Economics Neco Answers 2022
a. Wants is something that is desired.
It is said that every person has unlimited wants, but limited resources.
b. Scarcity is the demand for a good or service is greater than the availability of the good or service.
c. Choice refers to the ability of a consumer or producer to decide which good, service or resource to purchase.
d. Scale of preference refers to a list of unsatisfied wants arranged in order of their relative importance.
e. Opportunity cost is the value of the next-best alternative when a decision is made.
1. Allocation of resources
Because of the study of economics, the government is enabled to judiciously allocate the resources which are not sufficient to all the sectors of the country
2. Preparation of Budget
It only takes the idea of economics before a good budget can be prepared which will serve a country and meet the most important needs.
3. Development of programs
The study of economics helps the government to create and develop some programs that are helpful to the mass.
In production, economics helps to know what is needed at the moment, what is no longer needed, and what will be needed in the future in order to enable the producers to adequately produce what is relevant, rather than running into losses in the quest of production.
5. Helps to solve economic problems
The study of the subject helps individuals, government, and firms handle their challenges using the various principles of the subject.
Monopoly is a situation where there is a single seller in the market.
1. High Cost of capital: It is really capital intensive for an individual to start up certain businesses.
2. Resource Control: A business of mining resources and utilising these resources can be monopolised if the firm or company controls all the resources.
3. Legal Protection: Governments can grant legal protection to businesses to operate a kind of trade that no other business or company can operate thereby creating a monopoly of such trade in the process
4. The business having the potential to yield low profits: Business strategy involves knowing the disparity between investment and dividend and making the right choice of business to enter.
Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
1. Price of the Product
There is an inverse (negative) relationship between the price of a product and the amount of that product consumers are willing and able to buy.
2. The Consumer’s Income
The effect that income has on the amount of a product that consumers are willing and able to buy depends on the type of good we’re talking about.
3. The Price of Related Goods
As with income, the effect that this has on the amount that one is willing and able to buy depends on the type of good we’re talking about.
4. The Tastes and Preferences of Consumers
This is a less tangible item that still can have a big impact on demand. There are all kinds of things that can change one’s tastes or preferences that cause people to want to buy more or less of a product.