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SECTION A
INSTRUCTION; ANSWER ALL QUESTIONS IN THIS SECTION
(1a)
(PICK TWO ONLY)
(i) A change in demand is usually caused by factors like changes in consumer preferences, income, prices of related goods, and future expectations, while a change in quantity demanded is caused solely by a change in the price of the good or service.
(ii) Change in demand is a shift in the entire demand curve, representing a change in the quantity demanded at every price level, while a change in quantity demanded is a movement along the demand curve following a price change, while other factors remain constant.
(iii) A change in demand is illustrated by a shift of the entire demand curve either to the right (increase in demand) or to the left (decrease in demand), while a change in quantity demanded is illustrated by movement along the demand curve.
(iv) A change in demand implies a long-term shift in the demand curve, reflecting a change in consumers’ overall willingness and ability to purchase a good or service. In contrast, a change in quantity demanded occurs within a short time frame due to a price change.
(v) A change in demand affects the equilibrium quantity and price in the market, leading to a new equilibrium point. In contrast, a change in quantity demanded only results in a movement along the demand curve without affecting the equilibrium.
(vi) Changes in demand can be elastic or inelastic, indicating the degree of responsiveness of quantity demanded to price changes. A change in quantity demanded, being a movement along the demand curve, does not involve elasticity considerations.
(1b)
(PICK TWO ONLY)
(i) Cost of production: The cost of producing the commodity, including factors such as raw material costs, labor costs, and technology, can influence the supply. If production costs increase, it may result in a decrease in supply.
(ii) Technology and productivity: Advances in technology and productivity improvements can lead to increased output, thus affecting the supply. More efficient production processes can result in higher supply levels.
(iii) Price of inputs: The price of inputs, such as raw materials, energy, and labor, can impact the supply. If the prices of these inputs increase, it can lead to higher production costs and potentially lower supply.
(iv) Government regulations: Government policies and regulations can have a significant impact on supply. Changes in taxes, subsidies, trade restrictions, and production regulations can affect the profitability and feasibility of producing and supplying the commodity.
(v) Weather and natural disasters: Weather conditions, natural disasters, and climate patterns can impact the supply of certain commodities, particularly in agriculture and natural resource industries. Droughts, floods, hurricanes, and other events can disrupt production and reduce supply.
(vi) Expectations of future prices: Expectations of future prices can influence supply. If producers anticipate higher prices in the future, they may reduce supply now to take advantage of potential profits later. Conversely, if they expect lower prices, they may increase supply in the present to avoid potential losses in the future.
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(2a)
A market is a place or a system where buyers and sellers engage in the exchange of goods, services, or assets.
(2b)
(PICK TWO ONLY)
(i) Market Structure: In a perfect market, there are numerous buyers and sellers, making the market highly competitive, while an imperfect market has limited buyers and sellers, resulting in less competition.
(ii) Information: In a perfect market, all participants have perfect information about prices, quality, and availability of goods and services. In an imperfect market, there is asymmetric information, meaning that some participants may have more knowledge or access to information than others.
(iii) Product Differentiation: Products in a perfect market are homogenous, meaning they are identical in terms of quality and features, while an imperfect market often has differentiated products, where firms can create a unique selling proposition through branding, design, or product features.
(iv) Entry and Exit Barriers: Perfect markets have no entry or exit barriers, allowing firms to enter or exit the market freely. In contrast, imperfect markets often have significant barriers to entry, such as high initial investments, legal requirements, or exclusive contracts, restricting the entry or exit of firms.
(v) Pricing Power: In a perfect market, no individual buyer or seller has the power to influence the market price. In an imperfect market, some players may have pricing power, enabling them to influence the market price through their dominant market position.
(vi) Government Regulation: Perfect markets generally require minimal government intervention, as they efficiently allocate resources. Imperfect markets, however, may have more government regulations to ensure fair competition, protect consumers, or prevent monopolistic practices.
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(3a)
Production is the process by which resources, such as labor, land, capital, and entrepreneurship, are transformed into finished goods or services.
(3b)
(PICK TWO ONLY)
(i) Opportunity identification and creation: Entrepreneurs are skilled at identifying and creating opportunities in the market. They can recognize gaps, needs, and untapped potential, and find innovative ways to capitalize on them.
