WAEC SSCE - Economics - 2000

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Balance of payment deficit implies that a country is importing more than she is exporting. This means that the total value of the goods and services that the country imports exceeds the total value of the goods and services that the country exports. In other words, the country is spending more on foreign goods and services than it is earning from the sales of its own goods and services to other countries. This can result in a shortage of foreign exchange reserves and can lead to difficulties in meeting foreign financial obligations.

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The income elasticity of a normal good is positive. This means that as a person's income increases, the demand for the good also increases. In other words, the quantity demanded of a normal good is directly related to income. If income increases, people can afford to buy more of the good, and if income decreases, people will buy less of the good.

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The supply of labor refers to the number of workers available to work in an economy. It can be influenced by several factors, including the size of the population, as a larger population generally means a larger workforce. The stage of economic development is also a factor, as more developed economies may have higher levels of education and skills training, leading to a larger and more productive workforce. The size of the country may also play a role, as workers in more remote or isolated regions may have limited opportunities or be less likely to migrate to areas with better job prospects. Finally, the extent of the market, or the number and size of businesses and industries in an economy, can also affect the supply of labor, as more firms may mean more job opportunities and a higher demand for workers.

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Basic extractive activities are classified as primary production. This refers to the economic sector concerned with the extraction and collection of natural resources from the environment, such as mining, agriculture, fishing, and forestry. Primary production involves harvesting raw materials directly from natural resources rather than producing new goods from previously made ones.

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Deficit budget means that the government's planned expenditure is more than the estimated income or revenue. In other words, the government is spending more money than it is earning. This may lead to borrowing and accumulation of debt, which can have long-term implications on the economy.

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The primary objective of the Nigerian Industrial Development Bank (NIDB) is to provide loans to manufacturers. The NIDB was established in 1964 to accelerate the growth and development of industries in Nigeria. The bank provides medium to long-term financing for fixed assets acquisition, working capital, and research and development. Its focus is on promoting the establishment of new industries and the expansion and modernization of existing ones to enhance their productivity and profitability. By providing affordable financing to manufacturers, the NIDB aims to stimulate economic growth and development, create job opportunities, and increase export earnings for the country.

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Cameroon is not a member of the Economic Community of West African States (ECOWAS). ECOWAS is a regional economic union consisting of fifteen West African countries, including Ghana, The Gambia, and Guinea Bissau. Cameroon is a Central African country and is not part of the West African region, and hence not a member of ECOWAS.

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The entire satisfaction that a consumer derives from a successive consumption of a particular commodity is known as total utility. Total utility represents the overall amount of satisfaction that a consumer receives from consuming a certain quantity of a product. As the consumer consumes more units of the product, the total utility increases, but at a decreasing rate. This is because of the concept of diminishing marginal utility, where each additional unit of the product provides less and less satisfaction to the consumer.

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Abstention from consumption, which allows for capital to be generated, is called savings. When people or institutions save, they refrain from spending all of their income, leaving some for investment in productive activities such as the acquisition of tools, machines, buildings, and so on. This capital investment increases the economy's productive capacity and enables it to produce more goods and services in the future. Savings, therefore, are critical to the growth and development of an economy.

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When the market is unstable, prices tend to fluctuate. This is because the market is not in equilibrium, which means that there is an imbalance between the quantity of goods supplied and the quantity of goods demanded. As a result, buyers and sellers are constantly adjusting their behavior, which causes the price to rise or fall until a new equilibrium is reached. Therefore, the correct answer is: "Price will fluctuate". The other options are not necessarily true when the market is unstable.

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The Average Variable Cost (AVC) curve is a graphical representation of the cost of producing one unit of output in the short run. The AVC curve shows the average variable cost of production for each level of output. The AVC curve is U-shaped because initially, as production increases, the cost per unit of output decreases due to economies of scale. However, as production continues to increase, the cost per unit of output begins to increase due to diminishing returns to variable inputs. Therefore, the AVC curve slopes upwards after reaching a minimum point. The minimum point is the point of the curve where the cost per unit of output is the lowest. This point is also where the Marginal Cost (MC) curve intersects the AVC curve from below. In summary, the AVC curve is U-shaped and slopes upwards after reaching a minimum point. The curve represents the average variable cost of production for each level of output, and it helps firms to make decisions about production levels and pricing.

