2009 NECO Economics Past Questions & Answers

Question 1

The mean of the following scores 30, 32, 34, 36, 38, 40 and 42 What is the mean deviation?

Accepted Answer

C. 3.42

Answer

A. 4.21

Answer

B. 3.24

Answer

D. 4.54

Question 2

One of the positive contributions of the petroleum industry to Nigeria’s economic development is that it

Accepted Answer

D. is a major foreign exchange earner

Answer

A. creates ecological problems

Answer

B. creates political unrest

Answer

C. creates uncertainties in government revenues

Answer

E. suppresses agricultural development

Question 3

The concept of choice in Economics refers to

Accepted Answer

C. selection of most pressing wants out of a range of alternatives

Answer

A. a decision between one thing and another

Answer

B. ranking of wants in an ascending order

Answer

D. ranking of wants on a table of preference

Answer

E. separating defective commodities from non-defective ones

Question 4

Through membership of the Economic Community of West African States (ECOWAS) countries have achieved

Accepted Answer

A. a large market for their products

Answer

B. emancipation of Africa

Answer

C. full employment of resources

Answer

D. higher transportation cost of goods within the region

Answer

E. military superiority over other African countries

Question 5

In a given set of data, if the variance is 25, what is the standard deviation?

Accepted Answer

B. 5

Answer

A. 45

Answer

C. 55

Answer

D. 10

Answer

E. 12

Question 6

The value of money is affected by

Accepted Answer

E. general price level

Answer

A. consumer’s income

Answer

B. effective demand

Answer

C. effective supply

Answer

D. equilibrium price

Question 7

Time deposit is the same thing as

Accepted Answer

D. fixed deposit

Answer

A. bank rate

Answer

B. current account

Answer

C. demand deposited

Answer

E. saving account

Question 8

Inflation is a …………….

Accepted Answer

E. persistent rise in the general price level

Answer

A. general increase in the price of a single product

Answer

B. period of economic recession

Answer

C. period of hunger

Answer

D. period of excessive money

Question 9

Average total cost can be expressed as

Accepted Answer

C. total cost divided by total output

Answer

A. average fixed cost plus average variable cost

Answer

B. change in total cost divided by change in output

Answer

D. total fixed cost plus total variable cost

Answer

E. total variable cost divided by total output

Question 10

The price and quantity of crude oil and petrol sold to other countries by Nigeria is fixed by the

Accepted Answer

C. OPEC

Answer

A. ECOWAS

Answer

B. IMF

Answer

D. NNPC

Answer

E. none

Question 11

Which of the following hinder(s) effective distribution of goods in Nigeria?

Accepted Answer

D. numerous middlemen

Answer

A. Branding and packaging of goods

Answer

B. Good transportation network

Answer

C. Large quantity of goods

Answer

E. Warehousing facilities

Question 12

The following are qualities of money EXCEPT

Accepted Answer

E. rationality

Answer

A. acceptability

Answer

B. divisibility

Answer

C. homogeneity

Answer

D. portability

Question 13

Which of the following is a determinant of elasticity of supply?

Accepted Answer

C. Durability of the product

Answer

A. Consumer’s income

Answer

B. Degree of necessities

Answer

D. Number of uses of the commodity

Answer

E. Proportion of income spent on the product

Question 14

The process of building up country’s capacity to process raw materials for the production of goods is known as

Accepted Answer

C. industrialization

Answer

A. firm

Answer

B. industry

Answer

D. location of industry

Answer

E. localization

Question 15

These are the objectives of industrial strategies in Nigeria EXCEPT

Accepted Answer

D. promotion of import oriented industries

Answer

A. industrial financing

Answer

B. maximization of local value added

Answer

C. promotion of export oriented industries

Answer

E. provision of economic and social infrastructures

Question 16

Disguised unemployment is the same thing as

Accepted Answer

D. under-employment

Answer

A. residual unemployment

Answer

B. seasonal unemployment

Answer

C. structural unemployment

Answer

E. voluntary unemployment

Question 17

Oil was first discovered in commercial quantity in ……….. State.

