2007 NECO Economics Past Questions & Answers

Question 1

A tax system in which the rich pay a higher percentage of income as tax than the poor is known as

Accepted Answer

B. progressive taxation

Answer

A. capital gains tax

Answer

C. proportional taxation

Answer

D. regressive taxation

Answer

E. sales tax

Question 2

The following measures used to check deflation EXCEPT

Accepted Answer

D. raising the bank rate

Answer

A. deficit financing

Answer

B. improving distribution system

Answer

C. increasing wages and salaries

Answer

E. reducing taxation

Question 3

The creation of physical and concrete goods that can be seen and handled Is

Accepted Answer

D. production

Answer

A. diminishing returns

Answer

B. division of labour

Answer

C. Industrialization

Answer

E. specialization

Question 4

The theory of absolute advantage was propounded by

Accepted Answer

A. Adam Smith

Answer

B. David Ricardo

Answer

C. Irving Fisher

Answer

D. JB Kynes

Answer

E. Thomas Malthus

Question 5

The difference between Gross National Income and Gross Domestic Product is known as

Accepted Answer

D. net income from abroad

Answer

A. capital consumption

Answer

B. debt repayments

Answer

C. Investment abroad

Answer

E. net saving

Question 6

The solution to problem of how to produce in a capitalist economy is solved by

Accepted Answer

E. using the method of production with the least cost

Answer

A. combining aid labour means of production

Answer

B. the producers involves

Answer

C. using capital Intensive method of production

Answer

D. using labour intensive method of production

Question 7

Which of the following goods are NOT examples of joint supply?

Accepted Answer

D. Tea and coffee

Answer

A. Beef and hides

Answer

B. fuel and kerosene

Answer

C. Palm oil and kernel

Answer

E. Wool and Mutton

Question 8

Which of the following Is NOT a function of Merchant Bank

Accepted Answer

E. They implement government monetary policies

Answer

A. Helps public companies to issue new shares

Answer

B. Provision of medium and long-term loans

Answer

C. They accept bills of exchange

Answer

D. They guarantee the buying of shares

Question 9

Which of these is NOT a bottle neck In the distribution of goods In Nigeria?

Accepted Answer

A. Adequate transportation network

Answer

B. Inadequate credit facilities

Answer

C. Inadequate storage facilities

Answer

D. poor processing and packaging

Answer

E. Unnecessary hoarding

Question 10

Which of the following is NOT a feature of land?

Accepted Answer

D. Returns on land is wages

Answer

A. Free gift of nature

Answer

B. Fixed in supply

Answer

C. Geographically immobile

Answer

E. Subject to law of diminishing returns

Question 11

The following are bye-products of crude oil EXCEPT

Accepted Answer

D. perfume

Answer

A. bitumen

Answer

B. kerosene

Answer

C. paraffin wax

Answer

E. petrol

Question 12

Agricultural production in Nigeria could be improved through

Accepted Answer

A. control of plant diseases

Answer

B. Land Fragmentation

Answer

C. Payment of excise duty

Answer

D. the introduction of low yielding crops

Answer

E. the use of traditional implements

Question 13

The first oil refinery in Nigeria was established at

Accepted Answer

A. Alesa Eleme

Answer

B. Araromi

Answer

C. Kaduna

Answer

D. Oloibiri

Answer

E. Warri

Question 14

A change in National Income brought about by a given change in investment Is

Accepted Answer

E. The multiplier

Answer

A. APC

Answer

B. APS

Answer

C. MPC

Answer

D. MPS

Question 15

The following are the objectives of economic planning EXCEPT

Accepted Answer

E. rapid population growth

Answer

A. achieving balanced growth

Answer

B. diversification of the economy

Answer

C. creation of more employment opportunities

Answer

D. equitable allocation of resources

Question 16

Goods that are useful, scarce and can command price are called …………. goods.

Accepted Answer

C. economic

Answer

A. capital

Answer

B. consumer

Answer

D. free

Answer

E. scarce

Question 17

The following methods are used in calculation of National Income EXCEPT

Accepted Answer

A. depreciation

Answer

B. Expenditure

Answer

C. Income

Answer

D. Output

Answer

E. value added

Question 18

Which of the following is a condition necessary

Accepted Answer

B. Free entry and exist

Answer

A. Few sellers and buyers

Answer

C. Homogeneous goods

Answer

D. Lack of preferential treatment

Answer

E. Many callers and buyers

Question 19

Which of the following is NOT a contribution of agriculture to industrial development?

Accepted Answer

E. supply of machinery to the industrial sector

Answer

A. provision of food for the industrial sector

Answer

B. Provision of funds for industrial development

Answer

C. Provision of raw materials

Answer

D. Supply of labour to the industrial sector

Question 20

Which of the following is a disadvantage of sole proprietorship?

Accepted Answer

A. Does not enjoy limited liability

Answer

B. Decisions are easily made and implemented

Answer

C. Easy to set up

Answer

D. Enjoys secrecy

Answer

E. Maintains dose relationship with workers and customers

Question 21

The following are advantages of standard deviation EXCEPT that it

Accepted Answer

D. is not a sound mathematical index

Answer

A. has greater practical utility In sampling

Answer

B. is a good measure of dispersion since all the values are used in its calculation

Answer

C. is important and useful in the analysis of T- Test

Answer

E. is the most popular measure of dispersion in distribution

Question 22

The Industrial strategy of producing locally those goods that could have been imported is known as

Accepted Answer

C. import substitution

Answer

A. balance growth

Answer

B. export promotion

Answer

D. Industrialization

Answer

E. urbanization

Question 23

The function muv/muz = py/pz represents

Accepted Answer

E. utility maximization

Answer

A. consumer’s average utility level

Answer

B. diminishing marginal utility

Answer

C. increasing marginal utility

Answer

D. marginal theory of price

Question 24

Population density refers to

Accepted Answer

B. the total population divided by the total area of land

Answer

A. total population

Answer

C. the total area of land divided by the total population

Answer

D. the population ratio of male and female

Answer

E. optimum Population level

Question 25

At the point where total utility begins to decline MU is

Accepted Answer

D. negative

Answer

A. constant

Answer

B. decreasing

Answer

C. increasing

Answer

E. zero

Question 26

Unemployment resulting from physical or mental deficiency is known as……………unemployment.

