2002 NECO Economics Past Questions & Answers

Question 1

To discourage the consumption of harmful commodities, government should tax such commodities if they have

Accepted Answer

A. elastic demand

Answer

B. inelastic demand

Answer

C. negative demand

Answer

D. positive demand

Answer

E. unitary demand

Question 2

When combination of two goods which a consumer derive equal satisfaction is plotted on a graph, the graph is known as

Accepted Answer

B. indifference curve

Answer

A. demand curve

Answer

C. opportunity curve

Answer

D. utility curve

Answer

E. supply curve

Question 3

The main disadvantages of deflationary policies is

Accepted Answer

D. unemployment in the country

Answer

A. full employment in the country

Answer

B. increasing cost of living

Answer

C. improved standard of living

Answer

E. under employment in the country

Question 4

The willingness of an individual backed up with purchasing power at a given time is

Accepted Answer

C. effective demand

Answer

A. demand

Answer

B. desire

Answer

D. utility

Answer

E. want

Question 5

If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

Accepted Answer

B. deficit budget

Answer

A. balanced budget

Answer

C. favorable budget

Answer

D. surplus budget

Answer

E. unfavorable budget

Question 6

Transcationary motive implies, holding money

Accepted Answer

B. for day to day expenses

Answer

A. for future investment

Answer

C. for unforeseen contingencies

Answer

D. to settle previous debts

Answer

E. to buy share in the stock exchange market

Question 7

The contribution of petroleum to the economy of nigerian is most prominent in the area of

Accepted Answer

D. revenue generation

Answer

A. employment generation

Answer

B. fuel provision

Answer

C. infrastructural development

Answer

E. technical know-how

Question 8

Tc/Q =

Accepted Answer

B. Average coat

Answer

A. marginal cost

Answer

C. total cost

Answer

D. equilibrium level

Question 9

One of the function of united nation conference on trade and development (UNTAD) is to

Accepted Answer

C. increase share of less developed countries in world trade

Answer

A. carry out feasibility study for projects in less developed countries

Answer

B. increase impact of developed countries over less developed countries

Answer

D. make goods available in developed countries

Answer

E. transfer technology from developed to less developed countries

Question 10

The comparison of the standard of living between Nigeria and Ghana is best down through the use of

Accepted Answer

E. per capita income

Answer

A. gross domestic product

Answer

B. gross National incomes

Answer

C. Net disposable income

Answer

D. Net National income

Question 11

In a two-sector economy, income is a function of

Accepted Answer

A. consumption + investment

Answer

B. consumption + investment + tax

Answer

C. consumption + investment + expenditure

Answer

D. consumption + exports + imports

Answer

E. saving + investment

Question 12

The act of cultivating land and rearing of animal for man’s use is

Accepted Answer

A. agriculture

Answer

B. mono culture

Answer

C. forestry

Answer

D. aqua-science

Answer

E. horticulture

Question 13

Which of the following is NOT a factor that brings about changes in demand?

Accepted Answer

D. the price of the good or service

Answer

A. a change in real income

Answer

B. government policy

Answer

C. increase in population

Answer

E. taste and fashion

Question 14

The middle value of an array figure arranged in descending order is referred to as the

Accepted Answer

C. Median

Answer

A. equation

Answer

B. mean

Answer

D. mode

Answer

E. Variance

Question 15

The Nigerian indigenization decree process involves

Accepted Answer

E. 2 phases

Answer

A. 5 phases

Answer

B. 6 phases

Answer

C. 4 phases

Answer

D. 3 phases

Question 16

The main function of retailer in the distribution channel is

Accepted Answer

B. bulk breaking

Answer

A. advertising the product on behalf of manufacturers

Answer

C. branding and packaging of good

Answer

D. direct customer services

Answer

E. storage facilities for finished products

Question 17

If commodities A & B are jointly demanded, what will be the effect of an increase in the price of A on the demand for commodity B?

Accepted Answer

A. decrease in demand for commodity B

Answer

B. decrease in price of commodity B

Answer

C. demand for commodity B remain constant

Answer

D. increase in demand for commodity B

Answer

E. increase in the price of commodity B

Question 18

Which of these is NOT associated with the problem of internal trade?

Accepted Answer

B. lack of specialization

Answer

A. bargaining

Answer

C. market trade unions

Answer

D. natural barriers

Answer

E. large number of middlemen

Question 19

If the consumer demand for product X increases, as the demand for product, Y increases then the goods X and Y are

Accepted Answer

A. complimentary goods

Answer

B. composite goods

Answer

C. derived good

Answer

D. independent goods

Answer

E. substitute good

Question 20

The following are reward for factors of production EXCEPT

Accepted Answer

D. rates and deposits

Answer

A. interests

Answer

B. profit

Answer

C. Rent and commissions

Answer

E. wage and salaries

Question 21

Long-run in economic mean a period of time in which

Accepted Answer

B. all factor inputs are variable

Answer

A. all factor inputs are not being used

Answer

C. all factor inputs are fixed

Answer

D. only few factor inputs are variable

Answer

E. firms are not producing at all

Question 22

The demand for labour in an economy is a depiction of

Accepted Answer

E. derived demand

Answer

A. competitive demand

Answer

B. Composite demand

Answer

C. Complementary demand

Answer

D. Deductive demand

Question 23

In income determination theory, acceleration principles shows that

Accepted Answer

A. income is the cause, while investment is the effect investment

Answer

B. income and investment are both causes

Answer

C. income and investment are both effects

Answer

D. incomes is of on effect on investment

Answer

E. investment is the causes, while income is the effects

Question 24

The 1962-1968 development plan in nigerian failed because of

Accepted Answer

E. over dependency on foreign capital

Answer

A. absence of indigenous bank

Answer

B. higher exchange rate

Answer

C. non availability of finance house

Answer

D. movement of colonial masters

Question 25

Which of the following is NOT a feature of capitalism ?

