WAEC GCE 2024 ECONOMICS ANSWER

ECONOMICS OBJ
1-10: BDCBCBDBBC
11-20: ABCABDBBAC
21-30: ADCCCDBADC
31-40: BDCCABDDCA
41-50: BCADCCCCDB



(2)



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(3a)
Producer goods are goods used by businesses in the production of other goods and services. They are not directly consumed by individuals but are essential for manufacturing or providing other products. Eg machines, such as a lathe used in a factory, raw materials like steel, supplies like computers and printers.

Consumer goods are goods that individuals or households purchase for personal use or consumption. These goods are not used to produce other goods but are directly consumed by people. Eg food items like bread and fruits, Clothing such as shirts and shoes, electronics like mobile phones or televisions, and furniture such as beds and chairs.

(3b)
(i) Production refers to the process of creating goods and services that are useful to individuals, businesses, or society. It involves the transformation of raw materials or inputs, such as labor, capital, and land, into finished products or services. For example, a car manufacturing company takes raw materials like steel, rubber, and plastic and uses labor, machinery, and technology to produce a car that can be sold to consumers.

(ii) Distribution is the process of delivering goods and services from producers to consumers. It involves the movement of products through various intermediaries, such as wholesalers, retailers, and transportation networks, to make them available in the market. For example, once a car is manufactured, it is distributed through dealerships or retailers, allowing consumers to purchase it.

(iii) Consumption refers to the use of goods and services by individuals or households. It occurs when people purchase and use the products for their personal satisfaction or needs. For example, after a consumer buys a car, they use it for transportation, which is an act of consumption. Consumption drives demand in the economy, influencing the production and distribution processes.

(3c)
Production is the starting point of the cycle. It involves creating goods and services by utilizing resources like labor, capital, and raw materials. The products made through production are then prepared for sale and distribution.

Distribution follows production and involves the movement of goods from producers to consumers. Goods and services are transported through various intermediaries, such as wholesalers, retailers, and transportation networks, to reach the markets where consumers can purchase them.

Consumption is the final stage, where individuals or households purchase and use the goods and services. Consumption creates demand, which in turn drives production to meet the needs and wants of consumers.

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(5a)
(i) Fixed Costs: Rent, property tax, interest on loans, advertisement, depreciation allowance, salaries of managers, property insurance premium.

(ii) Variable Costs: Wages, raw materials, excise duty, fuel.

(5b)
(i) Fixed costs are expenses that do not change with the level of production or output. These costs are incurred even when production is zero. Examples: Rent, salaries of permanent staff, insurance, and property tax.


(ii) Variable costs change directly with the level of production or output. As production increases, variable costs rise.
Examples: Costs of raw materials, wages of temporary workers, and fuel.


(iii) Total cost is the sum of fixed costs and variable costs at each level of output
TC=FC+VC


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(6a)
(PICK ANY ONE)
The Supply of money is the total stock of money in circulation within an economy at a given point in time, including cash held by the public and deposits accessible in financial institutions.

OR

The supply of money refers to the total amount of money available in an economy at a specific time.

(6bi)
The general price level is influenced by the quantity of money in circulation because an increase in money supply leads to higher demand for goods and services.
This relationship is summarized by the Quantity Theory of Money, which states that changes in the money supply directly affect price levels if economic output remains constant.

(6bii)
The general price level rises when the quantity of money in circulation increases and falls when it decreases, assuming the supply of goods and services remains constant.

(6biii)
The general price level is influenced by the volume of goods and services through the law of supply and demand. A higher volume of goods and services generally results in lower prices, as more products are available to consumers. On the other hand, when production decreases and fewer goods and services are available, prices tend to rise because consumers compete for limited resources.

(6c)
(PICK ANY THREE)
(i) Income Level: Higher income levels generally increase the precautionary demand for money. Individuals with more disposable income are more likely to set aside funds for unforeseen events such as medical emergencies, unexpected repairs, or other emergencies.

(ii) Economic Uncertainty: In times of economic instability or financial market volatility, people are more likely to hold onto liquid assets as a precaution against potential income loss, job uncertainty, or economic downturns.

(iii) Interest Rates: The opportunity cost of holding money is influenced by interest rates. When interest rates are low, the cost of holding cash is less, encouraging people to hold more money for precautionary reasons. Conversely, higher interest rates can reduce the precautionary demand for money as individuals seek to invest in interest-bearing assets instead.

(iv) Access to Credit: When individuals have easier access to credit (e.g., credit cards, loans), their need to hold a significant amount of cash for emergencies may decrease. Conversely, limited access to credit may increase the demand for holding money as a safety net.