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An association of workers in a particular industry, firm or line of job is called a "trade union". Trade unions are organizations that represent the collective interests of workers in negotiations with employers or government bodies. They work to protect the rights of workers and improve their working conditions, wages, and benefits. Trade unions also provide a platform for workers to express their grievances and work together to find solutions.

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Scarcity implies that goods and services are limited in supply. This means that there are not enough resources to produce everything that people want, and as a result, choices have to be made about which goods and services to produce and distribute. Since resources are finite, scarcity is an inherent feature of any economy, and it leads to the problem of allocation of scarce resources to satisfy unlimited human wants.

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Wages are to some extent, determined by the marginal productivity of labour. Marginal productivity of labour refers to the additional output that an additional unit of labour adds to the total production. When the marginal productivity of labour increases, it leads to an increase in wages. Employers are willing to pay higher wages when the workers are more productive and efficient, and this increased productivity leads to increased profits for the firm. Therefore, the level of wages paid to workers is closely related to their productivity, with higher productivity resulting in higher wages.

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The demand for a commodity that serves two or more purposes is known as composite demand. This means that the commodity is demanded for different uses or purposes, and the demand for the commodity is influenced by the demand for these different uses. For example, electricity is demanded for various purposes such as lighting, heating, and powering electronic devices, and the demand for electricity for each purpose is different. The total demand for electricity is the composite demand, which is influenced by the demand for each specific use. If the demand for one use of the commodity increases, the demand for the commodity as a whole may also increase. Conversely, if the demand for one use of the commodity decreases, the demand for the commodity as a whole may decrease.

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Census of population is usually conducted every 10 years. This means that every decade, the government counts the number of people living in a particular country or region. This is done to get a better understanding of the population, such as their demographics, ages, and occupations. It also helps the government to plan and allocate resources based on the needs of the population. For example, if there is a growing number of school-aged children in a particular area, the government can plan to build more schools to accommodate them. The census is important because it helps to ensure that everyone is counted and represented in the government's decisions.

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The quantity supplied of a book per week is given by the function: Qs = 70 + 1/2P, where P is the price of the book. To find the quantity supplied at a price of N8.00, we substitute P=8 into the equation: Qs = 70 + 1/2(8) Qs = 70 + 4 Qs = 74 Therefore, the quantity supplied of the book per week at a price of N8.00 is 74.

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The concept involved in this scenario is occupational mobility of labor. Occupational mobility of labor refers to the ability of workers to move from one occupation to another. In this case, Hassan moved from being an economic teacher to a banker, which is a different occupation. This type of mobility is important because it allows individuals to pursue new opportunities and can help them to improve their economic situation.

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The measure of central tendency is the Median. It is a statistical measure that represents the middle value in a set of observations. To calculate the median, you need to arrange the observations in order of magnitude and then select the middle value. If there is an even number of observations, the median is the average of the two middle values. The median is a useful measure of central tendency because it is not affected by extreme values, also known as outliers. Unlike the mean, which can be skewed by extreme values, the median is based on the order of the observations and is not influenced by the size of the values. For example, if you have a set of ten test scores, ranging from 60 to 100, and one of the scores is 100, the mean score would be affected by the outlier. However, the median score would remain the same, as it is based on the middle value, which is not influenced by the outlier. In summary, the median is a measure of central tendency that represents the middle value in a set of observations. It is not affected by extreme values, making it a useful measure for datasets with outliers.

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Over-population can lead to a fall in per capita income. This is because over-population leads to an increase in the labor supply, which in turn leads to a decrease in wages. As a result, individuals have less disposable income to spend on goods and services. This leads to a decrease in the demand for goods and services, and ultimately, a fall in per capita income. Additionally, over-population can lead to an increase in competition for resources, such as housing and food, which can further reduce individuals' purchasing power and contribute to a decrease in per capita income.

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The formula total product/number of men employed is used to calculate the average product. Average product is the average output produced by each unit of input, in this case, the average output produced by each worker. It is calculated by dividing the total product (the total output produced) by the number of workers employed. Average product is an important measure of productivity and efficiency, and is often used by firms to assess the performance of their workers and production processes.

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A collective data which has not been processed is referred to as raw data. Raw data is a set of unprocessed data collected from various sources and in its original form, without any manipulation or organization. It is the first step in the process of data analysis, and it needs to be processed, cleaned, and analyzed to make meaningful conclusions. Examples of raw data include survey responses, sensor readings, and financial records.