Accepted Answer

C. Oloibiri, Rivers

Answer

A. Amasoma, Bayelsa

Answer

B. Bonny, Rivers

Answer

D. Igbokoda, Ondo

Answer

E. Warri, Delta

Question 18

A production possibility curve shows the

Accepted Answer

B. possible combinations of two commodities

Answer

A. resources used to produce a particular commodity

Answer

C. rate of inflation

Answer

D. rate of unemployment in the country

Answer

E. tabular illustration of production possibilities

Question 19

The demand curve of a perfect competitive market is infinitely elastic indicating that the firm can

Accepted Answer

B. sell any quantity of output at the prevailing price

Answer

A. refuse to sell any quantity

Answer

C. sell fixed quantity of output at the prevailing market price

Answer

D. sell less quantity

Answer

E. sell more quantity at a higher price

Question 20

A firm is said to be a public joint-stock company when it

Accepted Answer

E. sells its shares to members of the public

Answer

A. has unlimited liability

Answer

B. is administered by the public

Answer

C. is owned by the government

Answer

D. operates as a public corporation

Question 21

Which of the following is a form of business enterprise?

Accepted Answer

C. Partnership

Answer

A. Cartel

Answer

B. Entrepreneurship

Answer

D. Stock exchange

Answer

E. Supermarket

Question 22

The International Monetary Fund (IMF) was set up mainly to

Accepted Answer

B. create conditions favourable for the growth of world trade

Answer

A. cater for financial needs of developed countries

Answer

C. create favourable balance of payment

Answer

D. develop domestic trade

Answer

E. offset foreign debts only

Question 23

Using Expenditure Approach to estimate National Income, Y is equal to

Accepted Answer

B. C + l + G + X – M + P

Answer

A. C + l + G + X – M + P - V

Answer

C. C + l + G – X + P

Answer

D. C – 1 + G + X – M + P

Answer

E. C + l – G + X – M – P

Question 24

The unit for measuring changes in prices and output is called ………………. index

Accepted Answer

E. price

Answer

A. capital

Answer

B. expenditure

Answer

C. income

Answer

D. money

Question 25

The concentration of firms in one area is referred to as of ……………. industries.

Accepted Answer

B. localization

Answer

A. location

Answer

C. multiplication

Answer

D. proliferation

Answer

E. pluralization

Question 26

The following are the differences between domestic and international trade EXCEPT

