# Sure 2017/2018 Nabteb Gce Economics(Obj and Essay) Questions And Answers Now Available

Economics OBJ:
1-10: BDDCCCBBAB
21-30: BCCBBAABBA
41-50: ABABBCACCA

2017 NABTEB GCE ECONOMIC ESSAY ANSWERS.
SECTION A. YOU ARE TO ANSWERS ONE QUESTION IN THAT PART.

SECTION B. YOU ARE TO ANSWERS 4 QUESTIONS IN THAT PART.

SECTION A
NO1

A]

TABULATE.

PRICE QD
2012. 25000 250

2013 30,000. 210

solutions

Percentage charge in Quantity demanded
New Qd-Old Qd/Old Qd * 100
210-250/250* 100
= 16%

b]

percentage change in Income
30,000-25000/25000 * 100
5000/25000* 100
= 20%

Income elasticity = D% in Qd/D% income
= 15/20
= 0.75

C]
the co-efficient Of Elasticity Of Demand Is in Elastic. It is in Elastic Because is less Than 1

SECTION B.

4a) Co-operative society care formed by two or more persons but there is no stipulated maximum numbers of person

Bi)Formation
ii)Ownership
iii)Objective
iv)Management

Ci) Encouragement of savings
ii)Financial assistance

5)Labour force can be defined as the total number of available persons to supply the labour for the production of economic goods and services

Bi)Size of population of a country: The larger the population ,the greater the number of labour to be supplied

ii) Retirement Age: The age of exit in public employment will determine the labour force

iii) Official school leaving age:If the school leaving age is low,the proportion of labour force will high

iv)Migration: The rate of migration will also affect the size of labour market

N07a

The Balance of Payments is comprised of two main components:
*.The Current Account (trade in goods, services + transfer payments and investment incomes)
*.The Financial Account (used to be called capital account; this is capital flows such as foreign direct investment)

NO7b

1. Adjustment through Exchange Depreciation (Price Effect):
Under flexible exchange rates, the disequilibrium in the balance of payments is automatically solved by the forces of demand and supply for foreign exchange. An exchange rate is the price of a currency which is determined, like any other commodity, by demand and supply.

2. Devaluation or Expenditure-Switching Policy:
Devaluation raises the domestic price of imports and reduces the foreign price of exports of a country devaluing its currency in relation to the currency of another country. Devaluation is referred to as expenditure switching policy because it switches expenditure from imported to domestic goods and services.

3. Direct Controls:
To correct disequilibrium in the balance of payments, government also adopts direct controls which aim at limiting the volume of imports. The government restricts the import of undesirable or unimportant items by levying heavy import duties, fixation of quotas, etc.

4. Adjustment through Capital Movements:
A country can use capital imports to correct a deficit in its balance of payments. A deficit can be financed by capital inflows. When capital is perfectly mobile within countries, a small rise in the domestic rate of interest brings a large inflow of capital.

NO8 A

Trade protection is the deliberate attempt to limit imports or promote exports by putting up barriers to trade. Despite the arguments in favour of free trade and increasing trade openness, protectionism is still widely practiced.

NO8 B

1.Mobility in Factor Of Production
*.Domestic Trade: Free to move around factors of production like land, labor, capital and labor capital and entrepreneurship from one state to another within the same country
*.International Trade: Quite restricted
2.Movement Of Goods
*.Domestic trade: easier to move goods without much restrictions. Maybe need to pay sales tax,etc
*.International Trade: Restricted due to complicated custom procedures and trade barriers like tariff, quotas or embargo
3.Usage of different currencies
*.Domestic trade: same type of currency used
*.International trade: different countries used different currencies
*.Domestic trade: limited market due to limits in population, etc
5.Language And Cultural Barriers
*.Domestic trade: speak same language and practice same culture
*.International trade: Communication challenges due to language and cultural barriers

NO8 C

i. product development improvements so that they can continuously improve and diversify.

ii. It provides a foundation for international growth.
Companies that are involved in exporting can achieve levels of growth that may not be possible if they only focus on their domestic markets. This allows brands and businesses an opportunity to achieve sustained revenues from a diversified portfolio of customers in several markets instead of a limited customer base in a single home market.

iii. International trade improves financial performance.
Brands and businesses which assert themselves in foreign trade work can increase their financial performance. This allows them to augment the returns they achieve on their investments into research and development. By rotating the products or services through the global market, the commercial lifespan of each opportunity can be amplified, expanding what existing products and services can provide. This benefit can even be achieved if a domestic market is no longer interested.

IV. It spreads out the risk a brand and business must assume.
Organizations can better protect themselves from risk thanks to international trade because of the amount of diversification that can be achieved. Whether it is a financial disaster, like the Great Recession of 2007-2009, or a natural disaster like Hurricane Katrina, a company with an international presence can survive and even maintain profitability without domestic customer support. A home market may be unstable, but international trade can still let the brand and business be stable.

V. International trade encourages market competitiveness.
When a brand and business competes in several markets simultaneously, then it must focus on its competitiveness for it to be able to thrive. By observing a larger range of trends because of their greater level of global market access, brands and businesses can focus on quality, design,

ESSAY COMPLETED

*Economics*
4a) Co-operative society care formed by two or more persons but there is no stipulated maximum numbers of persons

Bi)Formation
ii)Ownership
iii)Objective
iv)Management

Ci) Encouragement of savings
ii)Financial assistance

5)Labour force can be defined as the total number of available persons to supply the labour for the production of economic goods and services

Bi)Size of population of a country: The larger the population ,the greater the number of labour to be supplied

ii) Retirement Age: The age of exit in public employment will determine the labour force

iii) Official school leaving age:If the school leaving age is low,the proportion of labour force will high

iv)Migration: The rate of migration will also affect the size of labour market

#### Be the first to comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.