(ii) Risk assessment and management: Entrepreneurs understand the risks involved in their ventures and can assess and manage them effectively. They weigh the potential rewards against the risks and make informed decisions.
(iii) Innovation and creativity: Entrepreneurs are known for their innovative and creative thinking. They constantly seek new and improved ways of doing things, developing groundbreaking products or services, and introducing novel business models.
(iv) Resource mobilization: Entrepreneurs are adept at mobilizing resources such as capital, human resources, technology, and partnerships. They can attract investors, secure funding, build teams, and leverage relationships to support their ventures.
(v) Strategic planning: Entrepreneurs develop strategic plans to guide their businesses towards success. They set goals, define objectives, and create roadmaps to achieve them. They also adapt and adjust their plans as needed in response to changing market conditions.
(vi) Leadership and management: Entrepreneurs provide leadership and drive their ventures forward. They inspire and motivate their teams, make crucial decisions, manage resources efficiently, and ensure that the business operates effectively and achieves its objectives.
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(4)
(PICK FOUR ONLY)
(i) Enhancing transportation infrastructure
(ii) Streamlining customs and import processes
(iii) Implementing efficient inventory management systems
(iv) Encouraging local production and manufacturing
(v) Promoting competition and fair market practices
(vi) Investing in technology for logistics and supply chain management
(vii) Supporting small-scale retailers through training and financial assistance
(viii) Improving communication and collaboration among stakeholders in the distribution network
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(5)
(PICK FOUR ONLY)
(i) Lack of double coincidence of wants: In barter systems, both parties must have a mutual desire for each other’s goods or services, which can be difficult to achieve. It requires a perfect match between the goods or services being exchanged.
(ii) Difficulty in determining value: In a barter system, it becomes challenging to determine the fair exchange value of goods or services. Without a common medium of exchange, there is no standardized way to measure value accurately.
(iii) Lack of division of labor: Barter systems often discourage specialization and division of labor. Individuals are usually involved in the direct exchange of goods or services, which limits their ability to focus on their expertise and leads to inefficiencies.
(iv) Absence of a standard unit of account: Barter systems lack a universal unit of account, making it challenging to compare the value of various goods or services. This absence hinders the ability to measure and track economic activity accurately.
(v) Difficulty in accumulating wealth: Barter systems make it difficult to store or accumulate wealth. As wealth predominantly consists of goods and services, it becomes inconvenient to store large quantities as they are perishable, bulky, or impractical.
(vi) Limited geographical reach: Barter systems are typically confined to local or regional settings due to the challenges of transportation and communication. This limitation restricts trading opportunities and impedes economic growth.
(vii) Lack of economic efficiency: Compared to more advanced exchange mechanisms, barter systems tend to be less efficient. The search costs, negotiation time, and efforts required for each transaction can be significant, leading to a waste of valuable resources.
(viii) Inability to facilitate complex transactions: Barter systems are often inadequate in facilitating complex transactions that involve multiple parties, intricate contracts, or deferred payments. These limitations restrict economic development and hinder the growth of business enterprises.
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(6a)
A central bank is a financial institution that is responsible for managing a country’s money supply, interest rates, and currency stability.
(6b)
(PICK TWO ONLY)
(i) Loan defaults: When borrowers are unable to repay their loans, it becomes a liability for the commercial bank as they have to bear the loss.
(ii) Credit risk: Commercial banks are exposed to credit risks when they extend loans to individuals or businesses with a high likelihood of default. This risk affects the bank’s profitability and liquidity.
(iii) Interest rate risk: Commercial banks face interest rate risk when there is a difference between the interest rates they earn on loans and the interest rates they pay on deposits. A sudden change in interest rates can lead to fluctuations in the bank’s profitability.
(iv) Liquidity risk: This risk arises when a commercial bank is unable to meet its short-term obligations, such as deposit withdrawals, due to a shortage of liquid assets. In such cases, the bank may have to borrow funds at higher rates to fulfill its obligations.
(v) Operational risk: Commercial banks face operational risks related to internal processes, systems, and human error. These risks include fraud, technology failures, and disruptions in the bank’s operations, which can lead to financial losses and reputational damage.
