2024 NECO GCE ECONOMICS: 2024 NECO GCE ECONOMICS QUESTIONS AND ANSWERS (6401)

(1a)
At equilibrium price Qd = Qs
50-5p = 15p+10
50-10 = 15p+5p
40 = 20p
p = 40/20 = 2

At equilibrium quantity
Qd = 50-5p
Qd = 50-5(2)
Qd = 50-10
Qd = 40

(1b)
Qd = 50-5(3)
Qd = 50-15
Qd = 35
Qs = 15p+10
Qs = 15(3)+10
Qs = 45+10
Qs = 55
:. Excess supply = Qs - Qd
= 55-35 = 20

(5a)
Socialist economy is the system under which economic system is controlled and regulated by the government so as to ensure welfare and equal opportunity to the people in a society.

(5b)
-ADVANTAGES-
(i) Proper Planning: In order to solve various problems, which arise from time to time, there is proper economic plan in this type of economy. Thus, with the help of economic plans socialist economy will adopt the balanced development strategy.

(ii) Proper Utilisation of Resources: Under this economy, all types of natural resources are utilized in a most organized manner. Its main objective is to exploit these resources for the welfare of society.

(iii) No Labour Exploitation: There is only one class in a socialistic economy hence there is no question of exploitation.
There are no concept of strikes and lock-outs. Everybody works in a well-knit family way.

-DISADVANTAGES-
(i) Loss of Consumer Sovereignty: A consumer has no choice of his own, he 'copied from e x p o c o d e . n e t free' acts as a mere slave under this system. Government produces goods and services keeping in view the needs of the people.

(ii) Rigid Economy: Socialist economy is very rigid and not susceptible to change according to requirements. Hence people work like a machine and never get any incentive to work.

(6a)
Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents.

(6b)
(i) The principle of Equity: The government should exercise equity while designing a good tax system. Individuals should be tasked based on the amount of income they earn. Those that earn a lot of money should be taxed based on the large income earned an individual who earns less amount of money should be tax proportional to the income earned.

(ii) The principle of Certainty: The amount to be charged should be certain. The amount should be well known by the payee so that he/she can prepare his /her budget without making effectively. The government should also be certain on the way in which the tax will be collected if it will be at the end of the month, beginning or n a daily basis. The certainty principle also allow the government to determine the amount of money that will be collected during given times

(iii) The principle of Flexibility: A good tax system should be flexible in order to meet the needs of the society. The amount of tax charged should not be the same all year round. 'copied from e x p o c o d e . n e t free' When the government is in a boom economic cycle, the government should lower the amount of tax for other social benefits. When in Depression, the government may increase the amount of tax charged in order to raise maximum funds to finance its projects.

(iv) The economic principle: The primary objective of taxation is to raise money for the government to finance its projects. Therefore, the administrative cost of collecting the tax should not surpass the amount to be earned. If so, the government will have diverted from its primary objective.

(7a)
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

(7b)
(i) Product Method
(ii) Income Method
(iii) Expenditure Method

(i) Product method: In this method, national income is measured as a flow of goods and services. We calculate money value of all final goods and services produced in an economy during a year. Final goods here refer to those goods which are directly consumed and not used in further production process.

(ii) Income Method: Under this method, national income is measured as a flow of factor incomes. There are generally four factors of production labour, capital, land and entrepreneurship. Labour gets wages and salaries, capital gets interest, land gets rent and entrepreneurship gets profit as their remuneration.

(iii) Expenditure Method: In this method, national income is measured as a flow of expenditure. GDP is sum-total of private consumption 'copied from e x p o c o d e . n e t free' expenditure. Government consumption expenditure, gross capital formation (Government and private) and net exports (Export-Import).

(10)
(i)Technical Assistance: The IMF is also performing an useful function to provide technical assistance to the member countries

(ii)Reducing Tariffs: The Fund also aims at reducing tariffs and other restrictions imposed on international trade by the member countries so as to cease restrictions of remittance of funds or to avoid discriminating practices.

(iii)General Watch: The IMF is also keeping a general watch on the monetary and fiscal policies followed by the member countries to ensure no flouting of the provisions of the charter.

(iv)Credit Facilities: IMF is maintaining various borrowing and credit facilities so as to help the member countries in correcting disequilibrium in their balance of payments.

(v)Stabilize Economies: The IMF has an important function to advise the member countries on various economic and monetary matters and thereby to help stabilize their economies.

(12)
-Positive-
(i)Largest Foreign Exchange Earner: It earns more foreign exchange than any other sector about 90% of Nigeria foreign exchange is from petroleum which has increased the country’s foreign investments etc.

(ii)Increase In Government Revenue: The government earns more money from royal, oil petroleum, profit tax & company income tax with which it provides infrastructural facilities like road, water, electricity etc for the people.

(iii)Provision Of Domestic Energy/Power Requirement: Petroleum has provided it’s products like kerosene, gasoline, diesel oil etc, which serves as source of energy. In other words it has led to the establishment of petrochemical industry in the country and some other allied industries such as liquified natural gas industries.

-Negative-
(i)Corruption: Huge revenue from oil created the illusion of wealth which fueled fraud and embezzlement of government funds by officials through free and careless award of contracts, inflation of project costs, kick backs etc.

(ii)Mono-Product 'copied from e x p o c o d e . n e t free' Economy: One easy revenue and foreign exchange derived from petroleum other sectors of the economy have benn neglected leading to the country becoming a mono-cultural economy. This makes the economy very vulnerable to international manipulations of oil quota allocation supply and prices fluctuation.