The question was not popular with the candidates. Moreover, the few that attempted it got low marks. The poor performance in the question could be traceable to candidates’ inability to identify relationship between unlimited ends and limited means. Candidates wrongly referred to scarcity as not available in the market. This error robbed them of enormous marks. Candidates were requested to identify the following details to score good marks:
(a) Economics seeks to study the relationship between ends and means. Ends are
unlimited while the means are limited. Scarcity means resources are limited in
relation to the ends. Economics is therefore concerned with allocating the
limited resources among the competing and unlimited wants.
(b)(i) Economics is a science because it adopts the scientific method.
The scientific method involves the following:
- Observation;
- Formulating a hypothesis;
- Collecting data;
- Organizing. analyzing the data, etc.
(ii) Economics is a social science because it studies human behaviour. e.g. If the price of a commodity rises, people will buy less, other things equal.
(c)Governments are faced with the problem of allocating scarce resources among competing unlimited wants.
In doing this, governments draw a scale of satisfied. In making choices, you forgo some other wants.
The forgone wants are the opportunity cost or real cost of the selected alternative.
