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 321: The indices used to measure the cost of living is Options:
  A) consumption expenditure
  B) national income
  C) per capital income
  D) price index
  E) savings and investment
  Show Answer
  The correct answer is D.
• Question 322: In Economics, want means…………aspiration Options:
  A) endless
  B) qualitative
  C) quantifiable
  D) satisfied
  Show Answer
  The correct answer is A.
• Question 323: Which of the following will NOT be a barrier to international trade? Options:
  A) Communication hindrances
  B) Easy conversion of currencies
  C) Geographical locations
  D) Ideological differences
  E) Imposition of duties and quotas
  Show Answer
  The correct answer is B.
• Question 324: Excise duties are taxes levied on Options:
  A) goods coming into the country
  B) goods going out of the country
  C) industrial incomes
  D) locally manufactured goods
  E) selected consumer durable
  Show Answer
  The correct answer is D.
• Question 325: The excess profit made by a firm in a competitive market situation in the short-term is known as Options:
  A) break even
  B) marginal profit
  C) net profit
  D) normal profit
  E) super normal profit
  Show Answer
  The correct answer is E.
• Question 326: The amount of money required for the day-to-day running of a business is known as Options:
  A) economics capital
  B) fixed capital
  C) paid- up capital
  D) reserve capital
  E) working capital
  Show Answer
  The correct answer is E.
• Question 327: Which of the following is NOT a factor to be considered in siting an industry in a particular area? Options:
  A) access to raw material
  B) availability of recreational facilities
  C) market
  D) sources of power
  E) transport facilities
  Show Answer
  The correct answer is B.
• Question 328: Arrangement of wants in order of importance is brought about by Options:
  A) excess supply of goods
  B) interest in doing so
  C) scarcity of resources
  D) opportunity cost
  E) limited wants
  Show Answer
  The correct answer is C.
• Question 329: The decision of whether to use labour or capital intensive techniques in production process is a problem of Options:
  A) for whom to produce
  B) how to produce
  C) resource allocation
  D) what to produce
  E) when to produce
  Show Answer
  The correct answer is B.
• Question 330: When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is Options:
  A) competitive demand
  B) complementary demand
  C) composite demand
  D) derived demand
  E) independent demand
  Show Answer
  The correct answer is A.