2020 NECO ECONOMICS THEORY QUESTIONS VERIFIED EXPO

Section II [Essay]

Answer any FIVE questions.

Write your answers on the answer booklet provided.

1(a) What is a centrally planned economy?
(b) Outline any four features of a capitalist economy?

2. The cost function of a firm which produces plastic plates is shown in the table below. Use the information in the table to answer the questions that follow:

(a) (i) What is Average Fixed Cost (AFC)?
(ii) Calculate the average fixed cost at output levels 1 to 6.
(b) Calculate the values P, Q, R and S.
(c) Why does the average fixed cost decline as output increases?

3(a) What is:
(i) Peasant farming;
(ii) Commercial farming?
(b) Describe five ways in which agriculture contributes to the economic development of your country?

4(a) Distinguish between small scale production and large scale production.
(b) Describe any five internal economies of large scale production.

6(a) What is the difference between the following terms?
(i) ad valorem tax and specific tax;
(ii) a progressive tax and a regressive tax.

(b) Give any three reasons why the government of your country imposes indirect taxes.

7(a) In what two ways does agriculture contribute to the development of your country’s economy?
(b) Recommend any three measures that can be taken to boost large scale farming in West Africa.

8(a) What is Central Bank?
(b) Distinguish between bank and non-bank financial institution
(c) Outline any four contributions of financial institutions to the economic development of your country

9(a) What is public debt?
(b) Explain any four reasons why countries in West Africa continue to incur debts.

10(a) What is export promotion?
(b) Describe any four measures the government of your country can adopt to encourage production for export.

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