Accepted Answer

A. detailed economics planning

Answer

B. Free enterprise

Answer

C. competition

Answer

D. private ownership of property

Answer

E. Entrepreneurs and the pursuit of profit

Question 26

One of the fundamental economic problem of every society is

Accepted Answer

A. allocation of scarce resource

Answer

B. availability of market

Answer

C. consumption pattern of inhabitant

Answer

D. presence of middle man

Answer

E. inadequate labour force

Question 27

Which of these is a necessary condition for trade by barter?

Accepted Answer

A. double coincidence of wants

Answer

B. double exchange rate

Answer

C. durability of goods

Answer

D. divisibility of commodities

Answer

E. homogeneity of goods

Question 28

Disposable income in national income accounting is an income which

Accepted Answer

B. is available for consumption and saving

Answer

A. cannot be used again

Answer

C. is a available to disabled people

Answer

D. must be wasted once and for all

Answer

E. pensioners receive from the treasury board

Question 29

A market situation with few sellers and many buyers is called

Accepted Answer

C. oligopoly

Answer

A. monopoly

Answer

B. duopoly

Answer

D. perfect competition

Answer

E. monopsony

Question 30

In production, total cost comprises of

Accepted Answer

C. variable cost and fixed cost

Answer

A. averages cost and marginal cost

Answer

B. variable cost and averages cost

Answer

D. marginal cost and variable cost

Answer

E. fixed cost and averages cost

Question 31

An economic system in which the decision on what and how to produce is determined by the individual is called

Accepted Answer

A. capitalism

Answer

B. communism

Answer

C. Socialism

Answer

D. traditionalism

Answer

E. welfarism

Question 32

The formular used by the Expenditure approach to calculate National income is

Accepted Answer

C. Y = C + I + G + X – M

Answer

A. Y=C + I + X - M –G

Answer

B. Y= C + X – M – I + G

Answer

D. Y = C – I + X – M + G

Answer

E. Y = C + G – X + M – I

Question 33

If the prices of a commodity increases from N8.00 to N10.00 and the demand decreases from 100 to 80 respectively, what is the price elasticity of demand for the commodity?

Accepted Answer

B. 0.8

Answer

A. 0.5

Answer

C. 1

Answer

D. 1.5

Answer

E. 1.8

Question 34

The following are type of business organization EXCEPT

Accepted Answer

B. Entrepreneurship

Answer

A. co-operative society

Answer

C. partnership

Answer

D. public corporation

Answer

E. Sole proprietorship

Question 35

Remuneration of labour based on number of hours worked is known as

Accepted Answer

C. time-rates

Answer

A. fees

Answer

B. commission

Answer

D. salary

Answer

E. wages

Question 36

An economic system in which individual control the productive resources is known as

Accepted Answer

A. capitalism

Answer

B. communism

Answer

C. freedomism

Answer

D. socialism

Answer

E. welfarism

Question 37

The bank established to finances project aimed at promoting economic and social development within the African continent is

Accepted Answer

B. African development bank

Answer

A. African bank for commerce and industry

Answer

C. economic bank for African

Answer

D. recovery fund bank for Africa

Answer

E. Africa currency board bank

Question 38

When an economy is having a balance of payment surplus the best alternative opened to it is to

Accepted Answer

C. increase its foreign reserve

Answer

A. borrow from abroad

Answer

B. devalue its currency

Answer

D. promote imports into the country

Answer

E. sell out its foreign assets

Question 39

Which of the following factors will NOT account for an outward shift of production possibility curve?

Accepted Answer

A. budgeting and planning based on expectations

Answer

B. expansion in employment

Answer

C. discovering and exploration of new resources

Answer

D. introduction of improved production techniques

Answer

E. skill improvement through education and training

Question 40

Government expenditure on universal basic education and subsidy on agriculture are aimed at

Accepted Answer

D. redistribution of income and wealth

Answer

A. encouraging growth of the economy

Answer

B. projecting images of government

Answer

C. re-allocation of resources

Answer

E. stabilization of the economy

Question 41

Which of the following measure will NOT serves as a control during inflation period?

Accepted Answer

C. increase in government capital expenditure

Answer

A. increase in personal income tax

Answer

B. increase in bank rate and interest

Answer

D. reduction in money supply

Answer

E. reduction in government recurrent expenditure

Question 42

Which of the folowing NOT among the objectives of OPEC?

Accepted Answer

D. to estabilished petroleum refineries in all member state

Answer

A. to stabilize the revenue from oil to producing countries

Answer

B. to stabilize the price of iol in the world market

Answer

C. to make sure that oil flows to all the consuming countries

Answer

E. to co-ordinate and harmonize the oil policies of member countries

Question 43

What is the median term in the distribution below ;14, 13 29 ,15 ,13,17 ,12,

Accepted Answer

C. 14

Answer

A. 12

Answer

B. 13

Answer

D. 15

Answer

E. 29

Question 44

A producer who can only influence the price of his product but canNOT determine the quantity to be sold is referred to as

Accepted Answer

B. monopolist

Answer

A. duopoly

Answer

C. monopsonist

Answer

D. oligopoly

Answer

E. perfect competitor

2002 NECO Economics Past Questions

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