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 201: Goods that are useful, scarce and can command price are called …………. goods. Options:
  A) capital
  B) consumer
  C) economic
  D) free
  E) scarce
  Show Answer
  The correct answer is C.
• Question 202: The equation MV PT is known as Options:
  A) demand and supply equation
  B) equilibrium equation
  C) equation of exchange
  D) money supply equation
  E) price index numbers
  Show Answer
  The correct answer is D.
• Question 203: Plantation farming can best be defined as cultivation of Options:
  A) crops using hoes and cutlasses for farming
  B) food crops for personal consumption
  C) food for use by the family
  D) large scale farms of cash crops
  E) livestock for commercial purposes
  Show Answer
  The correct answer is D.
• Question 204: Which of the following goods are NOT examples of joint supply? Options:
  A) Beef and hides
  B) fuel and kerosene
  C) Palm oil and kernel
  D) Tea and coffee
  E) Wool and Mutton
  Show Answer
  The correct answer is D.
• Question 205: The following countries are members of ECOWAS EXCEPT Options:
  A) Angola
  B) Ghana
  C) Ivory coast
  D) Liberia
  E) Niger Republic
  Show Answer
  The correct answer is A.
• Question 206: A tax system in which the income earner pays a fixed percentage of his income annually is known as …………. tax. Options:
  A) direct
  B) indirect
  C) progressive
  D) proportional
  E) regressive
  Show Answer
  The correct answer is D.
• Question 207: A comprehensive statement of Income and expenditure on international accounts for one financial year is called Options:
  A) balance of payments
  B) balance of trade
  C) budget
  D) Index of trade
  E) terms of trade
  Show Answer
  The correct answer is A.
• Question 208: The African Development Bank was set up in 1964 and has its headquarters in Options:
  A) Burkina Faso
  B) Ivory Coast
  C) Liberia
  D) Niger Republic
  E) Senegal
  Show Answer
  The correct answer is B.
• Question 209: The theory of absolute advantage was propounded by Options:
  A) Adam Smith
  B) David Ricardo
  C) Irving Fisher
  D) JB Kynes
  E) Thomas Malthus
  Show Answer
  The correct answer is A.
• Question 210: The following are the objectives of economic planning EXCEPT Options:
  A) achieving balanced growth
  B) diversification of the economy
  C) creation of more employment opportunities
  D) equitable allocation of resources
  E) rapid population growth
  Show Answer
  The correct answer is E.