WASSCE: ECONOMICS-THEORY-2009
1. Population Growth Rate Table
1a. Determine L, P, Q, R, S and TUsing the formula:
$ \text{Natural Growth Rate} = \text{Birth Rate} - \text{Death Rate} $
We fill in the missing values below:
| Year | Birth Rate per ‘000 | Death Rate per ‘000 | Natural Growth Rate |
|---|---|---|---|
| 1971 | 45.0 | 32.0 | 13.0 ← L |
| 1972 | 39.0 | 26.5 ← P | 12.5 |
| 1973 | 26.0 | 22.0 | 4.0 ← Q |
| 1974 | 27.0 ← R | 22.5 | 4.5 |
| 1975 | 26.5 | 22.5 | 4.0 ← S |
| 1976 | 20.5 | 17.5 ← T | 3.0 |
Answers:
L = 13.0
P = 26.5
Q = 4.0
R = 27.0
S = 4.0
T = 17.5
1b. Bar Chart of Natural Growth Rate (1971–1976)
We use the values of the natural growth rates to draw the bar chart: $ \text{Bar Chart of Natural Growth Rate} $ \begin{array}{c|c} \text{Year} & \text{Natural Growth Rate} \\ \hline 1971 & 13.0 \\ 1972 & 12.5 \\ 1973 & 4.0 \\ 1974 & 4.5 \\ 1975 & 4.0 \\ 1976 & 3.0 \\ \end{array}
1c. Three reasons for changes in birth rate:
1. Improvement in education, especially for women, leads to fewer births.
2. Family planning programs and access to contraceptives reduce birth rates.
3. Urbanization and higher cost of living encourage smaller families.
2. Household Incomes
2a. Incomes:
$20, 20, 50, 40, 60, 40, 40, 50, 20, 60, 80, 40, 20, 20, 70, 40, 70, 30, 40, 80$
i. Mean
Sum = 1,030
Number of households = 20
Mean = $ \frac{1030}{20} = 51.5 $
ii. Modal Income
Most frequent income = 40 (appears 6 times)
Mode = 40
iii. Median Income
Sorted: $20, 20, 20, 20, 20, 30, 40, 40, 40, 40, 40, 40, 50, 50, 60, 60, 70, 70, 80, 80$
Median = $ \frac{40 + 40}{2} = 40 $
2b. Range of income
Highest income = 80
Lowest income = 20
Range = $ 80 - 20 = 60 $
2c. Total Tax Calculation
i. Flat rate 7%
Total Income = 1030
Tax = $ 7% \times 1030 = 0.07 \times 1030 = 72.1 $
ii. 15% on incomes $40 and above
Qualifying incomes: $40 (x6), 50 (x2), 60 (x2), 70 (x2), 80 (x2)$
Sum of these = $40×6 + 50×2 + 60×2 + 70×2 + 80×2 = 240 + 100 + 120 + 140 + 160 = 760$
Tax = $ 15% \times 760 = 0.15 \times 760 = 114.0 $
3. Scarcity and Economics
3a. Why is scarcity a fundamental problem?
Scarcity means resources are limited but human wants are unlimited. Because of this, choices must be made on how to use resources wisely.
3b. Why economics is a:
i. Science: Economics uses observation, data collection, and analysis like other sciences.
ii. Social science: It studies human behaviour in society, especially how they use limited resources.
3c. How government solves scarcity:
1. Through budgeting and planning.
2. By allocating resources to sectors like health, education, and agriculture.
3. By encouraging production and investments.
4. Chain of Distribution
4a. Chain of Distribution:
Manufacturer → Wholesaler → Retailer → Consumer
4b. Functions
i. Wholesaler: Buys in bulk from producers and sells in smaller quantities to retailers.
ii. Retailer: Sells goods directly to final consumers.
5. Labour
5a. Define Labour
Labour is the human effort used in the production of goods and services.
5b. Factors affecting efficiency of labour in Nigeria:
1. Education and training
2. Health and nutrition
3. Working conditions
4. Motivation and wages
