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 271: The recent revolution of Cassava from ordinary food crop to export crop will lead to Options:
  A) decrease in price of cassava flour
  B) decrease In production of cassava
  C) decrease In production of local starch
  D) increase In production of other crops
  E) increase in the prices of cassava products
  Show Answer
  The correct answer is E.
• Question 272: The formular (N + 1)/2 is used to determine the Options:
  A) mean
  B) median
  C) mode
  D) standard deviation
  E) mean deviation
  Show Answer
  The correct answer is B.
• Question 273: When the total product starts falling, then the marginal product is Options:
  A) constant
  B) increasing
  C) maximum
  D) negative
  E) zero
  Show Answer
  The correct answer is D.
• Question 274: The variance of a given set of numbers is defined as the Options:
  A) absolute value of the standard deviation
  B) square of the standard deviation
  C) square root of the standard deviation
  D) square of the mean deviation
  E) square root of the mean deviation
  Show Answer
  The correct answer is B.
• Question 275: A major characteristics of a firm operating at a long-run equilibrium position is that Options:
  A) all costs can be varied
  B) average variable cost is fixed
  C) fixed cost can not be changed
  D) marginal cost is fixed
  E) only variable cost changes
  Show Answer
  The correct answer is A.
• Question 276: The problem of “how to produce” in any economy is solved by Options:
  A) adopting the least cost method of production
  B) combining capital and labour intensive methods of production
  C) employing the services of a manager
  D) using capital intensive method of production
  E) using labour intensive method of production
  Show Answer
  The correct answer is B.
• Question 277: Which of the following is NOT an objective of Economic planning? Options:
  A) Achieving economic self reliance
  B) Achieving economic growth
  C) Creating employment
  D) Equitable allocation of resources
  E) Widening the income gap
  Show Answer
  The correct answer is E.
• Question 278: The following will occur when maximum price is fixed below the free market price EXCEPT that Options:
  A) black market will be encouraged
  B) excess demand will occur
  C) excess supply will occur
  D) rationing of commodities will occur
  E) scarcity of goods will occur
  Show Answer
  The correct answer is C.
• Question 279: The following determine the level of consumption EXCEPT Options:
  A) expectation of price changes
  B) level of income
  C) savings
  D) the rate of taxes paid
  E) the political climate
  Show Answer
  The correct answer is E.
• Question 280: The use of tax and expenditure policy to regulate the economy is known as Options:
  A) deregulation
  B) fiscal policy
  C) monetary policy
  D) physical measures
  E) structural adjustment
  Show Answer
  The correct answer is B.