(a) What is public recurrent expenditure? [5 marks]
(b) Give five reasons for the rapid increase in government expenditure in your country. [15 marks]
(a) Distinguish between a cheque and a bank note [8 marks]
(b) What are the main problems of trade by barter? [12 marks]
Explain the following systems of agriculture as practiced in your country:
(a) subsistence farming; [4 marks]
(b) co-operative agriculture; [4 marks]
(c) plantation agriculture; [4 marks]
(d) mechanized agriculture; [4 marks]
(e) peasant farming. [4 marks]
(a) Define the profit of a firm [4 marks]
(b) With appropriate formula, explain the following revenue and cost concepts:
(i) total revenue (TR); [4 marks]
(ii) average revenue (AR): [4 marks]
(iii) marginal revenue (MR); [4 marks]
(iv) average fixed cost (AFC). [4 marks]
(a) What is a market? [4 marks]
(b) Explain the main features of a perfectly competitive market. [16 marks]
Give four reasons why the governments of West African countries have found the policy of privatization attractive. [20 marks]
(a) Define the term limited liability [4 marks]
(b) Explain any four problems of statutory public corporations in your country [16 marks]
(a) What is supply? [5 marks]
(b) Describe any five determinants of supply. [15marks]
(a) Explain the term internal economies of scale. [4 marks]
(b) Outline any four economies of scale a firm enjoys as it grows in size. [16marks]
The table below shows the budgetary allocation of a country to selected sectors of the economy in a particular year. Study the table carefully and answer the questions that follow.
| Sectors | Amount ( $ Million) |
| Education | 6,250 |
| Mining | 2,150 |
| Agriculture | 4,300 |
| Communication | 2,400 |
| Health | 2,900 |
(a) Present the above information contained in the table in the form of a pie chart. (Show your workings clearly). [12 marks]
(b) Distinguish between a budget surplus and a budget deficit. [8 marks]
The demand function for a commodity is given as Qd = 21 – 3p.
(a) Use the demand function to complete the table below. [6 marks]
| Price $ | 0 | 1 | 3 | 4 | 5 | 6 |
| Quantity demanded (Kg) |
(b) Draw the demand curve for the completed schedule in 1(a) (Use of graph sheet is essential) [8 marks]
(c) Outline any three factors affecting demand [6 marks]
The Economic Commission for Africa is an agency of the
- A. Organization of African Unity
- B. African Development Banks
- C. European Union
- D. United Nation Organization
Balance of payment surplus implies that the value of the country’s
- A. exports exceeds its imports
- B. imports exceed its exports
- C. exports is equal to its imports
- D. terms of trade is constant
Invisible trade refers to trade in?
- A. services
- B. goods and services
- C. tangible goods
- D. crude oil
Trades among nations is desirable because
- A. enables people in a country to know those in other countries
- B. makes it possible for people in a country to enjoy the goods and services produced in other countries
- C. enables residents in country a to understand the language of residents of other countriesd
- D. makes it possible for a country to have the currencies of other countries
An important feature of economic development is
- A. population explotion
- B. reduction in exports
- C. high literacy level
- D. low exports
Which of the following will have a more destabilizing effect on the economy?
- A. a tax on the price of vehicle
- B. a tax on petrol
- C. a decrease in the supply of vehicle
- D. moderate increase in wages
All indirect taxes tend to be
- A. progressive
- B. regressive
- C. certain
- D. equitable
Public finance is basically an analysis of the
- A. income and expenditure of government
- B. expenditure patterns of the government
- C. current and capital receipts of the government
- D. current and capital expenditure of the government
Creation of money by commercial bank is done by
- A. increasing the cash ratio
- B. printing money
- C. lending to borrowers
- D. issuing cheques