Neco answers Economic 5/06/2018

Neco answers  Economic  5/06/2018

ECONOMICS

6bii
They discourage savings: what may be left after paying direct taxes, may not encourage any form of savings.  
Iii) they are difficult to access: this concerns profit tax becaus, firm declare false profits. 
Iv) direct taxes reduces people's purchasing power this is more pronounced  with income tax that reduces the income of workers.

7a
Money may be defined as anything that is generally acceptable as a medium of exchange for making payments, settlement of debts or other business obligations. 
7b
1) transactions motive: people desire to keep or hold money for the day to day transactions such as buying of foods stuffs and other family daily needs. 
Ii) precautionary motive: money is also held inorder to meet up with infor seen circumstances or contingencies or unexpected expenditures. 
Iii) speculative motive: people also keep money with the hope of using such money in making quick money.  For instance,  money may be held with the hope of giving it out in form of loan if the rate of interest is high. Therefore it is held for investment purpose.

Obj

1A2E3D4A5D6C7E8A9E10D
11B12E13E14A15B16D17A18A19B20C
21C22A23B24C25D26E27A28E29D30A
31E32C33E34A35C36B

37C38A39B40E
41E42B43A44E45A46A47C48B49E50B
51D52D53A54A55C56C

57B58E59B60C

1A2E3D4A5D6C7E8A9E10D
11B12E13E14A15B16D17A18A19B20C
21C22A23B24C25D26E27A28E29D30A
31E32C33E34A35C36B37C38A39B40E
41E42B43A44E45A46A47C48B49E50B
51D52D53A54A55C56C57B58E59B60C

 7b
Ii) precautionary motive: money is also held inorder to meet up with infor seen circumstances or contingencies or unexpected expenditures. 
Iii) speculative motive: people also keep money with the hope of using such money in making quick money.  For instance,  money may be held with the hope of giving it out in form of loan if the rate of interest is high. Therefore it is held for investment purpose.

 6a
Tax may be defined as a compulsory contribution imposed by a government authority on goods, individuals, corporate bodies  etc 
No(6b) 
1 they  may cause deflation: when they are high they reduced the volume of money in circulation than the available goods and services, thereby causing

No8)
a) National Budget: This is the financial statement of the total estimated revenue and proposed expenditure of a government in a given period usually a year
b) Balance Budget: This is when the total estimated revenue is equal to the proposed expenditure. This means that nothing will be left as reserve from the money collected in form of revenue.

No8)
a) National Budget: This is the financial statement of the total estimated revenue and proposed expenditure of a government in a given period usually a year
b) Balance Budget: This is when the total estimated revenue is equal to the proposed expenditure. This means that nothing will be left as reserve from the money collected in form of revenue. 
c) Budget surplus: A budget is called surplus, when the total estimated revenue is more than the proposed expenditure. In this type of budget, not all estimated revenue is proposed to be sent in the year. That is, there will be reserved.
d) Deficit Budget: This is the direct opposite of surplus budget, and it is when the governments total proposed expenditure for a period is more than the total estimated revenue.

No10a)
International trade may be defined as the exchange, buying and selling of goods and services between two or more countries.
No10b)
i) Inequitable Distribution of Natural Resources: Redistribution of unevenly distributed natural resources is one of the basic of international trade.
ii) Differences in the level of industrialization: This bring about disparity in the level of production which will necessitate exchange 
iii) The Quantity and Quality of Labour force: This leads to differences in the level of production which will give rise to exchange of goods and services
vi) Differences in climate conditions: Different agricultural products are produced in different areas as a result of climatic differences hence, the need for exchange.
v) Cost of Production: A country imports goods she can even produce locally if their cost are cheaper abroad.

(1a) 
Given Qd = 32 - 2/3p

When P = #6
Qd= 32 - 2/3(6)
Qd= 32 - 4
Qd= 28

When P = #12
Qd= 32 - 2/3(12)
Qd= 32 - 8
Qd= 24

When P = #20
Qd= 32 - 2/3(20)
Qd= 32 - 13.33
Qd= 18.67

When P = #27
Qd= 32 - 2/3(27)
Qd= 32 - 18
Qd= 14

When P = #32
Qd= 32 - 2/3(32)
Qd= 32 - 21.33
Qd= 10.67

In a tabular form, we have 
Under price(#)
6, 12, 20, 27, 32

Under quantity demanded 
28, 24, 18.67, 14, 10.67

(1b)
Draw the Graph 

(1c) 
Factors that cause change in demand: 
(i) Price 
(ii) Income of the consumer. 
(iii) Population. 
(iv) Invention of new commodities. 
(v) Period of festival.