WAEC GCE 2023 Economics (ESSAY & OBJ) Questions And Answers(2nd December)

(3bi) Government:
It helps in assessing the impact of taxes on consumer behavior. Inelastic goods may bear the burden of taxes without a significant reduction in quantity demanded.
It affects decisions related to public services pricing, as inelastic goods may be charged higher without a sharp decline in demand.

(3bii) Monopolist:
It guides a monopolist in setting prices. If demand is elastic, lowering prices may increase total revenue, while inelastic demand allows for higher prices without a significant loss in revenue.

(3biii) Devaluation of Currency as it Affects Exports:
It helps understand how changes in the currency value affect the demand for exports. If the PED for exports is elastic, a devaluation may lead to a proportionally larger increase in export demand.

(3biv) Trade Unions’ Agitation for Wage Increase:
It provides insight into how consumers might react to changes in prices resulting from wage increases. If PED for certain goods is elastic, consumers may be more sensitive to price increases, and the impact on demand should be considered in wage negotiations.
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(5a)
Crop farming refers to the cultivation and production of plants for food, fiber, or other commercial purposes. It involves the systematic and organized growing of crops such as grains, vegetables, fruits, oilseeds, and cash crops on a large scale.

(5b)
(PICK ANY THREE)
(i) Food security: Crop farming plays a crucial role in providing a stable food supply for the population. It ensures that there is enough food available to meet the dietary needs of the people, reducing the dependence on imported food and improving food security.
(ii) Employment generation: Crop farming creates employment opportunities across various stages of the agricultural value chain, including cultivation, harvesting, processing, transportation, and marketing. It helps to alleviate unemployment and poverty, particularly in rural areas.
(iii) Income generation: Crop farming is a significant source of income for farmers and rural communities. It allows them to earn money through the sale of crops, which can be used for investment, education, healthcare, and improving their standard of living.
(iv) Contribution to GDP: Crop farming contributes to the Gross Domestic Product (GDP) of a country. It is an essential sector in the economy, driving economic growth and development through the production and sale of crops.
(v) Export earnings: Many countries rely on crop farming for export earnings. Cash crops such as coffee, cocoa, tea, cotton, and spices are in high demand globally. The export of these crops generates foreign exchange and contributes to trade balance and economic stability.
(vi) Industrial raw materials: Crop farming provides raw materials for various industries, such as textile, pharmaceutical, paper, and biofuel industries. Crops like cotton, jute, medicinal plants, and oilseeds are used to produce essential products.
(vii) Environmental sustainability: Crop farming promotes environmental sustainability through practices like crop rotation, organic farming, and agroforestry. It helps to conserve soil fertility, support biodiversity, and reduce the impact of climate change.

(5c)
(PICK ANY THREE)
(i) Increased food production: Governments aim to enhance agricultural productivity and output to meet the growing demands of the population. This includes providing farmers with improved seeds, fertilizers, and farming techniques to achieve higher yields.
(ii) Rural development: Agricultural policies focus on promoting rural development by providing necessary infrastructure and services to rural communities. This includes improving access to education, healthcare, roads, markets, and credit facilities to uplift the living standards of rural areas.
(iii) Poverty reduction: Agricultural policies aim to reduce poverty by empowering smallholder farmers and ensuring equitable access to resources and markets. Governments provide support and incentives to small farmers to boost their productivity and income, thus reducing poverty levels.
(iv) Agricultural diversification: Governments encourage farmers to diversify their crop production and engage in value-added activities. This helps to reduce dependency on a single crop, increases resilience to climate change, and enhances income stability for farmers.
(v) Technology adoption: Governments promote the adoption of modern agricultural technologies and innovation to increase productivity and efficiency in the sector. This includes the use of improved seeds, mechanization, precision farming techniques, and information and communication technologies (ICT) in agriculture.
(vi) Sustainable agriculture: Governments strive to promote sustainable farming practices that minimize negative impacts on the environment. This includes the promotion of organic farming, conservation agriculture, water-efficient irrigation, and the use of renewable energy in agriculture.
(vii) Market access and trade promotion: Governments facilitate market access for farmers by improving transportation infrastructure, establishing market information systems, and negotiating favorable trade agreements. This enables farmers to access domestic and international markets, increasing their income and market opportunities.
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(6a)
Indigenization refers to the process of transferring ownership, control, and management of companies, industries, or economic resources from foreign to local individuals or entities. It involves promoting and implementing policies that prioritize the involvement and development of local communities and businesses