(vi) Regulatory risk: Commercial banks are subject to various regulatory requirements imposed by central banks, financial authorities, and government agencies. Failure to comply with these regulations can lead to penalties, legal action, and damage to the bank’s reputation.
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(7)
Total cost refers to the overall cost incurred to produce a specific quantity of goods or services. It includes all the expenses involved in the production process, such as raw materials, labor, utilities, rent, equipment, and other overhead costs.
Average cost, also known as unit cost, is the cost per unit of output. It is calculated by dividing the total cost by the quantity of goods or services produced. Average cost provides insights into how efficiently resources are being utilized to produce each unit.
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(8)
(PICK FOUR ONLY)
(i) Economic Reforms: Implementing comprehensive economic reforms that include measures to ease business regulations, simplify bureaucracy, and improve the ease of doing business will attract foreign investors.
(ii) Infrastructure Development: Investing in infrastructure development such as transportation systems, power generation, telecommunications, and other critical sectors will enhance the attractiveness of Nigeria as an investment destination.
(iii) Investment Incentives: Offering attractive investment incentives such as tax breaks, exemptions, and providing special economic zones can incentivize foreign companies to invest in Nigeria.
(iv) Political Stability: Ensuring a stable political environment, protecting property rights, and maintaining the rule of law are crucial factors that contribute to attracting foreign investment.
(v) Investment Promotion: Developing targeted strategies and engaging in proactive investment promotion activities to showcase Nigeria’s potential investment opportunities will attract foreign investors.
(vi) Skilled Workforce Development: Investing in education and vocational training programs to develop a skilled and adaptable workforce will make Nigeria an attractive destination for foreign investors looking for a capable workforce.
(vii) Sector-specific Policies: Implementing specific policies and incentives that are tailored to attract investment in sectors with growth potential, such as agriculture, manufacturing, technology, and renewable energy.
(viii) Public-Private Partnerships (PPPs): Encouraging public-private partnerships by creating an enabling environment and offering incentives for collaboration between the government and private investors can facilitate foreign investment inflows.
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(9)
(i) Personal income includes all sources of income, while disposable income only considers the income available for spending or saving after deductions.
(ii) Personal income is the total amount earned before taxes, while disposable income is the amount available for consumption or saving after taxes have been deducted.
(iii) Personal income includes non-discretionary items such as taxes, while disposable income does not consider these mandatory deductions.
(iv) Personal income represents the gross income earned, while disposable income represents the net income available for discretionary spending.
(v) Changes in personal income are influenced by both income received and tax changes, while changes in disposable income are primarily affected by tax changes and deductions.
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(10a)
(PICK TWO ONLY)
(i) Price Stability: OPEC aims to stabilize oil prices and prevent extreme fluctuations in the global oil market. It seeks to establish a balance between supply and demand to ensure stable and reasonable oil prices.
(ii) Market Share: OPEC aims to maintain a reasonable share of the global oil market. This involves ensuring a fair distribution of market share among its member countries, as well as protecting their interests in the face of competition from non-OPEC oil producers.
(iii) Energy Security: OPEC strives to promote the long-term security of energy supplies to both producer and consumer nations. It aims to ensure a consistent and reliable supply of oil to meet global demand, thereby contributing to global energy security.
(iv) Economic Development: OPEC seeks to support the economic development of its member countries through the efficient and sustainable exploitation of their oil resources. It aims to maximize the economic benefits derived from oil production and promote the diversification of their economies.
(v) Fair Return: OPEC aims to obtain a fair return on its member states’ oil reserves by ensuring that oil prices reflect their true value. It seeks to ensure that member countries receive reasonable compensation for their exhaustible natural resources.
(vi) Environmental Sustainability: OPEC acknowledges the importance of environmental sustainability and aims to promote responsible and sustainable practices within the oil industry. It seeks to balance economic growth with environmental protection by encouraging the adoption of cleaner technologies and mitigating the environmental impact of oil production and consumption.
(10b)
(PICK TWO ONLY)
(i) Instability of oil prices: OPEC’s actions or decisions can lead to fluctuations in oil prices, causing instability in global markets and economies.
