WAEC 2019 - ECONOMICS ANSWER

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ECONOMICS OBJ:
1-10: DCCCBBCDCA
11-20: CBBCBBCCBC
21-30: CCBCCCBCAC
31-40: CDCDADDBCD
41-50: CBACACDACC
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ANSWERS:


(1ai)
Price = $20
Quatity = 50kg

(1aii)
The firm's profit = Total revenue - total cost = TR - TC
TR = price x quatinty sold
= $20 x 50
= $1000
TC = $12 x 50
= $600
Profit = $(1000-600)
= $400

(1aiii)
Normal profit

(1b)
Because it is equal to demand curve of a firm and demand of perfectly elastic
OR
AR = MR = MC = Demand & supply Curve

(1c)
(i) Both are falling at initial stage
(ii) Both of them are rising after they intersect at price of $10 and quantity of 40kg

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(2a)
Balance of trade = Total visible
Export – total visible = Import
Visible Exports = $m
Agriculture = 200
Minefal produce –
Capital goods –
Total $500

Visible Import: - $m
Agriculture –
Mineral produces –
Consumer goods 250
Capital goods 400
Total $650

Therefore Balance of trade = $500 - $650 million
Balance of trade = $150 million
It is unfavourable Balance of Trade because total visible export is less than the total visible import

(2b)
Invisible Trade Balance = Total Invisible Export – total
Visible Import –
Invisible Export - $m
Insurance – 25
Banking – 30
Transportation – 25
Total $80

Invisible Import - $m
Insurance - 50
Banking – 75
Transportation – 85
Total = $210
Therefore invisible Trade balance = $80 - $ 210
= -$130
i.e - $130 million
it is an unfavourable invisible trade balance total invisible import is more than total invisible export

(2c)
Balance of current Balance = value of total Export – Value of total Import
Total Export - $m
Agriculture – 200
Mineral produce – 300
Consumers goods –
Capital goods –
Insurance - 25
Banking – 30
Transportation – 25
Total = $580

Total Imports: - $m
Agriculture –
Mineral produce –
Consumer goods 250
Capital goods - 400
Insurance - 50
Banking - 75
Transport - 85
Total = $860
Therefore 580 – 860 = $280 million
It is a deficit current Account balance

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(3a)
Distribution of goods is a process of making a product being produced or service available for a consumer or business user who needs it. This can be done directly by the producer or service perovider or using indirect channels with distributors or intermediaries.

(3aii)
Distribution channel is a chain of businesses or intermediaries through which goods or services pass until it reaches the final buyer or end of consumers. This includes wholesalers, retailers, distributors and even the internet.
Producer -> Wholesaler -> Retailer -> Consumer

(3b)
Consumers' cooperative society is a society owned and operated by a grouo of ultimate consumers who pull teir resources together to purchase goods and services in large quantities and distribute them mainly to its members.

(3c)
(i) To meet the need of consumers in quality goods and services at an affordable price
(ii) To produce goods, to provide households and production services including credit and issuance.
(iii) To provide services to its members
(iv) To raise the standard of living in a particular area or country

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(5a)
Joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

(5b)
(i)Limited Liability
(ii)Restricted Trade of Shares
(iii)Separate Personality

(5c)
(i)private foreign finance (external borrowing)
(ii)local private finance from banks
(iii)direct government finance, in the form of equity, credit, or subsidy capital


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(8a)
Public debt refers to the debt of a country owes to its citizens or other countries or organization such as International Monetary Fund(IMF) and World Bank

(8b)
(i) To finance budget deficit
(ii) To provide employment opportunities
(iii) To finance huge capital projects such as railways,roads,electricity etc

(8c)
(i) A large domestic debt will limit influence the distribution of income of the people
(ii) It can reduce the availability of foreign exchange in the form of depleted foreign reserves
(iii) If a large internal debt is sustained by high rate of interest it will reduce private investment on capital goods

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ANSWER COMPLETED
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