2018/19 WASSCE MAY/JUNE ECONOMICS QUESTIONS AND ANSWERS

*2018 WAEC MAY/JUNE ECONOMICS OBJ AND THEORY*

*ECONOMICS OBJECTIVE*

1-10    AABACDADCA

11-20  DABAABCCCD

21 A 

22 A

23 C

24 B 

25 C 

26 A

27 C 

28  B 

29  C 

30 B 

31 C 

32 D 

33 A 

34 C 

35 D

36B

37 A

38 C

39 C

40 A

41 A

42 D 

43 A 

44 A 

45 D 

46 D 

47 D 

48  A 

49 B 

50 D

(2a)

Pls put in a tabular form:

Under Output(kg):

0, 15, 35, 60, 85

Under variable cost($):

0, 30, 55, 75, 90

Under Total cost ($):

15, 45, 70, 90, 105

Under Total revenue($):

0, 30, 70, 120, 170

(2ai) 

at output 0; marginal revenue (M. R) 

  = $0.00

    at output 15; M.R = TR2-TR1

=30 - 0 = $30.0

   at output 35; M.R = TR3 - TR2

70 - 30 = $40.0

   at output 60; M.R = TR4 - TR3

=120 - 70 = $50.0

   at output 85; M.R = TR5 - TR4

 = 170 - 120 = $50.0

(2aii) 

at output 0, marginal cost (mc) = $0.00

 

at output 15, mc = TC2 - TC1 

     = 45 - 15 = $30.00

at output 35, mc = TC3 - TC2 = 70 - 45 = $25.0

at output 60, mc = TC4 - TC3

= 90 - 70 = $20.0

at output 85, mc = TC5 - TC4

= 85 - 60 = $25.0

(2b)

(i) The firm broke even at output 60kg. 

(ii) The firm made the highest profit at output level 85kg. 

(iii) The firm attained equilibrium at output 35kg. 

(2c) 

The firm operates on a project market structure.

(3a)

Optimum population may be defined as that population which is neither too small nor too large, but when combined with the available resources and given the level of existing technology secure a maximum return per head

(3b)

- It leads to over population; An increasing or large population of a country if not timely controlled will lead to over population

- Increase in government expenditure; The more the population of a country increases, the more the government's expenditure increases

- It may lead to congestion; Increasing population if not controlled will lead to congestion in the area of housing, traffic, schools,etc,

3c) - Family planning; Family planning which involves giving birth to controllable number of children, adopted in a country will help to check of control both growth and over population

- Sex education; Through this, people are taught the implications of involving in any type of sex and how to do it without having unwanted pregnancy

- Public enlightenment; Government can set up public enlightenment committee to enlighten people on the need of population control

=-=-=-=-=-=-=-=-=-==-=-=-=-=-=-=-=-=-=-=

(6a)

Commodity money is money whose value comes from a commodity of which it is made. Commodity moneyconsists of objects that have value in themselves (intrinsic value) as well as value in their use as money.

(6b)

(i)

Double Coincidence of Wants

 

(ii)

Absence of Common Measure of Value

(iii) 

Lack of Divisibility

*6c)*

i)Acceptability:The commodity to be used as money must be generally acceptable to the members of the community in payment or settlement of debt.each members of the community must be confident that each others will accept the commodity in exchange.

iii)Homogeneity or standardised units:Each unit of the commodity used as money must be identical with others.The material for each unit of money must be of the same size, shape, colour and quality.some of the old forms of money were not homogeneous .for example , cow are not identical

iii)Divisiblity:Any commodity to serve as money must be capable of being divided into smaller units.this will make it possible for payment to be made in smaller amounts of money , as desiredThis facilitates small transactions.For example , Nigeria money has two denominators -The naira and kobo.There are notes of N1,000, #500, #200, #100, #50, #20, #10, and #5.

=-=-=-=-=-=-=-=-=-=-=-=-=-==-=-=-=-=-=

(7a)  

The demand schedule, in economics, is a table of the quantity demanded of a good at different price levels. Given the price level, it is easy to determine the expected quantity demanded.

7b) The law of demand states that the higher the price the lower the quantity demanded and the low the price the higher the quantity demanded

7c)(I) Competitive demand; Demand is said to be competitive when a commodity is wanted to satisfy a want in place of another similar commodity

(Ii) Derived demand; This is a situation in which a commodity is wanted not for its immediate satisfaction of want but because of the demand for another commodity

(Iii) Joint Demand; When two or more commodities are wanted to satisfy one want at the same time

(Iv) Composite demand; Demand is said to be composite when a commodity is wanted to satisfy different wants for instance, palm oil may be demanded for cooking food,manufacturing of soap and pomade

=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

(8a)

Tax is a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

*(8Bi)*

*Progressive Tax:*
This is the tax system graduated in such way that a high icome earner pays more tax in absolute terms and a higher percentage on his income as tax than a low income earner.

*Proportional Tax*
This is a tax system whereby all income earners pay the same percentage of their incomes as tax.

*Regressive Tax*
This is the tax system whereby a low income earner pays a higher percentage of his income as tax than a high income earner