(ii) Over-dependence on oil: Many member countries of OPEC heavily rely on oil exports for revenue generation. This over-dependence can make these economies vulnerable to oil price fluctuations and hinder their diversification efforts.
(iii) Disparity among member countries: OPEC consists of both developed and developing nations, leading to differing interests and priorities. This can create challenges in reaching consensus on production levels and policies.
(iv) Non-OPEC competition: OPEC’s ability to influence oil prices is limited by the presence of non-OPEC countries, which are major oil producers. Their production decisions can offset OPEC’s efforts to stabilize prices.
(v) Geopolitical tensions: OPEC members often face political and geopolitical challenges that can impact their oil production and exports. Conflicts, sanctions, or regime changes in member countries can disrupt the stability of OPEC’s activities.
(vi) Economic impact on non-OPEC countries: High oil prices resulting from OPEC’s decisions can negatively affect non-OPEC countries, particularly those heavily reliant on oil imports. This can lead to economic challenges, inflation, and increased costs for industries dependent on oil.
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SECTION B
PART I
ANSWER ONE QUESTION ONLY FROM THIS PART`
(11a)
Equilibrium price is the price at which the quantity of a good or service demanded by buyers is equal to the quantity supplied by producers.
(11bi)
To find the equilibrium price:
10 – 2P = 4P – 8
4P + 2P = 10 + 8
6P = 18
P = 18/6
P = 3
The equilibrium price (P) = ₦3.00
(11bii)
To find the equilibrium quantity:
D = 10 – 2P
Where: P = 3
D = 10 – 2(3)
D = 10 – 6
D = 4
The equilibrium quantity (D) = 4kg
(11biii)
To find the excess supply:
Given:
Price (P) = ₦4.00
Excess supply = S – D
= (4P – 8) – (10 – 2P)
= (4(4) – 8) – (10 – 2(4))
= (16 – 8) – (10 – 8)
= 8 – 2
= 6
The excess supply = 6kg
(11biv)
To find the excess demand:
Excess demand = D – S
Given:
Price (P) = ₦1.00
= (10 – 2P) – (4P – 8)
= (10 – 2(1)) – (4(1) – 8)
= (10 – 2) – (4 – 8)
= (8) – (-4)
= 8 + 4
= 12
The excess demand = 12kg
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(13a)
To calculate the per capita income:
Per capita income = GNP/Population
Country V:
V = 3500/140
V = 25
Country W:
W = 12000/180
W = 66.67
Country X:
X = 4000/80
X = 50
Country Y:
Y = 6500/100
Y = 65
Country Z:
Z = 3500/30
Z = 116.67
(13b)
To express the population of each country as a percentage of the total population:
Total population = 140+180+80+100+30
= 530
Total population of country V:
V = (140/530) x100
V = 26.42%
Total population of country W:
W = (180/530) x100
W = 33.96%
Total population of country X:
X = (80/530) x100
X = 15.09%
Total population of country Y:
Y = (100/530) x100
Y = 18.87%
Total population of country Z:
Z = (30/530) x100
Z = 5.66%
(13c)
The country with the highest per capita income generally enjoys the highest standard of living. Country Z has the highest per capita income of approximately 116.67.
(13d)
The range of per capita incomes is the difference between the highest and lowest per capita incomes:
= 116.67 – 25
= 91.67
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SECTION B
PART II
ANSWER THREE QUESTIONS ONLY FROM THIS PART
(14a)
Population census is a process of collecting, compiling, and analyzing demographic, social, economic, and other relevant information of all individuals living in a specific geographical area at a particular point in time.
(14bi)
Optimum population: Optimum population refers to the population size that is ideal for a particular region or country, considering factors such as available resources, infrastructure, and environmental sustainability. It represents a balance between the population and the resources required to support it. An optimum population is often characterized by a harmonious relationship between the population size and the capacity of the region to provide for the needs and well-being of its inhabitants.
(14bii)
Overpopulation: Overpopulation occurs when the number of individuals in a given area exceeds the carrying capacity of the environment to support them sustainably. It refers to a situation where the population surpasses the available resources and infrastructure, leading to various social, economic, and environmental challenges. Overpopulation can strain the availability of food, water, housing, healthcare, and other essential services, leading to poverty, unemployment, environmental degradation, and social unrest.