Accepted Answer

C. land

Answer

A. cultural differences

Answer

B. currency

Answer

D. language

Answer

E. laws

Question 27

The correct relationship between income (Y), consumption (C) and savings (S) is

Accepted Answer

D. Y = C + S

Answer

A. C = Y + S

Answer

B. S = Y + C

Answer

C. S = Y + S

Answer

E. Y = C – S

Question 28

Entrepreneur is associated more with

Accepted Answer

E. risk bearing

Answer

A. capital management

Answer

B. production of beverage

Answer

C. profit making

Answer

D. profit sharing

Question 29

Production is best defined in economics as

Accepted Answer

A. creation of utility yielding goods and services

Answer

B. distribution of goods and services

Answer

C. manufacturing of goods by small factories

Answer

D. provision of basic amenities

Answer

E. rendering of services only

Question 30

A major feature of capitalism is

Accepted Answer

B. competition

Answer

A. collective ownership of means of production

Answer

C. equality or egalitarianism

Answer

D. redistribution of income

Answer

E. socialization and welfare

Question 31

When the value of a country’s export exceeds her imports, there will be a

Accepted Answer

C. favorable balance of trade

Answer

A. deficit current account

Answer

B. excess visible imports only

Answer

D. favourable capital account

Answer

E. surplus current account

Question 32

Taxes levied on locally manufactured goods are called

Accepted Answer

B. excise duties

Answer

A. custom duties

Answer

C. purchase tax

Answer

D. sales tax

Answer

E. VAT

Question 33

A monopolist is a

Accepted Answer

E. single producer or seller of a commodity that has no close substitute

Answer

A. duopolist

Answer

B. group of producers of related goods

Answer

C. partnership business that produces a commodity with high demand

Answer

D. single producer or seller of a commodity at cheap rate

Question 34

The demand for salt is …………

Accepted Answer

B. Inelastic

Answer

A. Elastic

Answer

C. Unitary elastic

Answer

D. both a and b

Question 35

Economic growth can be defined as

Accepted Answer

A. a rapid and sustained rise in real output per head

Answer

B. A rise in real income per head

Answer

C. an increase in technology only

Answer

D. insufficiency in food production

Answer

E. over population in a country

Question 36

When the demand for foreign exchange exceeds its supply, the value of the domestic currency

Accepted Answer

B. depreciates

Answer

A. appreciates

Answer

C. expands

Answer

D. Increases

Answer

E. inflates

Question 37

The amount of satisfaction per unit of the commodity consumed is called

Accepted Answer

B. average utility

Answer

A. average cost

Answer

C. marginal cost

Answer

D. marginal utility

Answer

E. total utility

Question 38

The purchasing power of the Naira will fall when

Accepted Answer

D. there is inflation

Answer

A. worker are retrenched

Answer

B. the colour of the Naira is changed

Answer

C. the military take over

Answer

E. none

Question 39

The growth of a country’s population is affected by

Accepted Answer

B. number of births per thousand of the population

Answer

A. military might of the country

Answer

C. number of people willing to be counted

Answer

D. the amount of money in circulation

Answer

E. the number of men in the population

Question 40

Labour force simply means the

Accepted Answer

E. working population

Answer

A. demand and supply of labour

Answer

B. efficiency of labour

Answer

C. job seekers

Answer

D. unemployable population

Question 41

Which of the following is NOT an advantage of tabular presentation of data?

Accepted Answer

D. Occupies more space than mathematical equation

Answer

A. Enables easy location of required figures

Answer

B. Helps to calculate derived quantities

Answer

C. Makes for easy comparison of figures

Answer

E. Shows whether the figures are increasing or decreasing

Question 42

The additional satisfaction derived from the consumption of one more unit of a good is called

Accepted Answer

D. marginal utility

Answer

A. marginal cost

Answer

B. marginal product

Answer

C. marginal revenue

Answer

E. total Utility

Question 43

Price elasticity of supply measures the responsiveness of quantity supplied to

Accepted Answer

B. a change in the price of the commodity

Answer

A. a change in the demand for the product V

Answer

C. changes in consumers

Answer

D. changes in prices of other commodities

Answer

E. changes in suppliers income

Question 44

Which of these factors causes a change in the quantity demanded of a commodity?

Accepted Answer

D. Price of the commodity concerned

Answer

A. Income

Answer

B. Population

Answer

C. Price of other commodities

Answer

E. Taste and fashion

Question 45

Data presented in tables are usually arranged in ………… and …………

Accepted Answer

D. rows, columns

Answer

A. charts, tables

Answer

B. , graphs, rows

Answer

C. pictograms, columns

Question 46

The first National development plan period was from

Accepted Answer

B. 1962-1968

Answer

A. 1955-1959

Answer

C. 1965-1970

Answer

D. 1970-1974

Answer

E. 1975-1980

Question 47

One of the roles of industrialization in economic development of Nigeria is

Accepted Answer

A. employment generation

Answer

B. environmental pollution

Answer

C. target of enemy’s attack

Answer

D. unemployment

Answer

E. uneven development

Question 48

Which of the following is a function of the central bank?

Accepted Answer

D. Issuing of currency

Answer

A. Accepting deposits from the public

Answer

B. Agent of payment for individuals

Answer

C. Discounting bills of exchange

Answer

E. Provision of short term housing loans

2009 NECO Economics Past Questions

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