WAEC Past Questions and Answers - Page 3023

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

Raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished products, energy, or intermediate materials which are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are highly important with regard to producing other products.

if the demand for a foreign currency exceeds its supply, the exchange rate will increase rate will increase. This will cause the local currency to suffer. because more of the local currency will be used to exchange for less of the foreign currency.

One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.

Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account.  A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.