs, contributing to a trade imbalance.

(vi) Sudden Capital Outflows: Large-scale capital flight, where foreign investors withdraw their funds rapidly, can negatively impact a country's capital and financial account. This can result from factors such as political instability, economic uncertainty, or changes in global investor sentiment.

(8c)

(PICK ANY THREE)

(i) Protection of Domestic Industries: West African countries may impose trade restrictions to protect their domestic industries from foreign competition. This is particularly common in developing economies where local industries may struggle to compete with more established international counterparts.

(ii) Infant Industry Protection: Governments may restrict international trade to provide protection to nascent or "infant" industries that are in the early stages of development. The goal is to allow these industries to grow and become more competitive before facing global competition.

(iii) Balance of Payments Concerns: Some West African nations may restrict imports to address balance of payments issues. By reducing imports, these countries aim to decrease trade deficits and maintain a more favorable balance between exports and 'copied from e x a m p l a z a . c o m free' imports.

(iv) Preservation of Foreign Exchange Reserves: Restricting imports can help conserve foreign exchange reserves, especially in situations where a country is experiencing a shortage of foreign currency. This measure ensures that essential goods and services can still be imported without depleting reserves.

(v) Food Security and Agricultural Development: Some countries restrict the importation of certain agricultural products to promote self-sufficiency and domestic agricultural development. This is often seen as a strategy to enhance food security and reduce reliance on foreign markets.

(vi) Strategic Resource Management: West African countries may restrict the export of certain natural resources or strategic goods to ensure that these resources are used domestically or that they fetch higher prices on the international market.

(vii) Public Health and Safety Concerns: Restrictions may be imposed on certain imports due to health and safety concerns. Governments may want to ensure that imported goods meet specific standards to protect the health and well-being of their citizens.