2024 NABTEB GCE ECONOMICS: 2024 NABTEB GCE ADVANCE ECONOMICS QUESTIONS and ANSWERS (8590)

(1)
(i) Availability of natural resources.
(ii) Availability of raw materials
(iii) Technology
(iv) Availability of capital


(2a)
Public Corporation are government owned establishment and enterprises through the act of parliament or statutes, decrees or edicts to provide essential social and welfare services to the people

(2b)
(i) Owned by the state;
A public corporation is fully owned by the state and state is responsible in subscribing the whole of the capital.

(ii) Created by a special Act of legislature;
It is an autonomous corporate body created by special act of legislature and the powers, duties, immunities etc. are defined by the Act.

(3a)
Optimum population is the size of population which when combined with the available resources and level of technology will yield the highest output per head.

(3b)
(i) The size of markets will increase: This should enable firms to take greater advantage of economies of scale.

(ii)There may be an increase in factor mobility if the rise has resulted from an increase in the birth rate or immigration.


(4)
(i) Collective bargaining: In this method, representatives of the union and employees will meet to negotiate or deliberate on issues affecting the workers.

(ii) Work to rule: This involves the slowing down of rate of work by the worker. They will come to work but the rate of work will be slowed down by the workers.

(iii) Picket lines: This involves the workers staying at the entrance of the factory and refusing to work.

(iv) Threat to strike: The workers' union gives ultimatum to the employer that they will embark on strike if their demands are not met on time.

(5)
(i) Buying and Assembling
(ii) Selling
(iii) Collection and Supply of Market Information
(iv) Helps In Introducing New Products

(6a)
Peasant farming can be defined as a localized system of agricultural farming usually operated on a small piece of land.

(6b)
Commercial farming can be defined as a large-scale farming geared toward production of crops and livestock for commercial purposes with widespread distribution to wholesalers or retail outlets.

(7)
(i) Medium of exchange: It means that money can be used to make payments for all the transactions of goods and services

(ii) Measure of value: Money serves as a measure of value. The value of all goods and services is expressed in terms of money.

(iii) Standard of deferred payments: Money can be used conveniently for deferred payments which need to be paid by individuals. It has become the standard for payments made presently or in future.

(iv) Transfer of value: Money also serves for transfer of value. It facilitates buying and selling of goods not only in the domestic country but also in other parts of the world.

(8)
=POSITIVE EFFECTS OF INFLATION=
(i) Higher Profits since producers can sell at higher prices
(ii) Increase in Production

=NEGATIVE EFFECTS OF INFLATION=
(i) Inequality in Income Distribution Increases
(ii) Harmful Effects on Capital Accumulation

(9)
(i) Change in demand is caused due to a change in own price of the commodity whereas change in quantity of goods demanded is caused due to a change in other factors affecting the demand for that commodity but the price remains constant.
(ii) Change in demand leads to a movement along the same demand curve whereas Change in quantity of goods demanded leads to a shift in the demand curve.
(iii) Change in demand occurs due to an increase or decrease in price of the commodity whereas change in quantity of goods demanded occurs due to change in other factors such as price of related goods, income of the consumer etc.

(10)
= Positive effects of petroleum industry on the economy of Nigeria are:
(i) Provision of revenue in form of petroleum tax/sales of petroleum products.
(ii) It is a source of foreign exchange.

= Negative effects of Petroleum industry on the economy of Nigeria are:
(i) The discovery of oil led to rapid monetary expansion which has caused a high rate of inflation
(ii) Oil exploration in Nigeria has caused ecological problem like pollution

(11)
TABULATE
x: 12| 38| 39| 20| 46| 34| 20| 66| 53| 43| 20| 18| 28| 34| 69| 43| 70| 64| 52| 48|
Σx= 817
dx= x-A= x-41: -29| -3| -2| -21| 5| -7| -21| 25| 12| 2| -21| -23| -13| -7| 28| 2| 29| 23| 11| 7|
Σ(dx)= -3
dx²: 841| 9| 4| 441| 25| 49| 441| 625| 144| 4| 441| 529| 169| 49| 1784| 4| 841| 529| 121| 49|
Σ(dx)² = 6099

(11a)
Mean(x̄) = Σx/n
=12+38+39+20+46+34+20+66+53+43+20+18+28+34+69+43+70+64+52+48/20
= 817/20 = 40.85
x̄ = 40.85 is not an integer, use assumed mean method A = 41

(11b)
Range = Maximum value - Minimum value
= 70-12 = 58

(11c)
Variance(s²) = Σdx²- [Σ(dx)²/n]/n
= 6099-[(-3)/20]/20
= 6099-0.45/20 =6098.55/20
= 304.9275
= 304.9(approx.)

