2019 NECO ECONOMICS OBJECTIVE
1-10 CCDACADBBC
11-20 EEADABAAEB
21-30 ACBBDEBDCA
31-40 DADDECBCCC
41-50 BABBADDAEE
51-60 DEACDCABAA
*2019 NECO VERIFIED ECONOMICS ANSWERS*
#####################
*SECTION A*
*Answer one question only*
No1a)
Income elasticity of demand is the degree of responsiveness of demand to changes in the income of consumers.
No1b)
% changes in Qd = new Qd-old Qd/ old Qd × 100/1
=250 - 150/ 150 × 100/1
=100/150 × 100/1
= 66.67% (2 d.p)
.% changes in Income
= new income - old income/ old income × 100/1
= 600,000- 300,000/300,000 × 100/1
= 300,000/300,000× 100/1 = 100
If % changes in Qd = 66.67%
and % changes in income = 100%
Therefore: co-efficient of income elasticity of demand
= %changesQd/% changes *I* (income)
= 66.67%/100%
= 66.67/100
= 0.67
No1d)
Bournvita to Mr. Dantani is a normal goods. That is so because when Mr. Dantani's income rose from N300,000 to N600,000, his demand for bournvita also increased from 150 to 250, thus indicating positive elasticity. This is usually the case with normal goods
>>>>>>>>>>>>>>>>>>>>>>>>>
(No4)
<pick Any five>
(i)Open Market operation (OMO)
(ii)Liquidity ratio or cash ratio
(iii)Bank rate
(iv)Special directives
(v)special deposit
(vi)Moral suasion
<<EXPLANATIONS:>>
(i) Open Market operation (OMO): Open market operation is the purchase or sale of government securities in the open market to expand or restrict the volume f money in circulation. The central bank applied this policy with the aim of regulating the volume of money in circulation. When there is too much money in circulation, the central bank will sell securities.But in order to expand the volume,it buys securities.
(ii) Liquidity ratio or cash ratio: The commercial banks are mandated by the government to keep a special people, eg 25% of their total deposit with the central bank in order to control the volume of credit .The size can be expanded or contracted depending on the economic condition of the nation.
(iii) Bank rate: Bank rate is the minimum rate of interest charged by the central bank for discounting bill of exchange. By lowering or raising the rate,the central bank can control the activities of the commercial banks.When the rate increases,loan to the public (customers) reduces,while a fall in the rate will encourage more loan
(iv) Special directives: The central bank can issue directives or specific instructions to the commercial banks and other financial institutions to restrict their lending or credit policy or on the direction to which loaning should follow. They will be told to direct their funds to sectors which are in need of investment
(v) Special deposit: special deposit is also an instrument of monetary policy which is used to restrict lending.The central bank can order the commercial banks to have special deposits, usually a percentage of the bank's deposits, to be made with it.This is intended to control credit and is often used during the period of Inflation to reduce cash with bank. The central bank will mandate the commercial banks to keep special deposit over the statutory requirement
(vi) Moral suasion: The central bank can make an appeal to the commercial banks to restrict or expand the level of credit to the public . Moral suasion is not based on the use of force but an appeal to restrict or expand the lending policy
#####################
No5)
<<Pick any five>>
(i) _Inadequate Land Tenure System:- The land tenure system in many areas does not encourage agricultural productivity. In some places, land is communally owned and farmers have no claim to the land after they have finished using it. The communal system of land tenure has several adverse effects. People who wish to farm on a large scale and do not belong to the community may find it difficult to acquire enough land. In some places, non-members of the community who wish to farm on the community’s land may not be allowed to do so. The land cannot be sold to outsiders.
(ii)_Small Size of Farm:- In many areas, the farms are very small as a result of land fragmentation. A piece of land is divided into smaller pieces and allotted to the sons of the family. The small size of farms makes the use of mechanized farming wasteful, and large-scale farming becomes impossible. There are therefore no economies of scale in production.
(iii)_Persistent Pest Attacks:- The constant attacks on crops and animals by diseases and pests contribute to low productivity. Many crops are destroyed by diseases and pests before the harvesting period. Caterpillars, beetles, and army-worms destroy many crops. The mealybug has consistently been attacking cassava in many areas. The presence of tsetse fly causes cattle disease. The destruction of agricultural products by pests and diseases leads to a poor yield per hectare.
(iv)_Inadequate Farming Methods:- Shifting cultivation is still practiced in some areas where there is abundant land and a very low population density. This method of farming wastes time and energy in clearing forests for the purpose of planting. It also aids soil erosion.
(v)_Poor Marketing Facilities:- In many countries, organized marketing facilities are provided mainly for export crops. Facilities for the marketing and distribution of food crops are inadequate. Many farmers are not willing to increase output since they cannot easily market their products. Also, low fluctuating prices of agricultural products, brought about by some other constraints to agricultural development, discourage productivity.