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The maximum amount of money a company is allowed to raise by issuing shares to the public is called authorized capital. This is the total amount of share capital that a company is authorized to issue as per its Memorandum of Association (MOA). The authorized capital can be changed with the approval of the shareholders, but this requires amending the MOA. The authorized capital is an important measure of a company's size and growth potential. It determines the company's ability to raise funds from the market and pursue its business objectives.

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Mono-product economies are those that produce one main commodity. This means that the economy is heavily reliant on the production and export of this one commodity, which can be either a natural resource or a manufactured product. Examples of mono-product economies include countries that rely heavily on the production and export of oil, such as Saudi Arabia or Venezuela, or countries that rely on the production and export of agricultural products, such as coffee or cocoa. Mono-product economies can be vulnerable to fluctuations in the global market for their one commodity, which can lead to economic instability and hardship for the population.

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The majority of the West African labour force is engaged in agricultural production. This means that a significant number of people in West Africa are involved in activities such as farming, livestock rearing, and fishing. Agriculture is an important sector of the economy in many West African countries and provides employment opportunities for a large portion of the population. The types of crops and livestock raised vary by country and region, but some common ones include cassava, yams, rice, maize, and cattle. The agricultural sector also contributes to food security, as the crops and livestock produced are used to feed the population as well as for export.

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One major export crop in West Africa is cocoa. Cocoa is a type of plant that produces seeds that are used to make chocolate and other products. The seeds are grown on trees that are found in tropical regions, including West Africa. The countries in West Africa that are major producers of cocoa include Ivory Coast, Ghana, and Nigeria. Cocoa is an important crop for the economy of these countries and is a major source of income for many people. It is exported to other countries where it is processed into chocolate and other products.

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A tax on a commodity whose demand is perfectly inelastic will fall heavily on the consumer. Demand for a product is considered perfectly inelastic when consumers are willing to pay the same price regardless of changes in supply or price. In other words, a change in price will have little to no effect on the amount of the product that consumers are willing to purchase. When a tax is imposed on a commodity with perfectly inelastic demand, the price of the product will increase. Since consumers are willing to pay the same price regardless of the increase, the burden of the tax falls heavily on them. The manufacturer, wholesaler, and retailer may also be impacted by the tax, but they can pass on some or all of the tax to the consumer in the form of a higher price. This is because they have some ability to adjust their prices based on changes in supply and demand. Overall, a tax on a commodity with perfectly inelastic demand is likely to fall heavily on the consumer, as they are unable to adjust their behavior in response to the increase in price.

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The type of unemployment that arises because of the introduction of new machines and equipment in production is called structural unemployment. This type of unemployment occurs when there is a mismatch between the skills that workers have and the skills that are required by the new machines and equipment. As a result, some workers may become unemployed because they no longer have the necessary skills to perform the new jobs created by the introduction of these machines. For example, if a factory introduces new machinery that can automate certain tasks, workers who were previously responsible for performing those tasks may become unemployed because their skills are no longer needed. In summary, structural unemployment occurs when changes in technology or the economy create a mismatch between the skills of workers and the demands of employers.

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The bank that grants credit facilities to individuals wishing to build houses is the Federal Mortgage Bank of Nigeria. It is specifically mandated to provide long-term credit facilities to mortgage institutions in order to enable them to finance the acquisition or construction of houses for residential purposes. Therefore, option D is the correct answer.

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Wages and salaries is an item of government recurrent expenditure. Recurrent expenditure refers to the day-to-day expenses that a government incurs in providing public goods and services, such as salaries, wages, pensions, rent, and supplies. These expenses are recurring in nature and are incurred on an ongoing basis. Wages and salaries, as part of the recurrent expenditure, refer to the payment of salaries and wages to government employees, including civil servants, teachers, healthcare workers, and other public servants. This item of expenditure is essential to the functioning of the government, as it ensures that public services are delivered efficiently and effectively. In contrast, capital expenditure refers to the spending on infrastructure projects and capital assets, such as road construction, port facilities, and telecommunication projects. These expenses are not recurring in nature and are typically incurred to create long-term assets that will benefit the economy or society over an extended period. In summary, wages and salaries is an item of government recurrent expenditure that refers to the payment of salaries and wages to government employees, while road construction, port facilities, and telecommunication projects are examples of capital expenditure that involve spending on infrastructure projects and capital assets.

