NECO Economics Exam Past Questions and Answers

Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.

• Question 171: The value of money is affected by Options:
  A) consumer’s income
  B) effective demand
  C) effective supply
  D) equilibrium price
  E) general price level
  Show Answer
  The correct answer is E.
• Question 172: Economic growth can be defined as Options:
  A) a rapid and sustained rise in real output per head
  B) A rise in real income per head
  C) an increase in technology only
  D) insufficiency in food production
  E) over population in a country
  Show Answer
  The correct answer is B.
• Question 173: A monopolist is a Options:
  A) duopolist
  B) group of producers of related goods
  C) partnership business that produces a commodity with high demand
  D) single producer or seller of a commodity at cheap rate
  E) single producer or seller of a commodity that has no close substitute
  Show Answer
  The correct answer is E.
• Question 174: The process of building up country’s capacity to process raw materials for the production of goods is known as Options:
  A) firm
  B) industry
  C) industrialization
  D) location of industry
  E) localization
  Show Answer
  The correct answer is C.
• Question 175: Which of the following is a function of the central bank? Options:
  A) Accepting deposits from the public
  B) Agent of payment for individuals
  C) Discounting bills of exchange
  D) Issuing of currency
  E) Provision of short term housing loans
  Show Answer
  The correct answer is D.
• Question 176: Taxes levied on locally manufactured goods are called Options:
  A) custom duties
  B) excise duties
  C) purchase tax
  D) sales tax
  E) VAT
  Show Answer
  The correct answer is B.
• Question 177: Which of the following is a form of business enterprise? Options:
  A) Cartel
  B) Entrepreneurship
  C) Partnership
  D) Stock exchange
  E) Supermarket
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  The correct answer is C.
• Question 178: The demand curve of a perfect competitive market is infinitely elastic indicating that the firm can Options:
  A) refuse to sell any quantity
  B) sell any quantity of output at the prevailing price
  C) sell fixed quantity of output at the prevailing market price
  D) sell less quantity
  E) sell more quantity at a higher price
  Show Answer
  The correct answer is B.
• Question 179: Through membership of the Economic Community of West African States (ECOWAS) countries have achieved Options:
  A) a large market for their products
  B) emancipation of Africa
  C) full employment of resources
  D) higher transportation cost of goods within the region
  E) military superiority over other African countries
  Show Answer
  The correct answer is A.
• Question 180: The amount of satisfaction per unit of the commodity consumed is called Options:
  A) average cost
  B) average utility
  C) marginal cost
  D) marginal utility
  E) total utility
  Show Answer
  The correct answer is B.