Observation

This question was very popular among students, majority of whom scored relatively high marks. Candidates were required to state Professor Robbin’s definition of Economics, explain some concepts and outline reasons for the study of Economics as a subject in the (a), (b) and (c) parts of the questions respectively. Candidates were expected to answer thus to score higher marks.

(a)        “Economics is the science which studies human behaviour as a relationship between ends and scarce       means which have alternative uses.”                                                                                                                                    

b)(i)     Opportunity cost:- This is the alternative forgone or sacrificed any time an             individual makes a choice OR It is the expression of cost in terms of forgone          alternative.
(ii)   Scale of preference:-   This is the list of the wants of an individual in order of priority        starting with the most important to the least important.
(iii)  Production possibility curve:- This is a curve that shows the possible combinations of        two commodities that can be produced in an economy with the available resources and        technology.

(c)(i)        It helps to solve the basic economic problems of the society.
(ii)       It helps in making rational choices by drawing scales of preference.
(iii)      It helps to promote welfare by emphasizing opportunity cost.
(iv)      It gives intellectual training on economic problems by training the mind to reason          logically.
(v)       It helps to predict economic trends in an economy with some level of precision.
(vi)      It is useful in the study of other disciplines like engineering, business administration      etc.
(vii)     It helps the individual to understand the economic policies of government e.g. budget.
(viii)    It helps individuals to acquire skills which are useful in various jobs and professions.