[WASSCE BECE NOVDEC NABPTEX-0547316472]

A village consists of twenty (20) households with the following annual incomes-

(Incomes $00) 30 20 50 40 60 40 40 50 20 60 80 40 20 20 70 40 70 30 40 80

(a) Determine the

i) mean income:

ii) modal income;

iii) median income.

(b) What is the range of income distribution?

(c) Calculate the total tax that could be generated from the village if

i) a flat rate tax of 7% is imposed on all households;

ii) a flat rate tax of 15% is imposed on all households earning $4,000 per annum and above.

2

(a) Why is scarcity a fundamental problem in Economics?

(b) Give a reason on why Economics is a

i) science;

ii) social science

(c) How do governments solve the problem of scarcity?

3.

(a) Outline the chain of distribution for manufactured consumer goods.

(b) Explain the functions of the

i) wholesaler

ii) retailer.

4

(a) Define labour

(b) Give four factors that affect the efficiency of labour in your country.

5. (a) With examples. distinguish between direct and indirect tax,

(b) Explain any four problems of tax collection in any West African country.

6.

(a) Distinguish between the following pairs of cost concepts.

i) Fixed cost and variable cost.

ii) Real cost and money cost

iii) Implicit cost and explicit cost.

(b) (I) What would you recommend to a firm whose average cos