(v) Uncertainty of Future Expenses: The potential for unexpected large expenditures, such as medical emergencies, home repairs, or sudden family needs, can increase the precautionary demand for money. People anticipate these costs and keep a reserve to ensure they are prepared.

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(7a)
Commercial policy refers to the set of rules, regulations, and measures adopted by a government to regulate and manage its international trade activities. It consist of strategies and instruments used to control imports and exports, promote domestic industries, and protect the country's economy from foreign competition.

(7b)
(PICK ANY THREE)
(i) Reduction in Government Spending
(ii) Increase in Taxes
(iii) Reduction in Import Subsidies
(iv) Increase in Export Incentives
(v) Import Duties
(vi) Export Taxes
(vii) Tariff Protection
(viii) Reduction in Transfer Payments
(ix) Increase in Interest Rates
(x) Reduction in Fiscal Deficit

(7c)
(PICK ANY THREE)
(i) Promotes Economic Growth: Free trade allows countries to specialize in producing goods and services in which they have a comparative advantage. This enhances efficiency, boosts productivity, and accelerates economic growth.

(ii) Increases Consumer Choices: With free trade, consumers gain access to a wider variety of goods and services, often at lower prices, due to increased competition and diverse global suppliers.

(iii) Enhances Innovation and Competition: Free trade fosters competition among businesses globally, encouraging innovation, improved technology, and higher-quality products.

(iv) Improves Resource Allocation: By removing trade barriers, free trade ensures resources (labor, capital, and raw materials) are allocated to sectors where they are most productive, optimizing global output.

(v) Encourages International Cooperation: Countries engaged in free trade develop strong economic ties, which can lead to better political and diplomatic relationships.

(vi) Boosts Employment Opportunities: Free trade creates new markets for goods and services, encouraging businesses to expand and hire more workers, particularly in export-oriented industries.

(vii) Reduces Costs for Businesses: Free trade eliminates tariffs and non-tariff barriers, lowering costs for businesses that rely on imported inputs, which can lead to lower prices for consumers.

(viii) Reduces Inefficiency and Monopolies: Domestic monopolies face international competition under free trade, leading to reduced inefficiency and more competitive markets.

(ix) Encourages Economic Development: Developing countries benefit from free trade by gaining access to larger markets, foreign investments, and advanced technology, which support their economic

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(8a)
(PICK ANY ONE)
Renewable natural resources are natural resources that can be replenished or regenerated over time through natural processes or sustainable management. These resources are not depleted when used responsibly, as they can naturally renew themselves within a human

OR

Renewable natural resources are resources that can be replenished or regenerated naturally over time and do not deplete when used sustainably. Examples include sunlight, wind, water, forests, and wildlife.

(8b)
(PICK ANY THREE)
(i) Energy Production (e.g., Solar and Wind Energy): Renewable resources like solar and wind energy provide sustainable and clean energy sources. This reduces dependence on non-renewable energy, decreases pollution, and promotes long-term energy security.

(ii) Economic Growth (e.g., Forests):
Renewable resources such as forests contribute to industries like timber, paper production, and ecotourism. These industries create jobs, support livelihoods, and generate revenue for the economy.

(iii) Agricultural Sustainability (e.g., Water Resources): Water resources support irrigation and livestock, which are critical for agriculture. Sustainable water management ensures food security and reduces the risk of drought-related economic losses.

(iv) Environmental Protection (e.g., Forests and Wildlife): Renewable resources like forests absorb carbon dioxide, help mitigate climate change, and support biodiversity. This reduces environmental degradation, ensuring long-term ecological balance essential for economic sustainability.

(v) Revenue Generation (e.g., Ecotourism): Renewable resources such as natural parks and wildlife attract tourists, generating income for the economy through ecotourism. This supports local businesses and government revenue through taxes.

(8c)
(PICK ANY THREE)
(i) Land is essential for growing crops and raising livestock, supporting the food supply chain and contributing to economic

(ii) Land provides access to minerals, forests, and water resources, which are vital for industrial activities and energy production.

(iii) Land serves as the foundation for building infrastructure like roads, factories, schools, and hospitals, which drive economic growth and development.

(iv) Land provides essential raw materials such as minerals, timber, and agricultural produce, which are critical inputs for industries and manufacturing.

(v) Land is necessary for building homes, cities, and communities, providing the physical space for residential and urban development.

(vi) Land serves as the base for roads, railways, and ports, enabling efficient transportation and trade within and between countries.

(vii)Land hosts historical sites, parks, and recreational areas, which contribute to the cultural heritage and tourism industry, boosting economic activity.