# Waec 2022 Economics questions and answers

Date: 7th June 2022

Economics 2 (Essay)
09:30am – 11:30am

Economics 1 (Objective)
11:30am – 12:30pm

1DBCDCDBCCD
11BAABABDBDB
21BCBDBCCACC
31CBBDDBCDBA
41BBCBDCCACC.

# ESSAY:

Please Pick One Out Of 1&2

(1a)
GROSS DOMESTIC PRODUCT (GDP)

Wages and salaries 250
Income from self employment 120
Rent 25
Interest 10
Royalties 2
Profit & dividend 35
GDP = 442

(1b)
GROSS NATIONAL PRODUCT (GNP)

GNP = GDP + Net factor income
GNP = 442+ income received from Abroad – Income paid Abroad

GNP = 442+(50-75)
= 442+(-25)
= 442-25
= 417

(1c)
NET NATIONAL PRODUCT (NNP)

NNP = GNP – Depreciation
NNP = 417 – 3
= 414

(2ai)
X is demand curve
Y is supply curve
Z is supply curve

(2aii)
The supply curve shift from Y to Z

(2bi)
Before the introduction of subsidy
\$15×20 = \$300

(2bii)
After the introduction of subsidy
\$10×40 = \$400

(2c)
Percentage increase = \$400-\$300 = \$100
100/300 × 100/1 = 33.3%

(2di)
% change in quantity demanded/ % change in price = 100/33.3 = 3.0

% change in quantity demanded= change/old × 100/1
= 20/20 × 100/1
= 100%

% change in price = change/old × 100/1
= 5/15 × 100/1 = 33.3%

(2dii)
It is elastic because the coefficient is greater than 1.

(4a)
(i)Labour force: Labour force can be defined as the total number of persons available to supply the labour for the production of economic goods and services. In other words, it is the total number of people of working age in a country who are able and willing by law to work.

(ii)Efficiency of labour: Efficiency of labour may be defined as the ability of labour to increase output without increasing the quantity of labour. Increase in efficiency is usually expressed in terms of increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced.

(4b)
(i)Age structure of the population: The structure of a country’s population is a significant determinant of the size of the labour force. The lower the dependant people, the higher the supply of labour and vice versa. In otherword, the labour force will increase in a country with a greater number of its people between the ages of 18 and 65 years.

(ii)Role of women in the society: In some societies, women are usually prevented from engaging in gainful employment because of religious belief, social and cultural factors and this affects the size of labour force.

(iii)Number of working hours and working days: The number of working hours per day and the number of working days in a week or a year also helps to determine the supply of labour.

(iv) The number of disabled: When the number of disabled persons is high especially within the working population, the supply for labour will be low.

(v) The number of people unwilling to work: There are certain number of able bodied people who are also between the age bracket of 18 and 65 years but are unwilling to work. If their population is high, it will affect the size of supply of labour.

(7a)
(i) A Merchant Bank is that Mortgage is a bank or company which offers a loan with their own funds or from warehouse lenders WHILE A merchant bank is an institution which provides the services of finance, underwriting, offering business loan and advice or consultancy on finance.

(ii) Commercial Bank is the bank organized to perform public utility banking services, such as accepting deposits, lending money, etc. On the other hand, development bank refers to a multi-purpose financial undertaking set up to provide financial aid to the industrial and agricultural sector, to encourage development.

(7b)
(i) Agency functions: commercial banks are already agents of the banking system, but they can also be personal agents to their customers. An agent is an individual or institution that carries out activities, in this case, financial operations, on behalf of the principal (who is the customer) for a few known as a commission.

(ii) Credit Creation: commercial banks are perhaps the only financial institutions with this unique function. Commercial banks create credit through accepting deposits and providing loans, pushing money into the economy.

(iii) Transfer of funds: the transfer of funds from a customer’s account to another account is another vital function of banks. Fund transfer is a valid means of paying for transactions, as well as other financial activities. Transfer of funds can be carried out through several ways such as drafts, standing orders, cheques, USSD platforms, and electronic banking.

(iv) Provision of loans: besides accepting deposits, another function of commercial banks is the provision of loans. The provision of funds to those who require them for transactions is a vital role commercial banks play. Nowadays, customers can now have access to instant loans from commercial banks.

(8a)
Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies.

(8b)
(i)Political Instability in member states; This results in different approach to ECOWAS issues by leaders of member states.

(ii)Inadequate finance: Many members states do not fulfill their financial obligation as at and when due. This is crippling the effective operation
of ECOWAS.

(iii)Colonial linkage to erstwhile master; is another factor affecting ECOWAS. Francophone
nations that are members of ECOWAS may not lend their
weight to matters of the organisation that will negatively
affects France.

(8c)
(i)Road construction between big cities. The highways Lagos-Abidjan, Nouakchott-Lagos have made commuting much easier that it was before. The road network Elubo – Alflao – Lagos is one of the achievements.

(iii)The relations between the Anglophone and Francophone have been stabilized. It has been done thanks to the ECOWAS passport. It has significantly eased the movement of people within those areas.

(iii)Telephone network for the member states. Nowadays, interconnection is available for all countries of the African Union.