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West African countries have low levels of economic development mainly due to ineffective plan implementation. While other factors like under-population, inadequate labor, and failure to plan can contribute to the lack of economic growth, poor implementation of economic policies and plans is a significant factor in West African countries' underdevelopment. This poor implementation of economic policies could be caused by various factors such as corruption, poor governance, lack of accountability, and insufficient funding. Without proper implementation, economic plans and policies will not yield the expected results, and the development of the country will remain stagnant.

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The most unique quality of money is its general acceptability. Money is accepted by people in exchange for goods and services because it is generally recognized and agreed upon as a medium of exchange. Unlike other items that may be used for exchange such as gold, diamonds, or other commodities, money has no intrinsic value, but it is valuable because people accept it as payment for goods and services. This makes it a universally accepted means of exchange, and one of the most important functions of money.

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Wages and salaries are items of government recurrent expenditure. Recurrent expenditure refers to regular, ongoing expenses incurred by the government in the day-to-day running of its operations. Wages and salaries are paid to civil servants and public officials for the work they do in providing public services, and are therefore an example of recurrent expenditure. The other options listed are capital expenditures, which refer to investments made in long-term assets such as infrastructure, equipment, and buildings.

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Foreign exchange control in most West African countries is enforced by the Central Banks. Central Banks are the institutions responsible for regulating and supervising the financial system in a country, including the management of its currency. As part of their role, Central Banks often implement foreign exchange controls, which are rules and regulations that restrict or limit the buying and selling of foreign currencies by individuals and businesses. These controls are typically put in place to maintain stability in the country's financial system, prevent capital flight, and manage the balance of payments. In West African countries, the Central Banks are the primary institutions responsible for enforcing these controls, rather than development banks, merchant banks, or the ministry of economic planning.

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The function of a retailer is to sell goods directly to the end consumer. Therefore, of the options given, "stocking a variety of goods" is the function of a retailer. Retailers buy goods in large quantities from manufacturers and wholesalers and then sell them in smaller quantities to consumers. The retailer is responsible for ensuring that the goods they stock are what their customers want and need, and they must also ensure that they are properly displayed and priced to attract customers. While retailers may provide some storage facilities for their goods, this is not their main function. Financing manufacturers and advertising goods are also not functions of the retailer, as these activities are typically performed by manufacturers and wholesalers or advertising agencies, respectively.

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The Organization of Petroleum Exporting Countries (OPEC) is a cartel. A cartel is a group of producers who collude to limit competition and increase prices in a particular industry. OPEC is made up of 13 member countries, mostly located in the Middle East, Africa, and South America, that collectively control over 40% of the world's oil production. OPEC members cooperate to control the supply of oil and stabilize prices by setting production quotas for each member country. This allows OPEC to influence the global price of oil by adjusting its production levels.

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One important feature of sole proprietorship is that one person bears all the risks. Sole proprietorship is a form of business in which an individual owns and manages the business alone. This means that the owner is solely responsible for all the debts and obligations of the business. In other words, the owner has unlimited liability for the business. As a result, the owner also enjoys all the profits and controls all the decision-making in the business. This makes sole proprietorship an attractive option for individuals who want to start and manage a business on their own.

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Public enterprises are established mainly to provide basic amenities for the people. These are owned and operated by the government, with the primary goal of providing essential services to the public. These services may include utilities like electricity, water, and transportation, as well as social services like healthcare, education, and housing. The aim of public enterprises is to ensure that these essential services are available to all citizens, regardless of their ability to pay for them, and to promote social welfare. While public enterprises may generate revenue, their primary focus is not profit but rather the provision of vital public services.

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Net migration is the difference between the number of immigrants (people who move into a country) and the number of emigrants (people who move out of a country) during a specific period of time, usually a year. It is a measure of how much the population of a country is changing due to international migration. If more people are coming into the country than leaving, the net migration is positive, and if more people are leaving than coming in, the net migration is negative. Net migration is an important indicator of population growth and demographic changes in a country.

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The movement along the same curve is a change in quantity demanded. This means that there has been a change in the quantity of a good or service that consumers are willing and able to buy due to a change in the price of that good or service, assuming all other factors remain constant. It is important to note that this is not the same as a shift in demand, which would involve a change in one or more of the other determinants of demand (such as income, tastes and preferences, price of related goods, etc.).

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Dividing the total variable cost by the quantity of output gives the average variable cost (AVC). Variable costs are costs that vary with the level of production, such as the cost of raw materials and labor. The total variable cost is the sum of all variable costs incurred to produce a certain quantity of output. The average variable cost is found by dividing the total variable cost by the quantity of output produced. It represents the cost per unit of producing a certain quantity of output, and is important in determining the profitability of a product or service. If the average variable cost is higher than the price at which the product is being sold, the producer is making a loss on each unit produced. Therefore, it is important to keep the average variable cost as low as possible to maximize profits.

