2004 NECO Economics Past Questions & Answers

Question 1

When Elasticity of Demand is greater than one, the demand is

Accepted Answer

E. elastic

Answer

A. perfectly elastic

Answer

B. unitary elastic

Answer

C. zero elastic

Answer

D. inelastic

Question 2

The amount of money required for the day-to-day running of a business is known as

Accepted Answer

E. working capital

Answer

A. economics capital

Answer

B. fixed capital

Answer

C. paid- up capital

Answer

D. reserve capital

Question 3

Which of the following factors will NOT affect supply of maize in Nigeria?

Accepted Answer

D. Quantity of wheat produced

Answer

A. Extension services to farmers

Answer

B. Improve technology

Answer

C. Price of maize

Answer

E. Weather and climatic condition

Question 4

The main differences between money market and capital market is that money markets

Accepted Answer

E. provide short term loans, while capital markets provide long-term loans

Answer

A. acts as advisers to investor while capital markets teleguides

Answer

B. are owned by individuals, while capital markets are owned by government

Answer

C. accepts collateral, while capital markets does not accept such

Answer

D. accepts funds while capital markets disburse fun to investors

Question 5

Demand for labour depends on the following factors EXCEPT

Accepted Answer

E. the period of training

Answer

A. number of industries/enterprises

Answer

B. nature of industries/business enterprises

Answer

C. price of labour

Answer

D. demand for labour output and prices

Question 6

The main industrial cities in Nigeria are

Accepted Answer

A. Ikeja, Kano, Onitsha and Port-Harcourt

Answer

B. Kaduna, Dutse, Ogbomoso a Calabar

Answer

C. Kano, Ilesa, Vadeikya and Afikpo

Answer

D. Maiduguri, Ikote Ekiti, Moniya and Akungba

Answer

E. Mokwa, Ijebu-ode, Warri and Gummel

Question 7

An inflation which occurs as a result of increase in production cost is known as

Accepted Answer

A. cost-push inflation

Answer

B. creeping inflation

Answer

C. demand-pull inflation

Answer

D. hyper-inflation

Answer

E. runaway inflation

Question 8

Which of the following is NOT a problem of population census in Nigeria?

Accepted Answer

B. High birth rate

Answer

A. inadequate transportation

Answer

C. High cost

Answer

D. Mass illiteracy

Answer

E. Political interest

Question 9

When total utility is at maximum, then marginal utility is

Accepted Answer

E. zero

Answer

A. decreasing

Answer

B. increasing

Answer

C. maximum

Answer

D. negative

Question 10

In a socialist economic system, decisions relating to the fundamental economic problems are taken by

Accepted Answer

B. government

Answer

A. academicians

Answer

C. individuals

Answer

D. judiciary

Answer

E. manufacturers

Question 11

To an individual, the term cost will include expenditure on the following EXCEPT

Accepted Answer

E. settling national debts

Answer

A. clothing

Answer

B. Entertainment

Answer

C. housing

Answer

D. payment of school fees

Question 12

Which of the following will NOT be a barrier to international trade?

Accepted Answer

B. Easy conversion of currencies

Answer

A. Communication hindrances

Answer

C. Geographical locations

Answer

D. Ideological differences

Answer

E. Imposition of duties and quotas

Question 13

In international trade, when payments of a country are higher than the receipts, then the balance of payment is

Accepted Answer

D. unfavourable

Answer

A. favourable

Answer

B. in equilibrium

Answer

C. perfect

Answer

E. uniform

Question 14

The assumptions of the principles of comparative cost advantage is based on I. Absence of Trade Restrictions II. No transport costs III. Constant technology

Accepted Answer

C. I, II & III only

Answer

A. II & III only

Answer

B. I & II only

Answer

D. II only

Answer

E. III only

Question 15

A development planning which takes a long range view of the economy and covers a period of 10-20 years is regarded as

Accepted Answer

C. perspective planning

Answer

A. comprehensive planning

Answer

B. indicative planning

Answer

D. regional planning

Answer

E. sectors planning

Question 16

Which of the following is true about average cost?

Accepted Answer

D. Total cost/quantity

Answer

A. Fixed cost/quantity

Answer

B. Marginal + Fixed cost

Answer

C. Quantity × Fixed cost

Answer

E. Total cost - fixed cost Quantity

Question 17

A firm with a total of 54 employees produced 108 tonnes of toilet tissues in 3months. What is the average production per employee?

