2015 - WAEC Economics Past Questions and Answers - page 5

An economic plan is an outline of schemes designed to achieve certain pre-determined economic objectives, in a particular order of priorities within a specified period of time. This is the technique that a state follows to achieve economic development.

The main features of economic planning are as follows:

1. Determining the objectives that are to be achieved.

2. Estimating the resources that are available in the country.

3. Determining the order in which the objectives are to be achieved.

4. Designing suitable schemes for realizing of the objectives.

5. Determining the plan outlay and investment.

6. Allocation of resources between different sectors as per the priority of objectives

7. Establishing a body for the formulation, organization and appraisal of the plans

If the prices of a country's exports rise relative to the prices of its imports, one says that its terms of trade have moved in a favourable direction, because, in effect, it now receives more imports for each unit of goods exported.

An economic union is an agreement between two or more nations to allow goods, services, money and workers to move over borders freely. The countries may also coordinate social and financial policies to support this common market.

Methods of correcting adverse balance of payments

Well- known Methods of Correcting in Adverse Balance of Payment

• Trade Policy Measures: Expanding, Exports and Restraining Imports
• Expenditure-Reducing Policies
• Tight Monetary Policy
• Contractionary Fiscal Policy
• Expenditure – Switching Policies: Devaluation
• Devaluation: Marshall Lerner Condition

The World Bank is a vital source of financial and technical assistance to developingcountries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development. 

Inditect tax is a tax levied on goods and services rather than on income or profits. Thus we have;

Indirect tax = customs and excise duties + value added tax
300.20 + 100.00 = 400.20

Total revenue  can be written as P × Q, which is the price of the goods multiplied by the quantity of the sold goods.
Non-tax revenue or non-tax receipts are revenue not generated from taxes. They include;

rents and Royalties + fees and fines
70.00 + 60.00 = 135.00m