2023 NECO ECONOMICS ANSWERS

Obj:
01-10 EBBEDCADAC
11-20 CCABCDBEAA
21-30 BCCCBBAECA
31-40 ACEAADDAEC
41-50 EEEDDBDCBE
51-60 BDDAECCBEC

COMPLETED ✅????
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SECTION A

INSTRUCTIONS:- Answer any one(1) Question from the SECTION A and any four(4) Questions from SECTION B

(1a)

2000: (85-105)/105) * 100 = -19.05% 2001: (65-85)/85) * 100

= -23.53% 2002: (70-65)/65) * 100 = 7.69%

(b)

1999: (45/105) * 100 = 42.86%

2000: (25/85) * 100 = 29.41%

(c)
CHOOSE ANY TWO(2)

(I) Economic growth: A larger working population means more people contributing to the economy through consumption and production, which can lead to economic growth.

(ii) Tax revenue: The working population contributes to the government’s income through taxation. Higher employment rates usually lead to higher tax revenue.

(iii) Social stability: Employment is associated with financial stability and social structure, which can contribute to societal stability.

(iv) Innovation and development: A larger working population also means more minds to innovate and contribute to the overall development of the society.
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(2a)
View the image below ????

(b) The coefficient of the price elasticity of demand (PED) is calculated by using the following formula:

PED = (% change in Quantity Demanded) / (% change in Price)

The percentage change in quantity demanded = (150 – 100) / 100 * 100% = 50%

The percentage change in price = (80 – 200) / 200 * 100% = -60%

So, PED = 50% / -60% = -0.83

(c) The nature of the elasticity here is inelastic since the absolute value of the PED is less than 1. This means that the demand for milk is not very responsive to changes in price.

Two reasons could be:

Milk is a necessity for many households, so demand remains relatively stable even when the price changes.There are not many substitutes for milk, which means consumers cannot easily switch to another product if the price of milk changes.

(d) Three factors that affect demand are:

Income: As income increases, the demand for a normal good also increases.Price of related goods: If the price of a substitute good increases, the demand for the good in question increases. Similarly, if the price of a complementary good increases, the demand for the good in question decreases.Consumer preferences: Changes in tastes and preferences can cause demand to increase or decrease. For example, a public health campaign promoting the benefits of drinking milk could increase demand.
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SECTION B

INSTRUCTIONS:- Answer four (4) Questions in this section

(4a) An entrepreneur is an individual who starts and operates a business, often taking on considerable risk to do so. They are typically seen as innovators, bringing new ideas, products, services, or business processes to the market. Entrepreneurs play a key role in any economy, ready to make the most of a business opportunity.

(b)
CHOOSE ANY FIVE(5) OF YOUR CHOICE

(i) Innovation: Entrepreneurs are often the drivers of innovation, bringing new ideas and methods to businesses and industries, thus fostering growth.

(ii) Job Creation: As businesses expand, they create more employment opportunities, contributing to economic growth.

(iii) Economic Stimulus: Entrepreneurs often stimulate economic growth by introducing innovative products and services that create new markets.

(iv) Risk-Taking: Entrepreneurs are willing to take on significant risks for their businesses. This risk-taking can lead to business expansion and job creation.

(v) Wealth Creation: Successful entrepreneurs increase their personal wealth and the wealth of their investors, leading to greater business and economic growth.

(vi) Competition: The presence of entrepreneurs stimulates competition, which can lead to improved products and services.

(vii) Community Development: Successful businesses can contribute to local communities through philanthropy and corporate social responsibility.

(viii) Standard of Living: By creating innovative products and services, entrepreneurs improve the standard of living of people.

(ix) Investment Opportunities: Entrepreneurs create opportunities for investors, which brings more capital into businesses, further enabling growth.

(x) Global Trade: Entrepreneurs can increase international trade by expanding their businesses beyond their home countries. This can lead to economic growth both at home and abroad.
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(5a) Specialization is the process by which individuals, firms, or countries focus on producing a limited range of goods or services in which they have a comparative advantage. It allows for increased efficiency and productivity, as each entity can devote its resources and skills to tasks where they are most competent.

(b)
????ADVANTAGES OF DIVISION OF LABOR????

CHOOSE ANY THREE (3)

(I) Increased Productivity: By dividing work into specific tasks, workers can focus on what they do best, leading to increased efficiency and output.

(ii) Skill Development: Workers can become highly skilled at their specific tasks, enhancing the overall quality of the product or service.

(iii) Time-Saving: When tasks are divided, workers don’t have to shift between different types of tasks, which saves time and increases productivity.

