2003 NECO Economics Past Questions & Answers

Question 1

A problem of price control is

Accepted Answer

A. development of black-market

Answer

B. increased earning and higher profit

Answer

C. increase in employment

Answer

D. increase investment

Answer

E. redistribution of income

Question 2

An economy is described as spend-rift if it

Accepted Answer

A. does not concern itself with savings and investment

Answer

B. has a great ability to generate foreign exchange from investment

Answer

C. has greater opportunity to receive large income from investment

Answer

D. invests in income generating industries

Answer

E. has trade connection with other countries

Question 3

The professional that view cost in term of alternatives sacrificed is the

Accepted Answer

C. economist

Answer

A. accountant

Answer

B. cashier

Answer

D. manager

Answer

E. tax collector

Question 4

Central bank of Nigerian started operation

Accepted Answer

B. 1959

Answer

A. 1958

Answer

C. 1960

Answer

D. 1963

Answer

E. 1973

Question 5

Which of the following is NOT a reason for the absence of an industry in the rural areas?

Accepted Answer

E. presence of external economies

Answer

A. Absence of financial institution

Answer

B. restricted market

Answer

C. inadequate power and water supply

Answer

D. inadequate transportation

Question 6

The aim of indigenization policy was to

Accepted Answer

D. increase the participation of Nigerians in commerce and industry

Answer

A. build more industries in the economy

Answer

B. increase the drain in foreign exchange

Answer

C. increase foreign domination of the economy

Answer

E. send all the foreigners away from Nigeria

Question 7

Which of the following is NOT an internal dis-economy of scales?

Accepted Answer

A. Easy management and less administrative cost

Answer

B. large firm suffers from bureaucracy or red tapism

Answer

C. less personal relationship between management and employees

Answer

D. Motivation may be lacking in the large firm

Answer

E. slow response to changes

Question 8

Using functional relationship in economics QX = f (px, po, y, T); po stand for

Accepted Answer

C. price of other commodities

Answer

A. level of income of the consumer

Answer

B. price of x

Answer

D. production function of x

Answer

E. price index

Question 9

ECOWAS Visa lasts for

Accepted Answer

D. 90 days

Answer

A. 14 days

Answer

B. 30 days

Answer

C. 60 days

Answer

E. 100 days

Question 10

In calculating mean one should

Accepted Answer

C. divide the sum of the figure by the number of the figure

Answer

A. add the highest and the lowest number

Answer

B. divide the highest and the lowest number

Answer

D. find the most common number

Answer

E. pick any number that has no partner

Question 11

To finance a deficit balance of payment, a country may decide to

Accepted Answer

A. borrow from abroad

Answer

B. increase its foreign investment

Answer

C. privatizes its economy

Answer

D. reduce domestic consumption

Answer

E. secure more factor of production

Question 12

The theory of income determination is traced to

Accepted Answer

B. Lord John Mynard Keynes

Answer

A. Rev Thomas Mathus

Answer

C. Prof Adam Smith

Answer

D. R G Lipsey

Answer

E. Prof Umar SI

Question 13

In a free market economy, wages are determined by

Accepted Answer

D. interaction of demand and supply forces

Answer

A. the employees

Answer

B. the employers

Answer

C. trade unions

Answer

E. the government

Question 14

The most generally accepted definition of economics is

Accepted Answer

C. the science which studies human behavior as a relationship between ends and scarce means which have alternative use

Answer

A. an inquiry into the nature and causes of the wealth of nations

Answer

B. the science of material welfare

Answer

D. the science that treats phenomena from the stand point of price

Answer

E. the practical science of production and distribution of wealth

Question 15

For a monopolist, the demand curve is

Accepted Answer

A. inelastic

Answer

B. perfectly elastic

Answer

C. perfectly inelastic

Answer

D. elastic

Answer

E. unitary elastic

Question 16

Price legislation means

Accepted Answer

D. regulating the price system by the government

Answer

A. directing market specialist to fix prices

Answer

B. interplay of either demand or supply

Answer

C. producers are prices givers

Answer

E. the use of market forces

Question 17

A shift of the demand curve leftward from its original position indicate

Accepted Answer

D. a fall in demand

Answer

A. an increase in quantity demanded

Answer

B. a decrease in quantity demanded

Answer

C. an expansion of demand

Answer

E. price effect on demand

Question 18

Equilibrium prices is

Accepted Answer

A. a price which equates demand with supply

Answer

B. a price where there is excess demand

Answer

C. where consumers gain much

Answer

D. where producers gain much

Answer

E. where supply is more than demand

Question 19

Which of the following is a major export crop in Nigeria?

