WAEC SSCE - Economics - 1991

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Choice is necessary because resources are scarce. This means that there are not enough resources available to satisfy all the wants and needs of people. As a result, people have to make choices about how to allocate the resources they have in order to best meet their needs and wants. These choices involve trade-offs, where the decision to use a resource for one purpose means that it cannot be used for another purpose. Therefore, choice is necessary in order to make the best use of the limited resources available.

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The monetary system that requires a double coincidence of wants is known as the barter system. In a barter system, goods or services are directly exchanged without the use of money. In order for a trade to occur, both parties must have what the other wants, creating a double coincidence of wants. For example, if you have a cow and want some wheat, you would need to find someone who has wheat and wants a cow. This can be difficult and time-consuming, which is why barter systems are not commonly used in modern economies.

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Agriculture plays a dominant role in West African economies because it employs more than 50% of the total labour force in the region. In other words, a significant portion of the population in West African countries depend on agriculture for their livelihood. Additionally, there are large plantations of crops such as cocoa, groundnut, and oil palm in the region, which provide a major source of revenue for these countries. The abundance of arable land and favorable weather conditions in West Africa also make agriculture a viable and important economic activity.

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The function of money is to serve as a medium of exchange, a unit of account, and a store of value. Among the options given, the function of money that is described is "a standard of deferred payment". This means that money can be used to make payments that will be settled at a future date. For example, if you take out a loan from a bank, you are using money as a standard of deferred payment, as you will be paying back the loan with money in the future.

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The reason that is not a typical reason why people migrate from one place to another is "To buy foreign goods for sale in their country." People may travel for trade, but migration implies moving from one place to another with the intention of living there permanently or for an extended period. People usually migrate to find jobs and improve their standard of living, to live in a more suitable climate, for the sake of change and adventure, or to escape from a religious, political, or social situation in a country. These reasons are driven by the desire for better opportunities, safety, and a better quality of life.

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Devaluation means a reduction in the value of the national currency relative to foreign currencies. This usually occurs when a government intentionally lowers the value of its currency in relation to other currencies, usually by reducing the exchange rate. Devaluation can lead to a decrease in the purchasing power of the domestic currency, making imports more expensive and exports more competitive.

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Open market operations refer to the process by which the Central Bank of a country buys or sells securities in the open market in order to influence the money supply, interest rates, and ultimately, the overall economy. This involves the Central Bank purchasing or selling government securities, such as bonds or treasury bills, from or to commercial banks or other financial institutions. By doing so, the Central Bank can increase or decrease the amount of money in circulation, affecting the interest rates at which banks lend and borrow money from each other, and ultimately impacting the broader economy. Open market operations are one of the primary tools used by Central Banks to control inflation, stabilize the currency, and promote economic growth.

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In the event of a limited liability company going into liquidation, each shareholder may lose a maximum of the amount he has invested. This means that if a shareholder invested $10,000 in the company, the maximum he can lose if the company goes into liquidation is $10,000. The shareholder is not personally responsible for any debts or liabilities incurred by the company beyond the amount of his investment. This is the main advantage of investing in a limited liability company, as it protects the personal assets of the shareholders in the event of the company's failure.

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The value of money is determined by the general price level. In other words, the purchasing power of money is determined by the amount of goods and services it can buy. If the general price level of goods and services in an economy is high, the value of money will be low and vice versa. The rate of interest, quantity of money in circulation, level of economic development, and weight of the currency notes and coins are not direct determinants of the value of money, but they can affect it indirectly.

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The approximate working age range in Nigeria is which is between 15 and 65 years old. This is because the legal age for employment in Nigeria is 15 years old, and the retirement age is 65 years old. However, it's important to note that this range may vary depending on the industry or occupation. Some jobs may have lower or higher age requirements, and some people may choose to retire earlier or later than the official retirement age.

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The statement that is not true in an inflationary period is: "Wages rise simultaneously with prices." Inflation is a period when the general price level of goods and services increases continuously, resulting in a decline in the purchasing power of money. During this period, wages may increase due to increased labor demand or negotiations by labor unions, but they may not necessarily rise simultaneously with prices. Inflation is caused by various factors, such as an increase in the money supply, cost-push factors, demand-pull factors, and supply shocks. As the general price level rises, the purchasing power of money diminishes, leading to a reduction in real income for fixed income earners. Inflation also creates a situation where more money is chasing a limited quantity of goods, which results in an excess demand for goods and services over the available supply.

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In a sole proprietorship, decisions are made by the owner. This is because a sole proprietorship is a type of business organization in which an individual owns and operates the business alone, and therefore has complete control over all decisions related to the business. The owner is responsible for making all major decisions, such as setting business goals, determining strategies, hiring employees, and managing finances. Since there are no other shareholders, directors or partners involved, the owner has full autonomy over the business and can make decisions without needing to consult or seek approval from anyone else.