(vi)_Poor Transportation Facilities:- Many farming areas are not served with good roads or other means of transportation. Farmers in such remote areas therefore finds it difficult to evacuate their agricultural produce for sale. Many of the farm products perish before they reach their destination due to the bad roads and inadequate feeder roads. Farmers in such areas are therefore forced to curtail their production since large-scale production does not yield them much dividend.
(vii)_Inadequate Storage Facilities:- At present, there are inadequate storage facilities for many crops such as silos for grain, cold rooms for perishable commodities, etc. These are either not available or insufficient. Agricultural products are spoiled while being stored under inadequate tropical conditions due to attack by pests or adverse weather conditions. This reduces the farmer’s incentive to produce on a large scale.
#######################
No. 6a)
Definition of 'Capital Market' Definition:
Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.
No.6b)
•Savings:
Investing in securities that are listed in the Capital or Stock market encourages inv fbestors to accumulate their savings in small amounts over time
•Income:
Investment in the stock market provides a source of income. Shares pay dividends when companies declared profits and decide to distribute part of the profits to shareholders. Bonds pay an interest income to the bondholders. Sometimes the income earned from listed securities is higher than interest earned from the money or banking sector.
•Wealth or Capital gain:
Whenever the prices of securities listed in the market go up, the value of the investment of the holders of those securities increases. This is called capital gain and is an important way of growing wealth through the stock market. It is important to note that a one –off investment in the Capital market does not make sense. It is therefore the accumulative investment over time that creates opportunities for growth in wealth through the Capital Market.
•Securities as Collateral:
Listed securities are easily acceptable as collateral against loans from financial institutions.
•Liquidity:
Liquidity is the ability to convert shares or bonds into cash by selling within the shortest time possible without losing much value. When one needs funds urgently, listed securities could be very useful because they are more liquid than most other forms of assets.
Bonds pay an interest income and shares pay dividends income
•Grow wealth:
Over time, the value of your investment increases, whenever the prices of your stock go up. This is called capital gains.
Listed securities are easily acceptable as collateral against loans.
No 7)
Pick any five
(i)Loan availability:
The primary function of AfDB is making loansand equity investments for the socio-economic advancement of the RMC(regional member countries).
(ii)project developement:
the bank provides technical assistance for development projects and programs.
(iii)investment promotion:
it promotes investment of public and private capital for development.
(iv)Development:
the bank assists in organizing the development policies of regional member countries.
(v)Regional integration promotion:
The AfDB is also required to give special attention to national and multinational projects which are needed to promote regional integration.
(vi)Financial mobilization:
Mobilizing financial resources from the Government or the foreign financial institutions witha view to lending the money for development of specific sectors of the economy
####################
No10a)
Industrialization is a phenomenon in the development of nations, characterized by the growth of machine and power tools production, the growth of mechanical and technical skills (technology) required for industrial production, with attendant large-scale production all of which leads to changes in the social and economic organization of society.
No10b).
(I) To tackle the problem of managerial and technical know-how, the Centre for Management Training was made an agent of the Nigerian Enterprises Promotion Board. It was to help in training indigenous personnel. The Manufacturers’ Association of Nigeria and the Nigeria Employers’ Consultative Association were to organize seminars for indigenous personnel.
(II) To combat the issue of possible collusion and sabotage of the decree, the decree provided for very stiff penalties for any Nigerian found sabotaging the efforts of the decree. Any Nigerian found guilty of such criminal lack of patriotism was to pay a fine of N150,000.00 or go to jail for five years, or both. It is not easy to deal with the problem of a few Nigerians being enriched at the expense of the masses.
(III) To combat the possible problem of capital outflow in the short run, a member of regulations were made. There regulations included:
-That there would be no repatriation of funds in cases where the masses were sold to non-Nigerians.
-Repatriation was not allowed for the sale of real estates which were developed from funds generated locally, except on the final emigration of the owner
(IV) To combat the problem of capital shortage:
-The federal government set up the Nigerian bank for commerce and industry. The primary objective was to provide the necessary funds for acquiring the businesses of foreigners affected by the decree.
-Commercial banks were encouraged to give loans to prospective indigenous businessmen for acquiring the business of aliens.
#####################
No11a)
Unemployment is a situation where some people who fall within the ages of the working population, capable and willing to work are unable to obtain befitting work to do.