(iv) Lower Costs: Efficiency gains can lead to lower production costs, which can in turn lead to lower prices for consumers.

(v) Innovation Opportunities: Division of labor can also lead to innovation, as workers may discover new and better ways of performing their specific tasks.

(vi) Economies of Scale: Large-scale production can be achieved which often leads to economies of scale, thus reducing the cost per unit of output.

????DISADVANTAGES OF DIVISION OF LABOR????

CHOOSE ANY TWO(2) OF YOUR CHOICE

(I) Worker Dissatisfaction: Doing the same task over and over can be monotonous and lead to job dissatisfaction and lower motivation among workers.

(ii) Dependence on Others: If one worker in the process fails to complete their task, it can halt the entire production process.

(iii) Lack of Versatility: Workers might become too specialized in one task and may find it difficult to adapt to new tasks or jobs.

(iv) Risk of Unemployment: If the demand for a particular product or service decreases, workers specialized in that area might face unemployment.
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(6a) Economic integration can be define as the unification of economic policies between different states, regions, or countries through the elimination of trade barriers and the coordination of monetary and fiscal policies.

(b)
CHOOSE ONLY FIVE(5) OF YOUR CHOICE

(I) Free Trade: Economic integration allows countries to trade with each other with reduced or no tariffs, making goods cheaper for consumers and expanding markets for producers.

(ii) Economies of Scale: With a larger market, companies can produce goods more efficiently, lowering production costs, and possibly reducing prices.

(iii) Increased Competition: Economic integration encourages healthy competition, leading to innovation and improvement in product quality.

(iv) Resource Allocation: Countries can specialize in the production of goods and services where they have a comparative advantage, increasing efficiency.

(v) Economic Stability: Integrated economies can be more resilient to economic shocks as risk is spread across the countries.

(vi) Political Cooperation: Economic integration often leads to better political cooperation and can contribute to regional stability.

(vii) Increase in Investment: The large, open markets created by economic integration can attract foreign direct investment.

(viii) Labor Mobility: Economic integration agreements often allow workers to move freely between countries, helping to alleviate labor shortages and balance employment rates.

(ix) Cultural Exchange: As countries integrate economically, they also often experience an increase in cultural exchanges, promoting understanding and cooperation.

(x) Income Equality: Economic integration can help to balance income distribution by creating new job opportunities and reducing economic disparity.
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(7a) Economic Growth refers to an increase in the country’s capacity to produce goods and services. It’s usually measured by the rate of change in Gross Domestic Product (GDP) *WHILE* Economic Development is a broader concept than economic growth. It not only involves an increase in the output of goods and services but also improvements in aspects like quality of life, social welfare, equitable income distribution, and sustainable environmental practices. It focuses on long-term structural changes in the economy and enhancing the standard of living of its citizens.

(b)
CHOOSE ANY FIVE(5)
(I) Low Per Capita Income: This refers to the average income per person which is generally low in developing economies.

(ii) High Population Growth Rate: Developing economies often experience high population growth rates which can strain limited resources.

(iii) High Dependence on Agriculture: A significant portion of the workforce in developing countries is often engaged in the agricultural sector.

(iv) High Unemployment: Developing economies tend to have high unemployment rates due to a lack of job opportunities or mismatched skills.

(v) Poor Infrastructure: Infrastructure such as roads, utilities, and sanitation often lags behind in developing countries.

(vi) Low Levels of Industrialization: Developing economies are characterized by low levels of industrialization, with a small portion of their GDP derived from the industrial sector.

(vii) Inadequate Access to Quality Health Care and Education: There’s often a lack of access to quality health care and education, which can hinder human capital development.

(viii) High Levels of Poverty: Poverty rates are generally high in developing economies, affecting large sections of the population.

(ix) High Levels of Debt: Developing countries often rely on foreign aid or loans, leading to high external debts.

(x) Inequality: There is often a wide gap between the rich and the poor in developing economies, leading to income and wealth inequality.
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(8)
(a) Consumer Surplus: This is the difference between what consumers are willing to pay for a good or service and the actual price they pay.

(b) Balance of Payment Deficit: This is a situation where a country’s imports (goods, services, or financial assets) exceed its exports. It signifies more money leaving the country than coming in.

(c) Terms of Trade: This refers to the ratio at which a country’s exports are exchanged for its imports. It is an indicator of a nation’s economic health.

(d) Elasticity of Demand: This is a measure of how much the quantity demanded of a good changes when its price changes. If the quantity demanded changes significantly when the price changes, the demand is said to be elastic.