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The public corporation among the options listed is the National Electric Power Authority (NEPA). A public corporation is a legal entity established by the government to carry out specific public functions. NEPA was a government-owned utility company responsible for generating, transmitting, and distributing electricity across Nigeria before it was restructured and privatized into various successor companies. The other options listed are private corporations or limited liability companies that are owned and operated by private individuals or organizations for profit-making purposes.

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The income approach is one of the methods used to measure the national income of a country. It calculates the total income earned by all factors of production in the country during a given period of time. Out of the options given, student's grants and scholarships are not included in measuring national income by the income approach. This is because grants and scholarships are considered transfers of income, which means they are not earned through the production of goods or services. Therefore, student's grants and scholarships are not included in the calculation of national income by the income approach, while wages and salaries of public servants, profits of companies, income earned by self-employed persons such as lawyers, and rents on property are included.

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If over a period of time there is more money in the economy than the available goods and services, the economy is likely to experience inflation. This is because when there is too much money chasing too few goods, the prices of goods and services will rise. This can lead to a decrease in purchasing power of the currency, as it requires more money to buy the same amount of goods and services. Inflation can have negative effects on an economy, such as reducing the value of savings, decreasing investment, and causing social and political unrest.

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A movement along the demand curve for some goods is caused by a change in the price of that particular good. When the price of a good changes, it directly affects the quantity of that good that consumers are willing and able to buy. If the price of a good decreases, consumers will typically demand more of it, whereas if the price of a good increases, consumers will typically demand less of it. Changes in consumer income, tastes, the price of other goods, and population can also affect the demand for a good, but they do not cause a movement along the demand curve. Instead, they cause a shift in the demand curve itself, which represents a change in the amount of a good that consumers are willing and able to buy at any given price level.

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The argument that "capital is easily available in rural areas" is not a reason for locating industries in rural areas. Explanation: Capital refers to the money needed to start or invest in a business. Generally, it is easier to access capital in urban areas where there are more financial institutions, investors, and a larger economy. Rural areas may have less access to capital, which can be a challenge for starting businesses. Therefore, this argument does not support the idea of locating industries in rural areas.

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The palm oil industry is located in Bendel State because the state is a palm-tree growing area. The climate and soil conditions in Bendel State are suitable for growing palm trees, which are the main source of palm oil. Therefore, the state has a comparative advantage in palm oil production.

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A government treasury bill is a short-term debt instrument issued by the government to raise funds from the public. It is usually issued for a period of 91 days, which means it falls due for repayment after three months. The government uses these funds to finance its short-term expenditures such as infrastructure development, education, healthcare, etc. Treasury bills are considered to be one of the safest forms of investment because they are backed by the government and are considered to have very low risk.

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In economics, the demand curve shows the relationship between the price of a product and the quantity that consumers are willing to buy at that price. When there is a shift of the demand curve to the right while the supply curve remains constant, it means that at every price point, consumers are willing to buy more of the product. This could be due to factors such as an increase in consumer income, a change in tastes and preferences, or an increase in the availability of credit. As a result, both the price and quantity demanded will increase. Therefore, the correct answer is: "both price and quantity demanded will increase."

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Dumping in economics refers to the practice of selling goods in a foreign market at a price below that received in the home market. This is done in order to gain a competitive advantage in the foreign market and increase market share. The purpose of dumping is to drive competitors out of the market and establish a monopoly. Dumping is generally considered an unfair trade practice, as it can cause harm to domestic producers in the foreign market. It can also lead to a race to the bottom in terms of pricing, which can be detrimental to all producers involved.

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A tax is considered good when its payment causes minimum inconvenience to the taxpayer. In other words, a good tax is one that does not burden the taxpayers too much while still generating revenue for the government to finance public services and infrastructure. A good tax system aims to be fair, efficient, and simple, taking into consideration the ability of taxpayers to pay and the impact of taxation on the economy. So, a good tax system balances the needs of the state to collect revenue and the taxpayers' ability to pay.

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Direct taxes are taxes that are imposed directly on individuals or organizations and cannot be passed on to others. Therefore, the direct taxes from the given options are income and company taxes. These taxes are paid by individuals and companies directly to the government based on their income or profit. On the other hand, sales taxes, excise duties, tariff duties, and commodity taxes are indirect taxes as they are imposed on the sale of goods and services and can be passed on to the final consumer.

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Retailers perform the function of distribution in an economy. They buy goods from manufacturers or wholesalers and sell them to consumers at a markup price. This involves the physical movement of goods from the producers to the consumers through the distribution channels, which may include intermediaries such as wholesalers, agents, and retailers. Retailers may also provide storage facilities for the goods they sell, but this is not the primary function. Retailers do not engage in production, investment or hoarding of goods.

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