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2020/2021 WAEC/NECO Answers: Nabteb Gce 2021. Economics answers

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==============================

ECONOMIC-THEORY-ANSWERS


(1a)

 THE IMAGE

(1b)

(i) Saving account: 1980, 1981, 1982 1983

= 120 + 200 + 160 + 180

Total funds = ₦660

(ii) Current account: 100+100+120+110

Total funds = ₦430

(iii) Fixed account: 60+55+80+85

Total funds = ₦280

(1c) 

The account that has the highest fund in the four years is saving account which has the total fund of ₦660

=================================

(5a)

Capital can be defined as the goods that are used for the production of other goods and services. Examples include, machines, tools, money, equipment etc. Capital is very important in production in economics. The reward for capital is interest. 

(5b) 

(i) Essential for Production: Production without capital is hard for us even to imagine. Nature cannot furnish goods and materials to man unless he has the tools and machinery for mining, farming, foresting, Ashing, etc. If man had to work with his bare hands on barren soil, productivity would be very low indeed. Capital provides these machinery and tools for high productivity.

(ii) Importance in Economic Development: Broadening and deepening of capital are mainly responsible for economic development. Because of its strategic role in raising productivity, capital occupies a central position in the process of economic development. In fact, capital accumulation is the very core of economic development. It may be free enterprise economy like the American or a socialist economy like that of Soviet Russia or a planned and mixed economy of India, economic development cannot take place without capital formation.

(iii) Creating Employment Opportunities: Another important economic role of capital is the creation of employment opportunities in the country. Many workers have to be engaged to produce goods with the help of machines, factories, etc. Therefore, employment will increase as capital formation is stepped up in the economy. 

(iv) Increases Productivity: With the growth of technology and specialization, capital has become still more important. More goods can be produced with the aid of capital. Capital adds greatly to the productivity of worker and hence of the economy as a whole.

==============================

(6a)

A retailer is an individual or organization that buys goods in small quantities from the wholesaler or producer and sells in smaller quantities to the final consumers. The retailer it the second middleman in the distribution channel. 

(6b) 

In a tabular form:

Retailer:

(i) He buys in small quantity from the whole sale. 

(ii) He sells varieties of goods. 

(iii) He does not brand and package of goods. 

(iv) He grants credit to his customers only. 

(v) He does not provide warehousing facilities.

(vi) He requires small capital to start with. 

Wholesaler:

(i) He buys in large quantity from the producer or the manufacturer. 

(ii) He does not sell varieties of goods. 

(iii) He involves in branding and packing of goods. 

(iv) He pays the producers for goods in advance to enhance production. 

(v) He provides warehousing facilities for the safe keeping of goods till they are needed. 

(vi) He requires large capital to start with

==============================

(3a)

Scale of preference is a document or list that contains our wants arranged in their order of importance. Thus, what we prefer most comes first on the list while that is of least importance to us comes last. 

(3b) 

(i) Scarcity: This is a situation where the amount of a particular commodity or service that is available cannot go round those that need it. Thus, the commodity is said to be limited in supply or scarce. It is only when things are scarce we value them.

(ii) Choice: Choice is the act of choosing one or more items from two or more items. Since man faces the problem of scarcity of resource with which to satisfy his wants, he has to choose which want to satisfy first and which to satisfy last. 

(iii) Want: This is refers to things or commodities that are human desires. Examples are car, house, wife, husband etc. Human wants are unlimited and insatiable. 

(iv) Resources: These refers to all natural, Human and manufactured valuable items or materials or services which are assumed to make rational decisions to achieve the greatest satisfaction or the maximum fulfillment of their goals.

(v) Opportunity Cost: This is alternative forgone. It is the real cost of making a choice ie choosing one item instead of the other. For example, if a pencil is purchased instead of a cloth, the opportunity cost is a cloth foregone

==============================

(8a)

Money can be defined as anything that is generally accepted for the payment of goods and services and repayment of debts in a given country. Money facilitates the exchange of goods and services. 

(8b) 

(i) Medium of exchange: It helps people to exchange or buy goods and services without any problem unlike barter system. 

(ii) Unit of account: It is a standard monetary unit if measurement of value or cost of goods and services to assets. That is, money is divisible into smaller unit unlike barter system where goods are not divisible into smaller unit. 

(iii) Store of value: Wealth can be stored in form of money over time. It must be able to reliably saved, stores and retrieved and be predictably usable as a medium of exchange unlike barter system. 

(iv) Measure of value: Money acts as a standard measure and common denomination of trade. It is a basis of quoting and bargaining of price unlike barter system where there is no standard measurement for goods and services

==============================

COMPLETED



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