(e) Budget Surplus: A budget surplus occurs when income, typically via taxes, exceeds government spending within a specific period, usually a fiscal year. This allows the government to pay down debt, invest, or save for future spending.
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(10a) Mechanized farming refers to the use of various equipment and machinery to enhance the efficiency and effectiveness of farming practices. This might include the use of tractors, harvesters, irrigation systems, drones for crop monitoring, automated feeders for livestock, and other advanced technology. It replaces manual labor, thus increasing productivity, reducing time and labor costs, and often improving the quality and quantity of the produce.

(b)
CHOOSE ANY FIVE(5)
(i) Employment Generation: Agriculture is the largest employer of labor in Nigeria, providing jobs for millions of citizens and reducing unemployment rates.

(ii) GDP Contribution: As of my knowledge cut-off in 2021, Agriculture contributed about 23.8% of Nigeria’s Gross Domestic Product (GDP), making it a significant player in the economy.

(iii) Foreign Exchange Earnings: Agricultural exports, such as cocoa, palm oil, cashew nuts, and others, earn foreign exchange which helps in balancing the country’s external trade.

(iv) Provision of Raw Materials: Agriculture provides raw materials for industries such as food processing, textiles, and breweries, thus fostering industrial development.

(v) Food Security: By producing food crops, Nigeria can ensure food security and reduce its dependence on food imports.

(vi) Poverty Reduction: By providing income and enhancing livelihoods, agriculture can help reduce poverty levels, particularly in rural areas.

(vii) Revenue Generation: The government generates revenue through taxes and levies on agricultural produce and activities.

(viii) Rural Development: Agricultural activities can stimulate development in rural areas, through the creation of infrastructure, and the reduction of rural-urban migration.

(ix) Socio-economic Stability: By ensuring food and income security, agriculture can promote socio-economic stability and peace.

(x) Environmental Sustainability: Through sustainable agricultural practices, agriculture can contribute to environmental conservation and biodiversity, which have long-term economic benefits.
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(11a) De facto population census refers to the count of all people who are present in a given area at the time of the census, regardless of their usual place of residence. This is more of an ‘actual’ count and can include tourists and transient persons *WHILE* De jure population census refers to the count of all people who have their usual place of residence in a given area, regardless of where they happen to be at the time of the census. This approach tries to count people based on their ‘legal’ residence and can exclude people who are temporarily away.

(b)
CHOOSE ANY FIVE(5)

(i)Logistical issues: Conducting a census requires vast resources and manpower, so logistical problems are common.

(ii) Response rate: Not everyone responds to census surveys or provides accurate information, leading to inaccuracies.

(iii) Political interference: Political figures may try to influence the census for their own benefits, leading to inaccurate counts.

(iv) Cost: A census is expensive to conduct, particularly in large and geographically dispersed countries.

(v) Accessibility: Reaching remote, rural, or conflict areas can be a major challenge.

(vi) Cultural barriers: Some communities may not cooperate with census takers due to cultural or religious beliefs.

(vii) Language barriers: In multicultural societies, language differences can impede data collection.

(viii) Timing and frequency: It can be challenging to conduct the census at a time that accurately reflects the population and to conduct it frequently enough to keep the data up-to-date.
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(12a) Cooperative Society is a voluntary association of individuals united by common economic, social, or cultural needs and aspirations. They come together to form a democratically controlled enterprise.

(b)
CHOOSE ANY five(5)
(I) Personal Savings: This is the most common source of finance for small businesses where the entrepreneur uses their personal savings to start a business.

(ii) Retained Earnings: This is the profit that a company has earned but not yet distributed to its owners. Instead, it’s reinvested back into the business.

(iii) Bank Loans: Banks offer loans which businesses can use to finance their operations. They will have to pay back the loan with interest over a period of time.

(iv) Equity Finance: This involves selling a portion of the business to investors in return for capital. This could be through selling shares to the public (IPO) or private equity investment.

(v) Trade Credit: Suppliers may offer goods or services to businesses on credit. This allows businesses to delay payment, effectively giving them short-term financing.

(vi) Venture Capital: Venture capitalists provide funds to startups or small businesses with high growth potential. In return, they often demand equity in the company.

(vii) Grants: Governments and other organizations often provide grants to support businesses, especially in sectors they wish to encourage.

(viii) Leasing: Rather than purchasing assets outright, businesses can lease them. This allows access to the assets needed for operation without the initial capital outlay.

(ix) Invoice Discounting or Factoring: Businesses can sell their invoices to a third party at a discount to get immediate cash.

(x) Crowdfunding: Crowdfunding platforms allow businesses to raise small amounts of money from a large number of people, typically via the internet.
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