No11b)
i ) Achieving industrialization: Establishing many industries will create more employment opportunities.
ii) Population Control: Optimum population will help to to solve our unemployment problem because it will bring our population to equilibrium point with out resources.
iii) Good development plans schools and colleges should be established based on the available places that will absorb the products of these institutions
*✅COMPLETED✅*
2019 NECO ECONOMICS OBJECTIVE
1-10 CCDACADBBC
11-20 EEADABAAEB
21-30 ACBBDEBDCA
31-40 DADDECBCCC
41-50 BABBADDAEE
51-60 DEACDCABAA
*2019 NECO VERIFIED ECONOMICS ANSWERS*
#####################
*SECTION A*
*Answer one question only*
No1a)
Income elasticity of demand is the degree of responsiveness of demand to changes in the income of consumers.
No1b)
% changes in Qd = new Qd-old Qd/ old Qd × 100/1
=250 - 150/ 150 × 100/1
=100/150 × 100/1
= 66.67% (2 d.p)
.% changes in Income
= new income - old income/ old income × 100/1
= 600,000- 300,000/300,000 × 100/1
= 300,000/300,000× 100/1 = 100
If % changes in Qd = 66.67%
and % changes in income = 100%
Therefore: co-efficient of income elasticity of demand
= %changesQd/% changes *I* (income)
= 66.67%/100%
= 66.67/100
= 0.67
No1d)
Bournvita to Mr. Dantani is a normal goods. That is so because when Mr. Dantani's income rose from N300,000 to N600,000, his demand for bournvita also increased from 150 to 250, thus indicating positive elasticity. This is usually the case with normal goods
>>>>>>>>>>>>>>>>>>>>>>>>>
(No4)
<pick Any five>
(i)Open Market operation (OMO)
(ii)Liquidity ratio or cash ratio
(iii)Bank rate
(iv)Special directives
(v)special deposit
(vi)Moral suasion
<<EXPLANATIONS:>>
(i) Open Market operation (OMO): Open market operation is the purchase or sale of government securities in the open market to expand or restrict the volume f money in circulation. The central bank applied this policy with the aim of regulating the volume of money in circulation. When there is too much money in circulation, the central bank will sell securities.But in order to expand the volume,it buys securities.
(ii) Liquidity ratio or cash ratio: The commercial banks are mandated by the government to keep a special people, eg 25% of their total deposit with the central bank in order to control the volume of credit .The size can be expanded or contracted depending on the economic condition of the nation.
(iii) Bank rate: Bank rate is the minimum rate of interest charged by the central bank for discounting bill of exchange. By lowering or raising the rate,the central bank can control the activities of the commercial banks.When the rate increases,loan to the public (customers) reduces,while a fall in the rate will encourage more loan
(iv) Special directives: The central bank can issue directives or specific instructions to the commercial banks and other financial institutions to restrict their lending or credit policy or on the direction to which loaning should follow. They will be told to direct their funds to sectors which are in need of investment
(v) Special deposit: special deposit is also an instrument of monetary policy which is used to restrict lending.The central bank can order the commercial banks to have special deposits, usually a percentage of the bank's deposits, to be made with it.This is intended to control credit and is often used during the period of Inflation to reduce cash with bank. The central bank will mandate the commercial banks to keep special deposit over the statutory requirement
(vi) Moral suasion: The central bank can make an appeal to the commercial banks to restrict or expand the level of credit to the public . Moral suasion is not based on the use of force but an appeal to restrict or expand the lending policy
#####################
No5)
<<Pick any five>>
(i) _Inadequate Land Tenure System:- The land tenure system in many areas does not encourage agricultural productivity. In some places, land is communally owned and farmers have no claim to the land after they have finished using it. The communal system of land tenure has several adverse effects. People who wish to farm on a large scale and do not belong to the community may find it difficult to acquire enough land. In some places, non-members of the community who wish to farm on the community’s land may not be allowed to do so. The land cannot be sold to outsiders.
(ii)_Small Size of Farm:- In many areas, the farms are very small as a result of land fragmentation. A piece of land is divided into smaller pieces and allotted to the sons of the family. The small size of farms makes the use of mechanized farming wasteful, and large-scale farming becomes impossible. There are therefore no economies of scale in production.
(iii)_Persistent Pest Attacks:- The constant attacks on crops and animals by diseases and pests contribute to low productivity. Many crops are destroyed by diseases and pests before the harvesting period. Caterpillars, beetles, and army-worms destroy many crops. The mealybug has consistently been attacking cassava in many areas. The presence of tsetse fly causes cattle disease. The destruction of agricultural products by pests and diseases leads to a poor yield per hectare.
(iv)_Inadequate Farming Methods:- Shifting cultivation is still practiced in some areas where there is abundant land and a very low population density. This method of farming wastes time and energy in clearing forests for the purpose of planting. It also aids soil erosion.
(v)_Poor Marketing Facilities:- In many countries, organized marketing facilities are provided mainly for export crops. Facilities for the marketing and distribution of food crops are inadequate. Many farmers are not willing to increase output since they cannot easily market their products. Also, low fluctuating prices of agricultural products, brought about by some other constraints to agricultural development, discourage productivity.