(14biii)
Underpopulation: Underpopulation refers to a situation where the number of individuals in a particular area is significantly lower than what is considered to be ideal or sustainable for that region. It may occur due to various factors, such as low birth rates, high migration rates, or significant population decline. Underpopulation can result in economic and social consequences, including labor shortages, reduced productivity, declining economic growth, and strains on public services and infrastructure.
(14ci)
Optimum population:
(i) Economic prosperity: An optimum population can lead to increased productivity, as there is a balance between available resources and the number of people utilizing them. This can contribute to higher standards of living through increased employment opportunities and overall economic growth.
(ii) Resource availability: With an optimum population, resources such as food, water, and energy can be adequately distributed among the population. This can ensure that everyone has access to basic needs, improving the standard of living.
(iii) Environmental sustainability: Optimum population levels allow for better management of natural resources and reduced strain on the environment. This can lead to cleaner air, water, and land, promoting a healthier living environment and an enhanced quality of life.
(iv) Social cohesion: A balanced population size can enhance social cohesion by promoting a sense of community and shared resources. This can lead to stronger social networks, improved social services, and a higher overall standard of living.
(v) Infrastructure development: Optimum population levels can stimulate investments in infrastructure development, such as transportation, healthcare, and education. This can improve access to essential services, enhancing the overall quality of life.
(14cii)
Overpopulation:
(i) Strain on resources: Overpopulation can lead to increased competition and strain on resources like housing, food, healthcare, and education. Limited availability of these resources can lower the standard of living, particularly for those who are marginalized or economically disadvantaged.
(ii) Environmental degradation: Overpopulation can accelerate the depletion of natural resources and cause environmental degradation, leading to pollution, deforestation, and loss of biodiversity. This can negatively impact the standard of living through reduced access to clean air, water, and natural spaces.
(iii) Increased poverty: Overpopulation can exacerbate poverty, as more people compete for limited resources and job opportunities. This can result in a higher prevalence of poverty-related issues, such as inadequate healthcare, malnutrition, and limited access to education.
(iv) Overburdened infrastructure: Overpopulation can strain existing infrastructure, leading to overcrowded cities, inadequate transportation systems, and overwhelmed social services. This can lower the standard of living by creating congestion and reducing the availability and quality of essential services.
(v) Social unrest: Overpopulation, combined with limited resources and growing inequalities, can lead to social tensions, conflicts, and unrest. This can negatively impact the standard of living by compromising social stability and safety.
(14ciii)
Underpopulation:
(i) Labor shortages: Underpopulation can lead to labor shortages, which can result in decreased economic productivity and hinder development. This can reduce employment opportunities and limit overall economic growth, impacting the standard of living.
(ii) Aging population: Underpopulation often coincides with an aging population, which can strain social security systems and healthcare services. This can affect the standard of living by limiting access to adequate healthcare and support for the elderly.
(iii) Reduced innovation: With a smaller population, there may be a lack of diverse ideas and perspectives, leading to reduced innovation and technological advancements. This can limit opportunities for economic growth and improvement in the standard of living.
(iv) Declining communities: Underpopulation can lead to the decline of communities, as local businesses and services struggle to survive with a shrinking customer base. This can result in limited access to essential goods and services, negatively affecting the standard of living.
(v) Higher per capita costs: Underpopulation can lead to higher per capita costs for public services, such as healthcare, education, and infrastructure. With a smaller population to share the expenses, individuals may face higher taxes or reduced access to services, lowering the overall standard of living.
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(15a)
(PICK FIVE ONLY)
(i) Population Growth: Nigeria has a rapidly growing population, which puts immense pressure on the labor market. The number of job seekers far outweighs the available job opportunities.
(ii) Inadequate Educational System: The Nigerian educational system often fails to equip graduates with the necessary skills and knowledge required by employers. This results in a significant mismatch between the job market demands and the skills possessed by potential employees.
(iii) Weak Industrial and Economic Growth: Nigeria’s industrial and economic sectors often experience slow growth, leading to a limited number of job opportunities. This is particularly true for industries that require high levels of skilled labor.
