Observation

This question was attempted by a good number of the candidates. The question required candidates to define scale of preference in the (a) part of the question, identify the ways through which scale of preference can assist an individual, a firm and a government in the (b) part of the question. Candidates were also required to explain any three reasons why the study of Economics is useful in the (c) part of the question. Most candidates were able to define scale of preference in the (a) part of the question correctly. Few of the candidates were able to identify the ways through which scale of preference can assist an individual, a firm and a government in the (b) part of the question. Majority of the candidates were unable to explain the reasons why the study of Economics is useful in the (c) part of the question. The performance of candidates in this question was average.

Candidates were expected to answer thus to obtain maximum marks:

(a) Scale of preference is the ranking or the arrangement of wants in the order of their importance.                                                                                                                                                                
(b)(i) As a result of limited resources, an individual cannot satisfy all his wants. He will therefore arrange his wants according to their order of importance and purchase first the one that gives him the highest amount of satisfaction.                                   

(ii)   As a result of scarcity of resources, a firm cannot produce all the goods she wants. The owners will therefore arrange their production according to which one will give the firm the highest amount of profit.                                                                         

(iii)  The government cannot produce all the goods and services the citizens want because of limited resources. She will therefore arrange the services according to the most urgent needs of the people to ensure maximum welfare.                                         

 
(c)(i)    The study of economics helps individuals, firms and governments to make rational use of the scarce resources. 
(ii)   It enables an individual to build up economic tools and principles which will assist in understanding issues confronting different societies (intellectual training).
(iii)  It enables an individual to easily understand government policies.
(iv)  It assists economic planners in the formulation of theories and policies that will assist in economic growth and development.  
(v)   It enables an individual to develop skills that will make him relevant and employable.
(vi)  It assists an individual to become an informed voter (rational choices).
(vii) It also assists individuals to understand and predict the economic trends with some
precision.
(viii)It helps to solve the basic economic problems of any society (what to produce, how to
produce and so on.)
(ix) It is a prerequisite for the study of some courses.eg Accounting / Human Resource etc.
(x)   It helps to enhance the understanding of economic relationships among individuals and
groups in a society e.g. between consumers and producers.