(6bi)
-A SUGAR CANE PROCESSING PLANT-
(i) Proximity to the source of sugar cane: The plant should be located close to areas where sugar cane is grown to minimize transportation costs and ensure a steady supply of raw materials.
(ii) Availability of water: Sugar cane processing requires a significant amount of water, so the plant should be located near a reliable water source.
(iii) Infrastructure: The plant should be situated in an area with good transportation networks, such as roads and railways, to facilitate the movement of raw materials and finished products.
(iv) Access to skilled labor: The availability of skilled workers who are knowledgeable in sugar cane processing techniques is an important consideration.
(v) Environmental factors: The plant should be situated in an area that minimizes the impact on the environment, such as avoiding environmentally sensitive areas or areas prone to water scarcity.

(6bii)
-CERAMIC TILE FACTORY-
(i) Access to raw materials: The factory should be located near sources of clay and other raw materials used in ceramic tile production to minimize transportation costs.
(ii) Proximity to markets: The factory should be situated in or near areas with a high demand for ceramic tiles to reduce transportation costs and ensure a timely delivery of products.
(iii) Infrastructure: Similar to the sugar cane processing plant, a ceramic tile factory should be located in an area with good transportation networks for efficient movement of raw materials and finished products.
(iv) Skilled labor: The availability of skilled workers with knowledge in ceramic tile production is crucial for the success of the factory.
(v) Environmental factors: The factory should be located in an area that minimizes environmental impacts, such as avoiding locations near protected areas or sensitive ecosystems.

(6c)
(PICK ANY FOUR)
(i) Economic growth: Localizing industries can stimulate economic growth by promoting the development of local businesses, creating job opportunities, and increasing tax revenues.
(ii) Reduced dependence on imports: Localization reduces dependence on imported goods, leading to increased self-sufficiency and a more stable economy.
(iii) Enhanced competitiveness: Localized industries can become more competitive by reducing transportation costs, optimizing supply chains, and having a better understanding of local market dynamics.
(iv) Increased innovation: Localization encourages the development of innovation and technological advancements as local businesses focus on meeting the specific needs and preferences of the local market.
(v) Environmental sustainability: Localization can contribute to environmental sustainability by reducing the carbon footprint associated with long-distance transportation of goods and promoting sustainable production practices.
(vi) Social development: Localization can lead to social development by creating employment opportunities, improving living standards, and fostering the development of local communities.
(vii) Cultural preservation: Localization can help preserve local cultures and traditions by promoting the production and consumption of locally made products, which often reflect the unique heritage of the region.
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(7a)
Public finance refers to the study of government revenue, expenditures, and debt management. It involves analyzing how the government raises funds (through taxes and other sources), allocates those funds to provide public goods and services, and manages its overall financial resources.

(7b)
(PICK ANY THREE)
(i) User fees and charges: Governments charge fees for specific services or activities such as issuing passports, driver’s licenses, or admission to national parks.
(ii) Profits from state-owned enterprises: Governments may own and operate certain businesses, such as energy companies or national airlines, from which they generate profits.
(iii) Royalties and licensing fees: Governments receive payments from companies or individuals for the use of natural resources or intellectual property rights.
(iv) Fines and penalties: Governments collect fines and penalties for violations of laws or regulations, such as traffic fines or penalties for tax evasion.
(v) Grants and donations: Governments receive grants and donations from international organizations, other governments, or private entities for various purposes, such as development projects or humanitarian aid.

(7ci)
Control inflation: To control inflation, the government can adopt contractionary fiscal policies. This involves reducing government spending and increasing taxes to decrease aggregate demand in the economy. By reducing the money supply, the government can lower prices and control inflation.

(7cii)
Reduce unemployment: Fiscal measures can be used to reduce unemployment by adopting expansionary policies. The government can increase spending on infrastructure projects, education, and healthcare, which creates jobs and stimulates demand in the economy. Additionally, tax cuts can incentivize private sector investments and stimulate economic activity, leading to job creation.