Accepted Answer

A. cocoa

Answer

B. coffee

Answer

C. copper

Answer

D. kola nut

Answer

E. soy beans

Question 20

Which of these is NOT a basic economic problem of society?

Accepted Answer

D. scale of production

Answer

A. efficiency of resource use

Answer

B. for whom to produces

Answer

C. how to produce

Answer

E. what to produce

Question 21

Averages cost (AC) equal to

Accepted Answer

E. TCQ

Answer

A. ACTC

Answer

B. TCAC

Answer

C. TCAVC

Answer

D. TCMC

Question 22

In economics, electricity, water supply, communication networks, road, etc are known as

Accepted Answer

D. infrastructural facilities

Answer

A. capital structure

Answer

B. development induces

Answer

C. development projects

Answer

E. project growth

Question 23

Which of the following is NOT a cause of inflation?

Accepted Answer

C. increase in domestics productivity

Answer

A. excessive bank lending

Answer

B. excessive deficit financing

Answer

D. increase in wages and salaries of workers

Answer

E. increase in government expenditure

Question 24

The per capita income is calculated as

Accepted Answer

E. GNP- population

Answer

A. GNP- working age population

Answer

B. GNP- real national income

Answer

C. GNP- total capital expenditure

Answer

D. GNP- dependency ratio

Question 25

Which of the following is a characteristic of private enterprises?

Accepted Answer

E. The main aim of setting up the business is to maximize profit

Answer

A. business risks are borne by the buyers

Answer

B. capital is provided by the public

Answer

C. control and management of the business is in the hands of customer

Answer

D. the business is owned and run by government

Question 26

Of what importance is a wholesaler in the chain of distribution?

Accepted Answer

B. bulk breaking

Answer

A. creation of artificial scarcity

Answer

C. formation of trade unionism

Answer

D. hoarding of goods

Answer

E. making prompt payment to producers

Question 27

The demand for a commodity for the sake of what it will yield is

Accepted Answer

B. composite demand

Answer

A. competitive demand

Answer

C. effective demand

Answer

D. joint demand

Question 28

Which of the following is true of a perfect market situation?

Accepted Answer

D. price = AR = MR = DD

Answer

A. price = AR=MC=AC

Answer

B. price = DD = MC = AC

Answer

C. price = AC = MC = AR

Answer

E. price = MR but MR < AR

Question 29

According to the theory of comparative advantages, countries are to specialize based on their

Accepted Answer

C. comparative cost advantages

Answer

A. absolute cost advantages

Answer

B. absolute cost disadvantages

Answer

D. comparative cost disadvantages

Answer

E. the availability of labour

Question 30

Which of the following is a motive for holding money?

Accepted Answer

B. daily purchases

Answer

A. celebration

Answer

C. election campaign

Answer

D. payment of taxes

Question 31

Which of the following is NOT a sources of national income statistics?

Accepted Answer

E. level of infrastructural development

Answer

A. Foreign trade figure

Answer

B. pay-rolls of various establishment

Answer

C. income tax return

Answer

D. Economic surveys

Question 32

In the demographic transition theory, stage II represents a stage where

Accepted Answer

C. there is population growth due to high birth rates and low death rates at that stages

Answer

A. declining birth rates with low death rates lead to little or no population growth

Answer

B. high birth rate with low death rates lead to no population growth

Answer

D. there is a slow rate of population growth as a result of high birth rate accompanied by high but slightly fluctuating death rate

Answer

E. there is a very high growth as population as a result of high birth rates accompanied by high but slightly fluctuating death rates

Question 33

One of the following is NOT a reason for increase in public expenditure

Accepted Answer

E. returns on viable public corporation

Answer

A. decrease arising from public debt and its servicing

Answer

B. increase in capital expenditure to provide social services

Answer

C. increase financial commitment for defence and security

Answer

D. increase in recurrent expenditure with regard to wages and salary paid to public servant

Question 34

Which of the following is NOT a factor determining supply?

