2005 NECO Economics Past Questions & Answers

Question 1

The following are rewards for factors of production EXCEPT

Accepted Answer

D. subsidy

Answer

A. interest

Answer

B. profit

Answer

C. rent

Answer

E. wages

Question 2

Which of the following is NOT a function of marketing boards in Nigeria?

Accepted Answer

C. Importation of farm produce

Answer

A. Fixing of prices for farm produce

Answer

B. Grading of farm produce

Answer

D. Marketing of farm produce

Answer

E. Price stabilization

Question 3

An industry engaged in the extraction of raw materials and its conversion into semi-finished goods is called industry.

Accepted Answer

E. processing

Answer

A. construction

Answer

B. conversion

Answer

C. manufacturing

Answer

D. mining

Question 4

The following are problems of development planning in Nigeria EXCEPT

Accepted Answer

E. under-population

Answer

A. death of skilled manpower

Answer

B. inadequate capital

Answer

C. inadequate statistical data

Answer

D. poor implementation of economic planning

Question 5

If two bags of rice were sold for N1,250 a mouth ago and two weeks later, the same amount was used to procure one bag. This simply means that the value of money is

Accepted Answer

B. decreasing

Answer

A. constant

Answer

C. fluctuating

Answer

D. increasing

Answer

E. proportional

Question 6

Which of the following is NOT a positive contribution a petroleum to Nigeria economy?

Accepted Answer

E. Turning the nation to mono-product economy

Answer

A. Development of bat infrastructures

Answer

B. Increase in National income

Answer

C. Major employer of labour

Answer

D. Major foreign exchange earned

Question 7

An industry operating in a perfect competitive market situation will maximum profit when

Accepted Answer

E. MC = MR

Answer

A. DD = SS

Answer

B. DD < SS

Answer

C. MC > AC

Answer

D. MC < AR

Question 8

Stock exchange market deals with

Accepted Answer

E. sales of second hand securities

Answer

A. exchange of commodities

Answer

B. exchange of stock fish for stock

Answer

C. exchange of treasury bills

Answer

D. sales of foreign exchange

Question 9

Production is said to be complete when goods and services gets to the

Accepted Answer

A. consumers

Answer

B. distributors

Answer

C. retailers

Answer

D. warehouses

Answer

E. wholesalers

Question 10

The problem of “how to produce” in any economy is solved by

Accepted Answer

A. adopting the least cost method of production

Answer

B. combining capital and labour intensive methods of production

Answer

C. employing the services of a manager

Answer

D. using capital intensive method of production

Answer

E. using labour intensive method of production

Question 11

Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds

Accepted Answer

A. as much to TR as to TC

Answer

B. less to TR as to TC

Answer

C. less to TC than to TR

Answer

D. more to TC than to TR

Answer

E. more to TR than to T

Question 12

The 2nd National Development plan in Nigeria was between

Accepted Answer

B. 1970 — 1974

Answer

A. 1962 — 1968

Answer

C. 1975 — 1980

Answer

D. 1980 — 1985

Answer

E. 1985 — 1990

Question 13

The variance of a given set of numbers is defined as the

Accepted Answer

B. square of the standard deviation

Answer

A. absolute value of the standard deviation

Answer

C. square root of the standard deviation

Answer

D. square of the mean deviation

Answer

E. square root of the mean deviation

Question 14

Which of the following is NOT included in-measuring the National income through the income approach?

Accepted Answer

A. Allowance given to an aged mother by a civil servant

Answer

B. Income earned by a bricklayer

Answer

C. Profit earned by Nigerian bottling company plc

Answer

D. profit earned by NITEL plc

Answer

E. Salary earned by a doctor

Question 15

A major characteristics of a firm operating at a long-run equilibrium position is that

Accepted Answer

A. all costs can be varied

Answer

B. average variable cost is fixed

Answer

C. fixed cost can not be changed

Answer

D. marginal cost is fixed

Answer

E. only variable cost changes

Question 16

Which of the following is NOT associated with minimum price legislation?