(11d)
Standard Deviation = √Variance
= √304.9 = 17.4613
= 17.5(approx.)

(14a)
A discriminating monopolist is the one that charges different prices for the same commodity in the same market

(14b)
(i) Selling cost: Firms in a monopolistic competition promote sales by incurring selling cost. Selling cost includes all types of costs incurred to promote sales. Selling cost is usually incurred in the form of advertisement, exhibitions, gifts, free samples and so.

(ii) Freedom of entry and exit: Another important feature of monopolistic competition is the freedom of entry and exits of firms. A firm is free to enter the market to produce which is a substitute for the existing products. There exists freedom of entry and exit of firms in the market

(iii) Large number of seller's: There are many sellers of firms in a monopolistic competition. A single seller is not large enough to influence the market. Each one may, to a certain extent, follow an independent price and output policy without disturbing others

(iv) Product differentiation: Product is differentiated in monopolistic competition. Products differ from each other in many ways. Product differentiation can take place in the form of brand name and trade mark. Products may be differentiated in terms of colour, size, design, taste etc

(17a)
TABULATE
=Central Bank=
(i) Work for the public welfare and economic development of a country. A central bank is governed by the government of a country.
(ii) Controls and regulates the entries banking system of a country.
(iii) Does not deal directly with the public. It issue guidelines to commercial banks for the economical development of the country.
(iv) Issues currency and control the supply of money in the Market.
(v) Acts as a state owned institution.
(vi) Act as a custodian of a foreign exchange of the country.
(vii) Act as a banker to the Government
(viii) Controls credit creations in the economy, thus acts as a clearing house of other banks

=Commercial Bank=
(i) Operates for Profit Motive. The Majority of Stake is held by the government as well as the private sector.
(ii) Operates under the direct control and supervision of the central bank.
(iii) Deals directly with the Public. It serves the financial requirement of the public by providing short and medium terms loans and depositing and securing money that can be drawn on demand.
(iv) Does not Issue currency, but only adds to the approval of the central bank.
(v) Acts as a state or private owned institution.
(vi) Perform foreign exchange business only on the approval of the central bank.
(vii) Acts as agents of the central bank.
(viii) Acts as a clearing house only as a agent of the central bank.

(17b)
(i) Open market operation
(ii) 'copied from e x p o c o d e . n e t free' Liquidity ratio/Cash rate
(iii) Bank rate
(iv) Special deposit

(i) Open market operation(OMO): This is the purchase or sale of securities on the open market so as to expand it restrict the volume of money in circulation. The central bank applies this policy with the aim of regulating the volume of money in circulation

(ii) Liquidity ratio/Cash rate: The commercial banks are mandated by the government to keep a special proportion, e.g 25% of their total deposit with the central bank in order to control their volume of credit.

(iii) Bank rate: Bank rate is the minimum rate of interest charged by the central bank for discounting the bill of exchange. By lowering or raising the rate, the central bank can control the activities of the commercial banks.

(iv) Special deposit: Special deposit is also an instrument of monetary policy which is used to restrict lending. The central bank can order the commercial banks for a special deposit, usually, a percentage of the banks deposits, to be made with it.

(18a)
Economic integration involves agreements between countries that usually include the elimination of trade barriers and aligning monetary and fiscal policies, leading to a more inter-connected global economy. Economic integration is consistent with the economic theory, which argues that the global economy is better off when markets can function in unison with minimal government intervention.

(18b)
(i) Free trade: Tariffs (a tax imposed on imported goods) between member countries are significantly reduced, some abolished altogether. Each member country keeps its own tariffs regarding third countries.

(ii) Political union: Represents the potentially most advanced form of integration with a common government and where the sovereignty of a member country is significantly reduced.

(iii) Common market: Services and capital are free to move within member countries, expanding scale economies and comparative advantages. However, each national market has its own regulations, such as product standards.

(iv) Economic union: All tariffs are removed for trade between member countries, creating a uniform (single) market. There are also free movements of labor, enabling workers in a member country to move and work in another member country.