Accepted Answer

D. residual

Answer

A. cyclical

Answer

B. disguised

Answer

C. Frictional

Answer

E. Voluntary

Question 27

In a solo proprietorship, decisions are made by the

Accepted Answer

D. owner

Answer

A. board of directors

Answer

B. government

Answer

C. management

Answer

E. shareholders

Question 28

Plantation farming can best be defined as cultivation of

Accepted Answer

D. large scale farms of cash crops

Answer

A. crops using hoes and cutlasses for farming

Answer

B. food crops for personal consumption

Answer

C. food for use by the family

Answer

E. livestock for commercial purposes

Question 29

Standard deviation can be determined by the square root of the

Accepted Answer

D. variance

Answer

A. mean

Answer

B. mean deviation

Answer

C. mode

Answer

E. variance divided by the mean

Question 30

A deliberate government policy to exclude foreign participation in certain economic activity is known as

Accepted Answer

B. indigenization

Answer

A. commercialization

Answer

C. liberalization

Answer

D. localization

Answer

E. privatization

Question 31

If the price Index of export is 140% and import is 200%, what is

Accepted Answer

B. 70

Answer

A. 60

Answer

C. 100

Answer

D. 140

Answer

E. 280

Question 32

which of the following measures can be used to control inflation?

Accepted Answer

C. deficit budget

Answer

A. decrease in bank rate

Answer

B. Decrease in taxation

Answer

D. Export drive

Answer

E. Increase in government expenditure

Question 33

Find the arithmetic mean of the following set of scores 12, 4, 2, 8, and 14

Accepted Answer

A. 8

Answer

B. 10

Answer

C. 12

Answer

D. 14

Answer

E. 30

Question 34

The following are types of monopolies EXCEPT

Accepted Answer

D. thrifts

Answer

A. cartels

Answer

B. holding companies

Answer

C. syndicates

Answer

E. trusts

Question 35

If total Income is N15m and total consumption Is N3m. then the average propensity to consume is

Accepted Answer

A. 0.2

Answer

B. 0.6

Answer

C. 0.7

Answer

D. 5

Answer

E. 10

Question 36

The difference between bar charts and histograms is that the former

Accepted Answer

E. has bars separate from each other while the latter has bars adjoined to each other

Answer

A. are difference between bars adjoined to each other while the latter are separate bars divided Into sections

Answer

B. are line graphs while the latter are rectangular bars

Answer

C. are separate bars divided Into sections while the latter are line graphs

Answer

D. has bars adjoined to each other while the latter has separate bars

Question 37

Which of the following is an advantage of free enterprise economy?

Accepted Answer

E. No need of employing a host of officials to allocate resources

Answer

A. Allocates resources better

Answer

B. Avoids extreme Inequality of income

Answer

C. Full employment

Answer

D. It is very competent In providing vital social services

Question 38

A comprehensive statement of Income and expenditure on international accounts for one financial year is called

Accepted Answer

A. balance of payments

Answer

B. balance of trade

Answer

C. budget

Answer

D. Index of trade

Answer

E. terms of trade

Question 39

Economics is regarded as a social science because It

Accepted Answer

D. studies human behavior

Answer

A. helps people to be acceptable In the society

Answer

B. Is associated with social dubs

Answer

C. is used by sociologist

Answer

E. uses controlled experiment

Question 40

A tax system in which the income earner pays a fixed percentage of his income annually is known as …………. tax.

Accepted Answer

D. proportional

Answer

A. direct

Answer

B. indirect

Answer

C. progressive

Answer

E. regressive

Question 41

The equation MV PT is known as

Accepted Answer

C. equation of exchange

Answer

A. demand and supply equation

Answer

B. equilibrium equation

Answer

D. money supply equation

Answer

E. price index numbers

Question 42

If the Income flow of a country exceeds the expenditure flow in international transactions, the balance of payment is

Accepted Answer

D. surplus

Answer

A. balanced

Answer

B. deficit

Answer

C. restricted

Question 43

The African Development Bank was set up in 1964 and has its headquarters in

Accepted Answer

B. Ivory Coast

Answer

A. Burkina Faso

Answer

C. Liberia

Answer

D. Niger Republic

Answer

E. Senegal

Question 44

Which of the following is NOT an advantage of localization of industry?

Accepted Answer

E. traffic De-congestion

Answer

A. Availability of social amenities

Answer

B. Development of subsidiary industries

Answer

C. Highly organized markets

Answer

D. supply of skilled labour

Question 45

The following countries are members of ECOWAS EXCEPT

Accepted Answer

A. Angola

Answer

B. Ghana

Answer

C. Ivory coast

Answer

D. Liberia

Answer

E. Niger Republic

Question 46

Branding and packaging of goods Is the function of

Accepted Answer

C. manufactures

Answer

A. brokers

Answer

B. consumers

Answer

D. retailers

Answer

E. wholesalers

2007 NECO Economics Past Questions

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