Monday 14 November 2016

Neco Gce 2016/17 Economics Obj/Theory

ECONS OBJ
1EDBBEBBEED 
11BBBCEDAECD 
21DBCCDCDDBA 
31DDCBACACAE 
41BDBBBBDCEB 
51CBBBCAEACB
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1ai)

Qd = 45 - 3p
Qs = 20 + 2p

Qd = Qs
45-3p = 20+2p
Collect like term
45-20 = 2p+3p
25=5p
Divide both side by 5
5p/5 = 25/5

P= #5

equilibrium price = #5

Iii)

Qd = 45 - 3(5)
Qd = 45 - 15
Qd = 30unit


Qs = 20+2p
Qs = 20+2(5)
Qs = 20+10
Qs = 30unit


(Iii) 
When price is #12
Qd=45-3p
45-3(12)
45-36
=9

As=20+2p
20+2(12)
20+24
=44

Excess supply is 35
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4a. Production is a process of workers combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). It is the act of creating output , a good or service which has value and contributes to the utility of individuals.

4ii). Tangible goods : Consider an example of a manufacturing
industry like a Sugar Industry. Here, sugarcane is first used as an input, then the juice of sugarcane is processed through a conversion process, finally to get an output known as a refined sugar (used for mass consumption).

ii). Intangible goods : Consider an example from a service industry that of a software-development firm or company. Here, initially, written program codes are used as an inputs. These codes are then integrated in some database and are provided with a user-friendly interface through a conversion process. Finally, an output is made available in form of an executable application program.

iii) Conclusion
Production system is a result of arranging inputs, their conversion process and output based on some logic and functions. Production system fails if any such arrangement made don't give a desired level of outcome.
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5i) A public corporation is a corporate body created by the special Act of the parliament. Such Act defines the power, duties, privileges and pattern of management of these organisations.

5ii )
i. It is a corporate body created by the special act in the state or central legislature. The power and duties of these corporations are
defined by this Act.

ii. It enjoys the status of a legal entity and as such it can enter into contract in its own name.

iii. It is completely owned by the government and as such no private individuals are entitled to purchase shares of these organisations.

iv. A public corporation is managed by a board of directors.
The members of the board are from all walks of industry and commerce. The chairmen of these corporations are appointed by the
government.

v. The entire capital is financed by the government. It was set up with a capital of its own and is entitled to borrow, use and re-use revenue
from the sale of goods.
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11) Unemployment in economis can simply define as a phenomenon that occurs when a person who is actively searching for employment is unable to find work

11b)
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11b)

11(ii )

1.Loss of income: Unemployment normally
results in a loss of income. The majority of the
unemployed experience a decline in their living
standards and are worse off out of work. This
leads to a decline in spending power and the
rise of falling into debt problems. The
unemployed for example may find it difficult to
keep up with their mortgage repayments.
2.Negative multiplier effects: The closure of a
local factory with the loss of hundreds of jobs
can have a large negative multiplier effect on
both the local and regional economy. One
person’s spending is another’s income so to
lose well-paid jobs can lead to a drop in
demand for local services, downward pressure
on house prices and ‘second-round employment
effects’ for businesses supplying the factor or
plant that closed down.
3.Loss of national output: Unemployment
involves a loss of potential national output (i.e.
GDP operating well below potential) and is a
waste of scarce resources. If some people
choose to leave the labour market permanently
because they have lost the motivation to search
for work, this can have a negative effect on long
run aggregate supply and thereby damage the
economy’s growth potential. Some economists
call this the “hysteresis effect”. When
unemployment is high there will be an increase
in spare capacity - in other words the output
gap will become negative and this can have
deflationary forces on prices, profits and output.
4.Fiscal costs: The government loses out
because of a fall in tax revenues and higher
spending on welfare payments for families with
people out of work. The result can be an
increase in the budget deficit which then
increases the risk that the government will have
to raise taxation or scale back plans for public
spending on public and merit goods. The
problems facing the UK government at the
moment are closely linked to the surge in
unemployment.
5.Social costs: Rising unemployment is linked to
social deprivation . For example, there is a
relationship with crime and social dislocation
including increased divorce rates, worsening
health and lower life expectancy. Regions that
suffer from persistently high long-term
unemployment see falling real incomes and a
widening of inequality of income and wealth.
The recent figures on poverty in the UK are
testimony to the social damage that high
unemployment can have.

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