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 241: A tax system in which the rich pays a higher percentage income as tax than the poor is known as Options:
  A) capital gains tax
  B) progressive taxation
  C) proportional taxation
  D) regressive taxation
  E) sales tax
  Show Answer
  The correct answer is B.
• Question 242: Population density refers to Options:
  A) total population
  B) the total population divided by the total area of land
  C) the total area of land divided by the total population
  D) the population ratio of male and female
  E) optimum Population level
  Show Answer
  The correct answer is B.
• Question 243: Unemployment resulting from physical or mental deficiency is known as……………unemployment. Options:
  A) cyclical
  B) disguised
  C) Frictional
  D) residual
  E) Voluntary
  Show Answer
  The correct answer is D.
• Question 244: Which of the following is NOT an advantage of localization of industry? Options:
  A) Availability of social amenities
  B) Development of subsidiary industries
  C) Highly organized markets
  D) supply of skilled labour
  E) traffic De-congestion
  Show Answer
  The correct answer is E.
• Question 245:

  If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

  Options:
  A) balanced budget
  B) deficit budget
  C) favorable budget
  D) surplus budget
  E) unfavorable budget
  Show Answer
  The correct answer is B.
• Question 246:

  The act of cultivating land and rearing of animal for man's use is

  Options:
  A) agriculture
  B) mono culture
  C) forestry
  D) aqua-science
  E) horticulture
  Show Answer
  The correct answer is A.
• Question 247:

  An economic system in which individual control the productive resources is known as

  Options:
  A) capitalism
  B) communism
  C) freedomism
  D) socialism
  E) welfarism
  Show Answer
  The correct answer is A.
• Question 248:

  The contribution of petroleum to the economy of nigerian is most prominent in the area of

  Options:
  A) employment generation
  B) fuel provision
  C) infrastructural development
  D) revenue generation
  E) technical know-how
  Show Answer
  The correct answer is D.
• Question 249:

  The Nigerian indigenization decree process involves

  Options:
  A) 5 phases
  B) 6 phases
  C) 4 phases
  D) 3 phases
  E) 2 phases
  Show Answer
  The correct answer is D.
• Question 250:

  Transcationary motive implies, holding money

  Options:
  A) for future investment
  B) for day to day expenses
  C) for unforeseen contingencies
  D) to settle previous debts
  E) to buy share in the stock exchange market
  Show Answer
  The correct answer is B.