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A consumers co-operative society is owned by its members. These members are individuals who have bought shares in the society and have the right to vote on matters related to the running of the co-operative. This is one of the fundamental principles of co-operatives - democratic member control, where each member has an equal say in the decision-making process regardless of the number of shares they hold. Therefore, the co-operative society is not owned by a management committee, debenture holders or the government, but by its members.

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The charging of different prices to different groups of buyers for the same goods or services is called price discrimination. Price discrimination is when a seller charges different prices to different groups of customers for the same product or service. This can be based on various factors, such as location, age, income, or quantity purchased. The goal of price discrimination is to maximize profits by charging each customer the highest price they are willing to pay. For example, a movie theater might charge seniors a lower ticket price than adults, or an airline might charge more for a last-minute ticket than for one purchased well in advance. Price discrimination can occur in various types of markets, including monopolies, oligopolies, and monopolistic competition. It is often viewed as a way for sellers to increase their profits, but it can also be seen as a way to make goods or services more affordable for certain groups of consumers.

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Commercial banks settle their inter-bank indebtedness through **central banks**. When one commercial bank needs to settle an obligation to another bank, it may not necessarily have cash reserves in the other bank. In such a situation, the banks can go through the central bank, which acts as an intermediary to settle the inter-bank transactions. The central bank facilitates the transfer of funds between the banks, making sure that the payment obligations of each bank are met.

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Small enterprises often find it difficult to expand due to inadequate capital. This means that they don't have enough money to invest in the necessary resources, such as new equipment or employees, to expand their operations. Without enough capital, they may struggle to keep up with demand or to enter new markets. Lack of access to loans or other forms of financing can also contribute to the problem. While lack of skilled manpower, the high level of technology required for expansion, and the inability to provide after-sale services can be challenges for some small enterprises, inadequate capital is often the main obstacle to growth.

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Economic problems mainly arise as a result of the limitation in the availability of resources. Resources are the materials, factors, and inputs used in the production of goods and services in an economy. Resources include natural resources, labor, capital, and entrepreneurship. However, these resources are scarce, and as a result, the economy has to make choices on how to allocate them efficiently. When there is a limitation in the availability of resources, the economy faces several problems. For instance, the economy may not be able to produce enough goods and services to meet the demand, which results in scarcity. This, in turn, leads to high prices, inflation, and a decline in the standard of living. Additionally, the scarcity of resources can lead to unemployment, as the economy may not have enough resources to produce the goods and services needed to create employment opportunities. This, in turn, can lead to poverty, income inequality, and social unrest. In summary, economic problems arise mainly as a result of the limitation in the availability of resources. When resources are scarce, the economy faces several problems, including scarcity, high prices, inflation, unemployment, poverty, income inequality, and social unrest.

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An industry can be best described as an aggregation of individual firms that are involved in producing similar commodities. Industries are often characterized by firms that have similar production processes, face similar market conditions, and offer similar products to their consumers. For example, the automobile industry consists of different firms that produce cars, and the textile industry is made up of firms that produce fabrics and textiles.

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Shares and stocks can be bought in the stock exchange. A stock exchange is a marketplace where publicly traded companies' stocks and shares are bought and sold by investors. It provides a regulated and transparent platform for buyers and sellers to exchange securities. When a company wants to raise capital, it can issue shares of stock to the public. Investors can then buy these shares through a stockbroker, who acts as an intermediary between the buyer and the seller. The stockbroker facilitates the transaction on the stock exchange by matching buyers with sellers and executing trades. Investors can buy and sell shares in the stock exchange in real-time, and the prices of stocks fluctuate based on market demand and supply. The stock exchange is subject to regulations and oversight by regulatory bodies to ensure transparency, fairness, and investor protection. In summary, stocks and shares can be bought in the stock exchange, which provides a marketplace for publicly traded companies' securities to be bought and sold by investors through intermediaries called stockbrokers.

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Regressive taxation is a tax system where the rate of tax decreases as the income increases. This means that the tax rate is higher for lower-income individuals and lower for higher-income individuals. Therefore, the more someone earns, the smaller the percentage of their income they pay in taxes. So, the correct answer is: "reduces when income increases."

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