(iv) Low Foreign Direct Investment: Insufficient foreign direct investment in key sectors of the economy limits the establishment of new businesses and the expansion of existing ones. This restricts job creation and exacerbates unemployment rates.
(v) Poor Infrastructure: Inadequate infrastructure, such as unreliable power supply, inadequate transportation networks, and limited access to water and sanitation, hinders economic growth and discourages investment, resulting in fewer job opportunities.
(vi) Corruption: Rampant corruption in Nigeria deters foreign investors and undermines economic development. Corruption creates an unfavorable business environment, discouraging investment and limiting job creation.
(vii) Insecurity and Conflict: Persistent security challenges, such as insurgency, communal clashes, and other forms of violence, disrupt economic activities and deter investment. This leads to job losses and limited employment opportunities.
(viii) Lack of Support for Small and Medium Enterprises (SMEs): SMEs are considered a vital source of employment in many economies. However, inadequate access to credit, limited government support, and insufficient infrastructure make it challenging for SMEs to thrive, resulting in limited job creation.
(ix) High Cost of Doing Business: Nigeria has a high cost of doing business, including excessive taxation, bureaucratic bottlenecks, and regulatory challenges. These factors discourage entrepreneurship and limit job creation.
(x) Technology and Automation: Increasing automation and technological advancements in various industries lead to a reduced demand for human labor. This can result in job losses and unemployment, particularly for low-skilled workers.
(15b)
(PICK FIVE ONLY)
(i) Promoting entrepreneurship: Encourage the establishment of small and medium enterprises by providing funding, mentorship programs, and simplified registration processes. This will create more job opportunities.
(ii) Enhancing vocational and technical education: Strengthen vocational training and technical education programs to equip individuals with relevant skills for employment in various industries.
(iii) Encouraging foreign investment: Attract foreign investment by creating investor-friendly policies, improving infrastructure, and providing incentives. This can lead to the establishment of new businesses and job opportunities.
(iv) Investing in infrastructure development: Allocate resources to infrastructure projects such as transportation, energy, and communication systems. Improved infrastructure can attract investment, create jobs, and stimulate economic growth.
(v) Diversifying the economy: Encourage the development of sectors beyond oil and gas, such as agriculture, manufacturing, information technology, and tourism. This can create a more diverse job market and reduce dependency on a single industry.
(vi) Strengthening public-private partnerships: Foster collaboration between the government and private sector in implementing job creation initiatives, including shared investment in infrastructure and development projects.
(vii) Improving access to finance: Facilitate easier access to finance for entrepreneurs and small businesses through initiatives such as microfinance programs, grants, and low-interest loans.
(viii) Enhancing agricultural productivity: Invest in modern agricultural practices, provide farmers with training, and support the value chain in the agricultural sector. This can generate employment opportunities in farming, processing, and distribution.
(ix) Promoting digital skills: Invest in training programs to enhance digital literacy and skills among the youth, as the digital economy offers numerous employment opportunities.
(x) Supporting government initiatives: Support government-led initiatives such as job creation programs, youth empowerment schemes, and initiatives aimed at reducing unemployment rates.
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(16)
(PICK FIVE ONLY)
(i) Proximity to raw materials: Industries tend to locate near areas with abundant availability of raw materials. For example, in agricultural-based countries, industries such as food processing and textile manufacturing often cluster around regions that produce crops or livestock.
(ii) Access to transportation: The availability of efficient transportation infrastructure, including roads, railways, ports, and airports, is a significant factor in determining industry location. Easy access to transport networks can reduce transportation costs for both inputs and outputs.
(iii) Labor supply: The availability of skilled and affordable labor is often a critical factor for industries. High-population areas or regions with specific skill sets may attract labor-intensive industries, while high-tech industries may seek areas with a skilled workforce.
(iv) Energy availability: Industries typically require a stable and affordable energy supply. Thus, access to energy sources like coal, oil, natural gas, or renewable energy plays a vital role in industry location decisions.
(v) Market proximity: Industries often prefer to be close to their target markets to reduce transportation costs and meet customer demands quickly. This consideration is especially crucial for industries producing perishable goods or those relying on just-in-time manufacturing.
