ECONOMICS OBJ
01-10: BDBCABDADC
11-20: CDBDDACABD
21-30: CBCBDAADBC
31-40: CBADCDCDAD
41-50: BCABCDABCC
COMPLETED
(1ai)
The equilibrium price before the tax is $80.
(1aii)
At the equilibrium price of $80 (where S₀ intersects D), the quantity demanded and supplied is 60 units.
(1aiii)
The new equilibrium price is $100.
(1aiv)
At the new equilibrium price of $100, the quantity demanded and supplied is 54 units.
(1bi)
-Price after tax = $100
-Sellers receive = $75 (where S₁ intersects the original supply curve S₀ at the new quantity)
Tax per unit = $100 – $75 = $25
(1bii)
The amount retained per unit by the sellers after tax is the price that sellers receive after tax. This is where the new supply curve (S₁) intersects the original supply curve (S₀) at the new quantity of 54 units, which is $75.
(1ci)
-Buyers pay more than the original price after tax.
-Increase in price for buyers: $100 (price after tax) – $80 (price before tax) = $20
Percentage of the tax paid by buyers per unit:
(Buyer’s portion of the tax)/(total tax) × 100
(20/25) × 100 =80%
(1cii)
-Sellers receive less than the original price after tax.
-Decrease in price for sellers: $80 (price before tax) – $75 (price after tax) = $5
Percentage of the tax paid by sellers per unit:
(Seller’s portion of the tax)/(total tax) × 100
(5/25) × 100 =20%
(4a)
Distribution refers to the process of making products or services available to customers through various channels, such as retailers, wholesalers, and agents.
(4b)
(i)Convenience: Retailers provide a convenient location for consumers to purchase products, often with extended hours and a wide range of products under one roof.
(ii)Product Information: Retailers can offer expert advice and product knowledge, helping consumers make informed purchasing decisions.
(iii)After-Sales Support: Retailers may provide after-sales support, such as warranties, repairs, and returns, which can enhance the overall consumer experience.
(4c)
(i)Increased Costs: Middlemen, such as wholesalers and distributors, can add to the cost of products, reducing profit margins for manufacturers and increasing prices for consumers.
(ii)Reduced Control: Manufacturers may have limited control over the distribution process and the final sale of their products when using middlemen.
(iii)Potential for Stockouts: Middlemen may not always maintain adequate inventory levels, leading to stockouts and lost sales for manufacturers and retailers.
(7a)
(PICK ANY ONE)
A Central Bank is a government-owned or controlled institution responsible for regulating a country’s monetary policy, maintaining financial stability, and supervising the banking system. Examples of Central Banks include the Federal Reserve in the United States, the Bank of England in the United Kingdom, and the Central Bank of Nigeria.
OR
A central bank is a government-owned or independent entity responsible for overseeing a country’s monetary policy, regulating its financial system, and maintaining financial stability.
(7b)
(PICK ANY THREE)
(i) Open Market Operations (OMO): Selling government securities on the open market to absorb excess liquidity and reduce money supply.
(ii) Increase in Reserve Requirement: Raising the minimum reserve requirement for commercial banks, forcing them to hold more reserves and reduce lending, thereby reducing money supply.
(iii) Increase in Interest Rates: Raising interest rates to make borrowing more expensive, reducing demand for loans, and decreasing money supply.
(iv) Sale of Government Bonds: Selling government bonds to absorb excess liquidity and reduce money supply.
(v) Moral Suasion: This is the act of using persuasion and influence to encourage commercial banks to reduce lending and curb money supply.
(7c)
(i) Banker to the Government:
The Central Bank acts as the government’s bank, providing services such as: Managing government accounts, Handling government finances, Advising on economic policy, Implementing monetary policy.
(ii) Banker to Commercial Banks:
The Central Bank acts as the bank for commercial banks, providing services such as: Holding reserve deposits, Providing liquidity, Supervising and regulating banking activities, Acting as a lender of last resort.
(iii) Lender of Last Resort:
The Central Bank acts as the lender of last resort by providing emergency loans to commercial banks facing liquidity crises, preventing bank failures and maintaining financial stability.
(5a)
(i) Labor Force:
The labor force refers to the number of people in a country or region who are employed or actively seeking employment. It includes individuals who are willing and able to work, and is typically measured by the number of people in the workforce, usually aged 15-64.
(ii) Overpopulation:
Overpopulation occurs when a country or region has a population that exceeds the available resources, leading to negative impacts on the environment, economy, and quality of life. This can result in issues like poverty, unemployment, and resource depletion.
(iii) Mobilization of Labour:
Mobilization of labour refers to the process of encouraging people to move from one region or industry to another to meet labor demands. This can be done through policies like training programs, relocation incentives, and infrastructure development.
(iv) Optimum Population:
Optimum population refers to the ideal population size that allows for the most efficient use of resources, maximizing economic growth and well-being while minimizing negative impacts on the environment and quality of life.
(5b)
(PICK ANY FOUR)
(i) High Birth Rate: A high number of births per woman, often due to cultural or religious beliefs, lack of access to contraception, or limited education.
(ii) Improved Healthcare: Advances in medicine and sanitation lead to a decrease in mortality rates, contributing to population growth.
(iii) Increased Food Availability: Improved agricultural productivity and distribution, reducing hunger and malnutrition, allowing more people to survive and thrive.
(iv) Migration: Movement of people from rural to urban areas or from one country to another, contributing to population growth in certain regions.
(v) Decline in Death Rate: Reduction in mortality rates due to advances in healthcare, leading to an increase in population.
(vi) Lack of Family Planning: Limited access to or awareness of contraception methods, leading to unintended pregnancies and population growth.
(6a)
(i) Industrialization: The process of transforming an economy from primarily agricultural to one dominated by industry, characterized by the development of manufacturing, infrastructure, and technological advancements.
(ii) Mineral resources: Naturally occurring inorganic substances with economic value, such as metals, ores, and minerals, extracted from the earth’s crust.
(6b)
(i)Generation of foreign exchange earnings through exports.
(ii)Creation of employment opportunities in the mining sector.
(iii)Increased government revenue through royalties and taxes.
(6c)
(i)Improved standard of living through increased access to goods and services.
(ii)Diversification of the economy, reducing dependence on a single sector.
(iii)Development of infrastructure, such as roads, energy systems, and transportation networks.