Accepted Answer

C. 2 tonnes

Answer

A. 0.02 tonnes

Answer

B. 0.2 tonnes

Answer

D. 20 tonnes

Answer

E. 200 tonnes

Question 18

Excise duties are taxes levied on

Accepted Answer

D. locally manufactured goods

Answer

A. goods coming into the country

Answer

B. goods going out of the country

Answer

C. industrial incomes

Answer

E. selected consumer durable

Question 19

The excess profit made by a firm in a competitive market situation in the short-term is known as

Accepted Answer

E. super normal profit

Answer

A. break even

Answer

B. marginal profit

Answer

C. net profit

Answer

D. normal profit

Question 20

The decision of whether to use labour or capital intensive techniques in production process is a problem of

Accepted Answer

B. how to produce

Answer

A. for whom to produce

Answer

C. resource allocation

Answer

D. what to produce

Answer

E. when to produce

Question 21

Points outside the production possibility curves shows

Accepted Answer

D. unattainable production level

Answer

A. unequal allocation of resources among factors

Answer

B. capital production level

Answer

C. under utilization of resources

Answer

E. effective consummation of resources

Question 22

The introduction of money into the economy has helped to resolve the following problems EXCEPT

Accepted Answer

B. availability of goods

Answer

A. accessibility of needs

Answer

C. coincidence of wants

Answer

D. making deferred payments

Answer

E. measure and store of value

Question 23

A business organization set up for the mutual benefits of member with similar interest is known as

Accepted Answer

A. cooperative society

Answer

B. partnership

Answer

C. private limited company

Answer

D. public corporation

Answer

E. public limited company

Question 24

The most generally accepted definition of Economics was given by

Accepted Answer

C. Lord Robinson

Answer

A. Adam Smith

Answer

B. David Ricardo

Answer

D. Thomas Mathus

Answer

E. Sam Aluko

Question 25

The unit of satisfaction dived from the consumption of an additional unit of a commodity is known as

Accepted Answer

D. marginal utility

Answer

A. average utility

Answer

B. marginal cost

Answer

C. marginal product

Answer

E. total utility

Question 26

When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is

Accepted Answer

B. complementary demand

Answer

A. competitive demand

Answer

C. composite demand

Answer

D. independent demand

Question 27

In Economics, want means…………aspiration

Accepted Answer

A. endless

Answer

B. qualitative

Answer

C. quantifiable

Answer

D. satisfied

Question 28

Which of the following is NOT a function of the wholesaler in the distributive channel?

Accepted Answer

B. Direct contact with end users

Answer

A. Bulk breaking

Answer

C. Feedback information to manufacturers

Answer

D. Public relations and advertising of products

Answer

E. Storage facilities for finished products

Question 29

The types of unemployment that evolved the use of machines to replaces human labour is known as

Accepted Answer

E. technological unemployment

Answer

A. cyclical unemployment

Answer

B. frictional unemployment

Answer

C. seasonal unemployment

Answer

D. structural unemployment

Question 30

The desire to hold cash balances in order to meet expenditures which arises due to unforeseen circumstances is

Accepted Answer

E. none of the above

Answer

A. motive

Answer

B. aim

Answer

C. determination

Answer

D. self discipline

Question 31

The following are the main problems of distribution of essential commodities in Nigeria EXCEPT

Accepted Answer

A. excessive demand

Answer

B. hoarding of goods

Answer

C. long chain of distribution

Answer

D. poor storage facilities

Answer

E. poor transportation network

Question 32

Which of the following is NOT a factor to be considered in siting an industry in a particular area?

Accepted Answer

B. availability of recreational facilities

Answer

A. access to raw material

Answer

C. market

Answer

D. sources of power

Answer

E. transport facilities

Question 33

Arrangement of wants in order of importance is brought about by

Accepted Answer

C. scarcity of resources

Answer

A. excess supply of goods

Answer

B. interest in doing so

Answer

D. opportunity cost

Answer

E. limited wants

Question 34

A negative effect of the discovery of petroleum on the Nigerian economy is

Accepted Answer

A. conversion of the economy into a mono product type

Answer

B. development of infrastructures

Answer

C. encouragement of international recognition

Answer

D. provision of job opportunities

Answer

E. rapid industrialization

Question 35

A one-man business is controlled by

Accepted Answer

E. the owner

Answer

A. an active partner

Answer

B. board of trustees

Answer

C. board of directors

Answer

D. dormant partner

Question 36

The indices used to measure the cost of living is

Accepted Answer

D. price index

Answer

A. consumption expenditure

Answer

B. national income

Answer

C. per capital income

Answer

E. savings and investment

Question 37

The basic economics problem of what to produce arises as a result of

Accepted Answer

A. competing demands for scarce resources

Answer

B. excessive supply

Answer

C. the availability of too many experts

Answer

D. the failure of the price system

Answer

E. the reduction of poverty

Question 38

All the following are the objectives of economic planning EXCEPT to

Accepted Answer

C. evolve a sequential political transition and enthronement of popular government

Answer

A. reduce the rate of inflation and achieve stable value for the naira

Answer

B. encourage inflow of public and private capital

Answer

D. reduce economic dependence on foreign nations

Answer

E. achieve full employment

Question 39

Individuals who buy new shares in anticipation of reselling at higher prices in the stock exchange market are called

Accepted Answer

E. stags

Answer

A. bears

Answer

B. brokers

Answer

C. bulls

Answer

D. jobbers

2004 NECO Economics Past Questions

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