(vi) Government policies and incentives: Favorable government policies and incentives, such as tax breaks, subsidies, or infrastructure development support, can attract industries to specific locations. Governments may aim to promote economic growth, regional development, or specific sectors through such measures.
(vii) Infrastructure availability: Besides transportation infrastructure, the presence of other supporting facilities like industrial parks, utilities (water and electricity supply), telecommunications networks, and waste management services can influence industry location decisions.
(viii) Climate and natural resources: Some industries are influenced by specific climate conditions or the availability of natural resources. For instance, industries related to tourism are often located in areas with pleasant weather or scenic environments, while mining or forestry industries require access to specific natural resources.
(ix) Market demand and competition: The demand for specific products, as well as the level of competition in the market, can affect industry location decisions. Being closer to customers or near competitors can provide advantages in terms of responsiveness or cost efficiency.
(x) Environmental regulations: Industries are often subject to various environmental regulations, such as emission norms or waste disposal regulations. Industries may choose to locate in areas with less stringent regulations or where compliance is easier, to minimize costs or avoid potential penalties.
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(17a)
Public debt refers to the accumulated amount of money that a government owes to various creditors, both domestic and foreign.
(17b)
(i) Crowding out private investment: When the government increases its borrowing, it absorbs a significant amount of available funds in the economy. This can crowd out private investment as interest rates rise, making it more expensive for businesses to borrow money for investment or expansion. This can hinder economic growth and productivity.
(ii) Increased debt servicing costs: As public debt increases, so does the burden of debt servicing. The government needs to allocate a larger portion of its budget to pay interest and principal on the debt. This reduces the amount of available funds for other critical sectors such as education, healthcare, infrastructure development, and social welfare.
(iii) Pressure on fiscal discipline: High levels of public debt may create pressure on the government to meet interest and principal payments, which might lead to a higher budget deficit. This could result in an increased need to borrow, further exacerbating the debt burden and hampering fiscal discipline.
(iv) Weakening of the currency: An increase in public debt can put downward pressure on the value of the domestic currency. With higher debt levels, the risk perception of international investors may increase, leading to capital outflows and a depreciation in the exchange rate. This can result in higher import costs, inflationary pressures, and reduced purchasing power for citizens.
(v) Reduced economic stability: High levels of public debt can contribute to macroeconomic instability. Excessive borrowing can lead to budget deficits, inflationary pressures, and currency depreciation, which in turn may hinder long-term economic growth and stability.
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(18a)
A tariff refers to a tax or duty imposed on goods or services that are being imported or exported between countries.
(18b)
(PICK THREE ONLY)
(i) Protecting domestic industries: Tariffs can be used to shield domestic industries from international competition. By imposing tariffs on imported goods, domestic producers can enjoy a competitive advantage and have an opportunity to grow.
(ii) Promoting infant industries: Developing countries may impose tariffs to support the growth and development of their infant industries. Tariffs can provide a protective barrier for new industries to establish themselves and compete with more established international firms.
(iii) Generating government revenue: Tariffs can serve as a significant revenue source for developing countries. By imposing tariffs on imported goods, governments can generate revenue that can be invested in public services, infrastructure, and other development priorities.
(iv) Correcting trade imbalances: Developing countries often face trade imbalances, where they import more than they export. Tariffs can be used as a tool to reduce imports and correct these imbalances by making imported goods more expensive compared to locally produced goods.
(v) Encouraging import substitution: Tariffs can incentivize domestic production and encourage import substitution. By making imported goods more expensive, tariffs make domestically produced goods relatively more attractive and thus promote self-sufficiency and reduce dependence on imports.
(vi) Protecting national security and strategic interests: Tariffs can be imposed on certain goods to protect national security and strategic interests. For example, developing countries may impose tariffs on sensitive industries like defense and agriculture to ensure self-reliance and food security.
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(19a)
Economic planning refers to the process of formulating and implementing strategies, policies, and measures by the government or other central authorities to guide and control the economy.
(19b)
(PICK THREE ONLY)
(i) Lack of integrated and coordinated planning: Economic planning in West Africa often lacks integration and coordination among various sectors and levels of government. This leads to fragmented and inefficient policies and strategies.
