2024 NECO ECONOMICS: 2024 NECO ECONOMICS QUESTIONS AND ANSWERS (6491)

(1a)
(i) Population of children = 162/360 × 140 = 63million

(ii) Population of old people = 108/360 × 140 = 42million

(iii) Active population = 90/360 × 140 = 35million

(iv) Dependent population = Population of children + Population of old people = 63,000,000 + 42,000,000
= 105,000,000
= 105million

(1b)
(i) The demand for goods and services required by the youths and old ones because they form the large percentage of the population

(ii) If the items required by the young and old ones are not produced locally, there will be increased importation and resultant strain in the balance of payment

(iii) Low level of savings and investment because of the high dependency ratio

(iv) Increased taxation and borrowing by government to meet increased demand for consumable items because the taxable population is small

(v) High prospective labour force because if the large proportion of young ones

(3a)
Wants are the insatiable desire or need by human beings to own goods or services that give satisfaction. Human wants or needs are many and are usually described as insatiable because the means of satisfying them are limited or scarce.

(3b)
Scarcity is the limited supply of resources which are used for the satisfaction of unlimited wants. Scarcity is the inability of human beings to provide themselves with all the things they desire or want. These resources are scarce relative to their demand.

(3c)
Choice refers to a system of selecting or choosing one out of several alternatives. Choices arise as a result of numerous human wants and the scarcity of the resources used in satisfying these wants. Choice, therefore, arises as a result of scarcity of resources.

(3d)
Scale of preference refers to a list of unsatisfied wants arranged in the order of their relative importance. It is a list showing the order in which we want to satisfy our wants arranged in order of priority. On the scale of preference, the most pressing wants come first and the least pressing ones come last.

(3e)
Opportunity cost is an expression of cost in terms of forgone alternatives. It is the satisfaction of one's want at the expense of another want. It refers to the wants that are left unsatisfied to satisfy another more pressing need.

(4)
(i) Allocation of resources: The study of economics enables the government to allocate scarce resources to various sectors of the economy.

(ii) Development of programmes: It also enables the government to develop certain programmes that are beneficial to the people.

(iii) Rational decision: Economics enables individuals to choose certain wants among the numerous needs, using their scarce resources.

(iv) Preparation of budget: Economics assists the government to determine the expected income and expenditure of a country.

(v) Solutions to economic problems: Economics also enables individuals, firms and governments to solve their problems using various principles of the subject

(6a)
Monopoly may be defined as a market situation where there is only one producer or supplier of a particular good or service that has no substitute. The monopolist has the power to influence the price of goods to his favour. The goods sold by a monopolist is normally differentiated.

(6b)
(i)Act of Parliament: This is a legal instrument by government, conferring special monopoly on some organisations to produce or supply certain goods or services, e.g. public corporations.

(ii)Patent Law: This law confers on a firm special privilege to protect its new invention and it tends to scare away other competitors.

(iii) Level of technology: When a firm develops high level of technology,which makes goods cheaper, this may force other competitors out of production

(iv) Effective advertising: The success of a firm in effective advertising may force other competitors out of business

(7a)
Co-operative society is defined as a voluntary business organisation in which a group of individuals with common interests pool their resources together to promote the economic welfare of their members in the production, distribution and consumption of goods and services.

(7b)
(i) Production co-operative society:
Producers co-operative society is formed by producers of similar products who organise co-operative production and undertake joint marketing of their products on a wholesale or retail basis. They share useful information among members.

(ii) Consumers co-operative society: Consumers co-operative society is owned and operated by a group of ultimate consumers who pool their resources together to purchase goods and services in large quantities and distribute them mainly to its members. The operating policies used are open membership, democratic control, limited interest paid on capital invested, and proportinate dividends based on their level of purchases or patronage.

(iii) Wholesale co-operative society: Wholesale co-operative society is formed by small-scale wholesalers who purchase goods in bulk from the manufacturers at reasonable prices and sell in small quantities to retail co-operatives. They can raise large sums of money to finance wholesale purchases when they come together. As an entity, they have the better bargaining power to purchase in bulk from the manufacturers.

(9a)
Demand may be defined as the ability and willingness to buy a specific quantity of goods and services at a given price and at a particular period of time

(9b)
(i) Population
(ii) Income of the consumer
(iii) Changes in taste of consumer
(iv) Period of festivals

(i) Population: Increase in population in an area will lead to high demand for commodities and vice versa

(ii) Income of the consumer: The higher the Income of a consumer, the higher the quantity of commodities that he/she will demand and vice versa

(iii) Changes in taste of consumer: If consumers change their taste for a particular commodity, the demand for that commodity will also change

(iv) Period of festivals: It is well known that people demand for more of specific commodities during certain festivals