Accepted Answer

B. Excess demand

Answer

A. Black market

Answer

C. Excess supply

Answer

D. Unattainable equilibrium

Answer

E. Unemployment

Question 17

The system of farming which involves the use of a large hectare of land planted with economic crops is known as

Accepted Answer

D. plantation farming

Answer

A. cooperative farming

Answer

B. mechanized farming

Answer

C. peasant farming

Answer

E. tree planting

Question 18

Which of the following is NOT a major role of OPEC in production, and marketing of petroleum?

Accepted Answer

D. Refining of petroleum products in member countries

Answer

A. Coordinating and unifying petroleum policies of member countries

Answer

B. Ensuring efficient and regular supply of oil to the two market

Answer

C. Raising the revenue of member countries from oil through price increase

Answer

E. Stabilizing oil prices putting a production ceiling

Question 19

Which of the following is NOT an objective of Economic planning?

Accepted Answer

E. Widening the income gap

Answer

A. Achieving economic self reliance

Answer

B. Achieving economic growth

Answer

C. Creating employment

Answer

D. Equitable allocation of resources

Question 20

When the total product starts falling, then the marginal product is

Accepted Answer

D. negative

Answer

A. constant

Answer

B. increasing

Answer

C. maximum

Answer

E. zero

Question 21

The demand for factors of production is said to be

Accepted Answer

D. derived

Answer

A. competitive

Answer

B. complementary

Answer

C. composite

Answer

E. joint

Question 22

Which of the following is the correct order in the chain of distribution?

Accepted Answer

C. Producer → Wholesaler → Retailer → Consumer

Answer

A. Consumer —> Distributor → Retailer → Producer

Answer

B. Producer → Consumer → Retailer → Wholesaler

Answer

D. Retailer → Consumer → Producer → Wholesaler

Answer

E. Wholesaler → Retailer → Producer → Consume

Question 23

The following determine the level of consumption EXCEPT

Accepted Answer

E. the political climate

Answer

A. expectation of price changes

Answer

B. level of income

Answer

C. savings

Answer

D. the rate of taxes paid

Question 24

If the population of a school is 600 and 60% are In JSS, how many students are in SSS?

Accepted Answer

C. 240

Answer

A. 204

Answer

B. 224

Answer

D. 244

Answer

E. 248

Question 25

Which of the following is a disadvantage of localization of industries?

Accepted Answer

B. Creating structural unemployment

Answer

A. Aiding cooperation among firms

Answer

C. Encouraging subsidiary industries

Answer

D. Encouraging the growth of skilled labour

Answer

E. Reducing cost of production

Question 26

The following can be used to improve a country’s balance of payment EXCEPT

Accepted Answer

B. decreasing taxation on personal income

Answer

A. anti-dumping policies

Answer

C. granting subsidies to export producers

Answer

D. increasing import duties

Answer

E. removing export duties

Question 27

The following will occur when maximum price is fixed below the free market price EXCEPT that

Accepted Answer

C. excess supply will occur

Answer

A. black market will be encouraged

Answer

B. excess demand will occur

Answer

D. rationing of commodities will occur

Answer

E. scarcity of goods will occur

Question 28

Persistent fail In the general price level Is known as

Accepted Answer

A. deflation

Answer

B. devaluation

Answer

C. general price Increase

Answer

D. inflation

Answer

E. price index

Question 29

If the standard deviation of a set of numbers is 3.6, what is the variance?

Accepted Answer

D. 12.96

Answer

A. 12.49

Answer

B. 12.69

Answer

C. 12.9

Answer

E. 12.98

Question 30

ECOWAS secretariat is located in

Accepted Answer

A. Abuja, Nigeria

Answer

B. Accra, Ghana

Answer

C. Conakry, Guinea

Answer

D. Freetown, Sierra Leone

Answer

E. Monrovia, Liberia V

Question 31

Which of the following will NOT bring about an increase in Labour force?