(ii) Political instability and governance challenges: Many countries in West Africa have experienced political instability, corruption, and weak governance structures. This hampers effective economic planning and implementation of policies, as decision-making processes are often influenced by political interests rather than socioeconomic considerations.
(iii) Limited availability and reliability of data: Accurate and up-to-date data is crucial for effective economic planning. However, West Africa faces challenges in data collection, storage, and analysis. This hinders the ability to make informed decisions and develop evidence-based policies.
(iv) Inadequate human and institutional capacity: Economic planning requires skilled professionals and strong institutions to carry out research, analysis, and implementation. However, West Africa often faces a lack of trained personnel and weak institutions, affecting the quality and effectiveness of planning processes.
(v) Dependency on external factors: Many countries in West Africa heavily rely on external factors such as global commodity prices, foreign aid, and foreign direct investment. This dependence can undermine economic planning efforts, as countries may have little control over these external factors and limited ability to diversify their economies.
(vi) Insufficient infrastructure and logistical challenges: Inadequate infrastructure, such as transportation, energy, and communication systems, poses significant challenges for economic planning in West Africa. The lack of sufficient infrastructure hampers trade, investment, and economic development, limiting the effectiveness of planning initiatives.
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(20a)
(PICK FOUR ONLY)
(i) Alleviate poverty and improve living conditions: The African Development Bank (ADB) works towards reducing poverty and improving the quality of life for people in Africa by promoting inclusive and sustainable economic growth.
(ii) Promote sustainable economic development: The bank aims to support African countries in achieving sustainable economic development by investing in key sectors such as agriculture, infrastructure, energy, and industry.
(iii) Enhance regional integration: The ADB seeks to facilitate regional integration by supporting initiatives that enhance trade, infrastructure development, and collaboration among African countries.
(iv) Support private sector development: The bank promotes private sector investment and entrepreneurship in Africa by providing financing, technical assistance, and policy advice to stimulate economic growth.
(v) Improve governance and institutional capacity: The ADB works on strengthening governance and institutional capacity in African countries to enhance transparency, accountability, and effectiveness in public administration.
(vi) Foster social development and job creation: The bank aims to support social development initiatives, including education, healthcare, and social protection programs, while promoting job creation and youth empowerment.
(vii) Address climate change and environmental sustainability: The ADB endeavors to promote climate change mitigation and adaptation measures, as well as environmental sustainability, to ensure a greener and more resilient future for Africa.
(viii) Mobilize resources for development: The bank mobilizes financial resources from various sources, including member countries, international financial institutions, and capital markets, to finance development projects across Africa.
(20b)
(PICK THREE ONLY)
(i) Promotion of Economic Growth: The ADB has played a vital role in promoting economic growth across Africa. It provides financial support for infrastructure development, private sector development, and regional integration projects, all of which contribute to economic growth and job creation.
(ii) Poverty Reduction: The ADB has been actively involved in poverty reduction efforts in Africa. It provides financial assistance and technical expertise to support social programs, such as education, healthcare, and access to clean water. By addressing poverty, the bank helps improve the quality of life for millions of people on the continent.
(iii) Infrastructure Development: The ADB has played a key role in financing infrastructure projects in Africa, including transportation networks, energy generation, and water supply systems. By investing in infrastructure, the bank aims to enhance connectivity, foster economic integration, and improve living conditions for African populations.
(iv) Climate Change Mitigation: Recognizing the impact of climate change on Africa, the ADB has prioritized climate change mitigation and adaptation initiatives. This includes investing in renewable energy projects, promoting sustainable agricultural practices, and supporting climate-resilient infrastructure development.
(v) Regional Integration: The ADB has been actively working towards enhancing regional integration in Africa. It supports initiatives aimed at reducing trade barriers, improving cross-border infrastructure, and fostering economic cooperation among African countries. By promoting regional integration, the bank aims to stimulate economic growth and increase intra-African trade.
(vi) Gender Equality and Women Empowerment: The ADB recognizes the importance of gender equality and women’s empowerment for sustainable development in Africa. It has implemented various initiatives to support women entrepreneurs, increase access to finance for women, and promote gender-responsive policies and programs across the continent.
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