2018/19 JUNE/JULY NECO ECONOMICS QUESTIONS AND ANSWERS

*ECONOMICS*

Economics objective

1-10AEDADCEAED

11-20BEEABDA

21-30 CDEAEDA

31-40 CABE

41-50EBAEAACBEB

51-60DDAACCBEBC

*3a*

Production is the process of transforming inputs(raw materials) into finished products and the distribution of the products in order to satisfy human wants and to earn a living

 

*3b)* Factors That Determine The Volume Of Production:

1. Availability of Natural Resources: The volume production depends on the quantity and quality of the natural resources available in a  country. If a country has large Deposits of natural resources like fertile soil, perennial rivers, extensive forests, long sea coasts, rich minerals etc, volume of production will be high. The larger the availability of resources, the larger will be the volume.

2. Availability of capital: Capital is an important factor in determining the volume of production. Capital includes both fixed capital and variable capital like machinery, buildings. raw materials, electricity etc. The capital depends on the level of savings and investment and banking facilities.

3. Technology: Technology is another determinant of the volume of production. If the people possess technical knowledge, education and training, they can produce diverse goods. They can make inventions and adopt latest technology for producing goods and services. Besides, they also increase the quantity and quality of goods. Hence the nature of technology influences the volume of manufacturing or production.

4. Factors of production: Another determinant of Volume of manufacturing or production is the factors of production. Factors of production comprise labor, capital and organization. The quantity and quality will influence the volume of production. If these are plenty, then production of goods on large scale is possible.

 *6a.*

A means by which governments finance their expenditure

by imposing charges on citizens and corporate entities.

Governments use taxation to encourage or discourage

certain economic decisions.

6b)

Choose 4

1. Tax Evasion:

Probably the biggest disadvantage of direct taxes is that it leads to tax evasion and corruption in a society. If the system is not water-tight, there is always a chance of tax evasion by manipulating the law and using subtle techniques. Moreover, the more blatant way is to suppress the profits by showing wrong statements of profits, which reduces the tax rate imposed on the person. Unlike indirect taxes, there is always a chance of tax evasion in direct taxes.

2. Creates Social Conflict:

Since not everybody has to pay direct taxes, it is often responsible for creating social conflict amongst societies. It also leads to crimes, social injustice and a sense of inferiority among different groups of people.

3. Inconvenient:

Another great