Accepted Answer

C. income of the producers

Answer

A. cost of production

Answer

B. climatic condition or weather

Answer

D. number of producers

Answer

E. technological development

Question 35

The best way of presenting data in tabular form is in

Accepted Answer

E. rows and columns

Answer

A. bars and columns

Answer

B. charts and lines

Answer

C. maps and rows

Answer

D. pictographs and histogram

Question 36

The first commercial oil well in Nigeria was discovered in

Accepted Answer

C. 1956

Answer

A. 1938

Answer

B. 1951

Answer

D. 1958

Answer

E. 1961

Question 37

Efficiency of labour implies

Accepted Answer

D. increased productivity worker accompanied by improvement in the quality of output

Answer

A. education and training

Answer

B. good working condition

Answer

C. healthier workforce

Answer

E. the amount of incentives or remuneration given to workers

Question 38

The central point of the Malthusian theory is that

Accepted Answer

D. population increase in geometric progression while food arithmetic progression

Answer

A. everybody should become a farmer

Answer

B. government should provide enough accommodation and food

Answer

C. increasing population will get enough food

Answer

E. wages has nothing to do with cost of living

Question 39

Economic growth is the

Accepted Answer

D. rate of increase in a country’s full employment and real output

Answer

A. growth in a nation’s life expectancy

Answer

B. increase in a nation’s population

Answer

C. rate of increase in aggregate demand in a country

Answer

E. rate of increase

Question 40

Minimum price control is aimed at

Accepted Answer

D. protecting the consumer

Answer

A. increasing the size of the market

Answer

B. minimizing the profit level

Answer

C. punishing the consumers

Answer

E. reducing the size of the market

Question 41

Which of the following is NOT a component of agriculture?

Accepted Answer

B. drilling

Answer

A. crop farming

Answer

C. fishing

Answer

D. forestry

Answer

E. livestock farming

Question 42

The law of variable proportion state that if the quantities of variable factor of production are used with fixed factor, after a certain point,

Accepted Answer

A. each successive unit of the variable factor brings about a decreasing marginal product

Answer

B. each successive unit of the variable factor bring about equal increase in marginal product

Answer

C. each successive unit of the variable factor bring about an increasing marginal product

Answer

D. each successive unit of the variable factor bring about four time increase in marginal product

Answer

E. each successive unit of the variable factor bring about more than equal increase in marginal product

Question 43

Which of the following is NOT a function of taxation?

Accepted Answer

A. make few people rich in the country

Answer

B. raise revenue for the government

Answer

C. redistribution of income

Answer

D. reduces production and consumption of harmful goods

Answer

E. used as anti-inflationary device

Question 44

Data presented in a circular chart is known as

Accepted Answer

E. pie chart

Answer

A. circular chart

Answer

B. component chart

Answer

C. histogram

Answer

D. pictograph

Question 45

A tax system which takes lesser percentage of a tax payers income as his income increase is known as

Accepted Answer

E. regressive tax

Answer

A. direct tax

Answer

B. indirect tax

Answer

C. progressive tax

Answer

D. proportional tax

Question 46

Abdul is faced with a choice between buying a new NOTE book and a pen with N10. Since the N10 can NOT give him both items he decide to buy NOTE book. The money cost to him is

Accepted Answer

A. N10

Answer

B. N20

Answer

C. N30

Answer

D. N40

Answer

E. N50

Question 47

An economic system where both the public and individuals own and control means of production is known as ……… system

Accepted Answer

C. mixed

Answer

A. capitalism

Answer

B. communist

Answer

D. socialist

Answer

E. welfarist

Question 48

In the equation MV = PT; V stand for

Accepted Answer

A. velocity of circulation of money

Answer

B. velocity of price change

Answer

C. volume of goods produced

Answer

D. volume of money

Answer

E. volume of transaction

Question 49

Total revenue can be obtained by multiplying

Accepted Answer

A. price by quantity sold

Answer

B. averages revenue by the demand

Answer

C. marginal revenue by marginal cost

Answer

D. average revenue plus marginal revenue

Answer

E. average cost by variable cost

Question 50

What is meant by utility?

Accepted Answer

C. amount of satisfaction derive from the consumption of a commodity at a particular time

Answer

A. amount of money derived by a manufacture

Answer

B. A number of things a consumer will enjoy at a time

Answer

D. amount of satisfaction giving to a producer

Answer

E. total profit producers will get at a particular time

2003 NECO Economics Past Questions

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