Accepted Answer

C. Emigration

Answer

A. Better medical services

Answer

B. Decrease in death rate

Answer

D. Immigration

Answer

E. Increase in birth rate

Question 32

When an increase in the price of a commodity lead to a fall In the demand for aNOTher, the demand for the two commodities are said to be

Accepted Answer

E. joint

Answer

A. abnormal

Answer

B. competitive

Answer

C. composite

Answer

D. derived

Question 33

The use of tax and expenditure policy to regulate the economy is known as

Accepted Answer

B. fiscal policy

Answer

A. deregulation

Answer

C. monetary policy

Answer

D. physical measures

Answer

E. structural adjustment

Question 34

The trade-off between two commodities along the Production Possibility Curve (PPC) shows

Accepted Answer

A. opportunity cost principle

Answer

B. scarcity principle

Answer

C. transferable output

Answer

D. unattainable combination

Answer

E. under utilization of resources

Question 35

At the equilibrium price,

Accepted Answer

B. demand equates supply

Answer

A. demand is greater than supply

Answer

C. demand is less than supply

Answer

D. price is equal to demand only

Answer

E. price is equal to supply only

Question 36

The satisfaction derived from Die consumption of a commodity is referred o as

Accepted Answer

D. utility

Answer

A. consumption

Answer

B. demand

Answer

C. production

Answer

E. utilization

Question 37

Range is NOT the best method of measuring dispersion because it considers only the

Accepted Answer

E. two extreme number

Answer

A. first number

Answer

B. first two numbers

Answer

C. frequently occurred number

Answer

D. middle number

Question 38

An economy in which decision of what to produce is taken partly by private individuals and state is referred to as Economy.

Accepted Answer

C. mixed

Answer

A. capitalist

Answer

B. communist

Answer

D. socialist

Answer

E. welfarist

Question 39

The recent revolution of Cassava from ordinary food crop to export crop will lead to

Accepted Answer

E. increase in the prices of cassava products

Answer

A. decrease in price of cassava flour

Answer

B. decrease In production of cassava

Answer

C. decrease In production of local starch

Answer

D. increase In production of other crops

Question 40

Which of the following is NOT a function of the IMF?

Accepted Answer

A. assisting member countries in printing and issuing their currency

Answer

B. Exchange rate stabilization

Answer

C. Promoting international monetary cooperation

Answer

D. Providing financial aid to members experiencing balance of payment difficulties

Answer

E. Serving as a clearing house f member countries

Question 41

Economic problem arises as a result of

Accepted Answer

D. scarcity

Answer

A. choice

Answer

B. money cost

Answer

C. opportunity cost

Answer

E. scale of preference

Question 42

A business formation with a minimum of two and maximum of twenty persons is called

Accepted Answer

D. partnership

Answer

A. cooperative society

Answer

B. joint stock company

Answer

C. one man business

Answer

E. public corporation

Question 43

The following are the objectives of agricultural policies in Nigeria EXCEPT

Accepted Answer

C. increasing prices of agricultural Inputs

Answer

A. provision of food

Answer

B. provision of agricultural raw materials to industrial sectors

Answer

D. creation of rural employment

Question 44

The formular (N + 1)/2 is used to determine the

Accepted Answer

B. median

Answer

A. mean

Answer

C. mode

Answer

D. standard deviation

Answer

E. mean deviation

Question 45

In the equation Q = a - bp + e; Q and P are .... Variables respectively.

Accepted Answer

B. dependent and independent

Answer

A. constant and dependent

Answer

C. error term and independent

Answer

D. independent and constant

Answer

E. independent and dependent

2005 NECO Economics Past Questions

Questions

Frequently asked questions

How do I prepare for NECO Economics?

Where can I find NECO Economics past questions?

How close is the DeeepSolve CBT simulator to the real NECO?

Are the AI explanations accurate?