(vi)_Poor Transportation Facilities:- Many farming areas are not served with good roads or other means of transportation. Farmers in such remote areas therefore finds it difficult to evacuate their agricultural produce for sale. Many of the farm products perish before they reach their destination due to the bad roads and inadequate feeder roads. Farmers in such areas are therefore forced to curtail their production since large-scale production does not yield them much dividend.
(vii)_Inadequate Storage Facilities:- At present, there are inadequate storage facilities for many crops such as silos for grain, cold rooms for perishable commodities, etc. These are either not available or insufficient. Agricultural products are spoiled while being stored under inadequate tropical conditions due to attack by pests or adverse weather conditions. This reduces the farmer’s incentive to produce on a large scale.
#######################
No. 6a)
Definition of 'Capital Market' Definition:
Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.
No.6b)
•Savings:
Investing in securities that are listed in the Capital or Stock market encourages inv fbestors to accumulate their savings in small amounts over time
•Income:
Investment in the stock market provides a source of income. Shares pay dividends when companies declared profits and decide to distribute part of the profits to shareholders. Bonds pay an interest income to the bondholders. Sometimes the income earned from listed securities is higher than interest earned from the money or banking sector.
•Wealth or Capital gain:
Whenever the prices of securities listed in the market go up, the value of the investment of the holders of those securities increases. This is called capital gain and is an important way of growing wealth through the stock market. It is important to note that a one –off investment in the Capital market does not make sense. It is therefore the accumulative investment over time that creates opportunities for growth in wealth through the Capital Market.
•Securities as Collateral:
Listed securities are easily acceptable as collateral against loans from financial institutions.
•Liquidity:
Liquidity is the ability to convert shares or bonds into cash by selling within the shortest time possible without losing much value. When one needs funds urgently, listed securities could be very useful because they are more liquid than most other forms of assets.
Bonds pay an interest income and shares pay dividends income
•Grow wealth:
Over time, the value of your investment increases, whenever the prices of your stock go up. This is called capital gains.
Listed securities are easily acceptable as collateral against loans.
No 7)
Pick any five
(i)Loan availability:
The primary function of AfDB is making loansand equity investments for the socio-economic advancement of the RMC(regional member countries).
(ii)project developement:
the bank provides technical assistance for development projects and programs.
(iii)investment promotion:
it promotes investment of public and private capital for development.
(iv)Development:
the bank assists in organizing the development policies of regional member countries.
(v)Regional integration promotion:
The AfDB is also required to give special attention to national and multinational projects which are needed to promote regional integration.
(vi)Financial mobilization:
Mobilizing financial resources from the Government or the foreign financial institutions witha view to lending the money for development of specific sectors of the economy
####################
No10a)
Industrialization is a phenomenon in the development of nations, characterized by the growth of machine and power tools production, the growth of mechanical and technical skills (technology) required for industrial production, with attendant large-scale production all of which leads to changes in the social and economic organization of society.
No10b).
(I) To tackle the problem of managerial and technical know-how, the Centre for Management Training was made an agent of the Nigerian Enterprises Promotion Board. It was to help in training indigenous personnel. The Manufacturers’ Association of Nigeria and the Nigeria Employers’ Consultative Association were to organize seminars for indigenous personnel.
(II) To combat the issue of possible collusion and sabotage of the decree, the decree provided for very stiff penalties for any Nigerian found sabotaging the efforts of the decree. Any Nigerian found guilty of such criminal lack of patriotism was to pay a fine of N150,000.00 or go to jail for five years, or both. It is not easy to deal with the problem of a few Nigerians being enriched at the expense of the masses.
(III) To combat the possible problem of capital outflow in the short run, a member of regulations were made. There regulations included:
-That there would be no repatriation of funds in cases where the masses were sold to non-Nigerians.
-Repatriation was not allowed for the sale of real estates which were developed from funds generated locally, except on the final emigration of the owner
(IV) To combat the problem of capital shortage:
-The federal government set up the Nigerian bank for commerce and industry. The primary objective was to provide the necessary funds for acquiring the businesses of foreigners affected by the decree.
-Commercial banks were encouraged to give loans to prospective indigenous businessmen for acquiring the business of aliens.
#####################
No11a)
Unemployment is a situation where some people who fall within the ages of the working population, capable and willing to work are unable to obtain befitting work to do.
No11b)
i ) Achieving industrialization: Establishing many industries will create more employment opportunities.
ii) Population Control: Optimum population will help to to solve our unemployment problem because it will bring our population to equilibrium point with out resources.
iii) Good development plans schools and colleges should be established based on the available places that will absorb the products of these institutions
*✅COMPLETED✅*
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