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 331: In a socialist economic system, decisions relating to the fundamental economic problems are taken by Options:
  A) academicians
  B) government
  C) individuals
  D) judiciary
  E) manufacturers
  Show Answer
  The correct answer is B.
• Question 332: The most generally accepted definition of Economics was given by Options:
  A) Adam Smith
  B) David Ricardo
  C) Lord Robinson
  D) Thomas Mathus
  E) Sam Aluko
  Show Answer
  The correct answer is C.
• Question 333: Which of the following is true about average cost? Options:
  A) Fixed cost/quantity
  B) Marginal + Fixed cost
  C) Quantity × Fixed cost
  D) Total cost/quantity
  E) Total cost - fixed cost Quantity
  Show Answer
  The correct answer is D.
• Question 334: Individuals who buy new shares in anticipation of reselling at higher prices in the stock exchange market are called Options:
  A) bears
  B) brokers
  C) bulls
  D) jobbers
  E) stags
  Show Answer
  The correct answer is C.
• Question 335: The following are the main problems of distribution of essential commodities in Nigeria EXCEPT Options:
  A) excessive demand
  B) hoarding of goods
  C) long chain of distribution
  D) poor storage facilities
  E) poor transportation network
  Show Answer
  The correct answer is A.
• Question 336: The introduction of money into the economy has helped to resolve the following problems EXCEPT Options:
  A) accessibility of needs
  B) availability of goods
  C) coincidence of wants
  D) making deferred payments
  E) measure and store of value
  Show Answer
  The correct answer is A.
• Question 337: The types of unemployment that evolved the use of machines to replaces human labour is known as Options:
  A) cyclical unemployment
  B) frictional unemployment
  C) seasonal unemployment
  D) structural unemployment
  E) technological unemployment
  Show Answer
  The correct answer is B.
• Question 338: To an individual, the term cost will include expenditure on the following EXCEPT Options:
  A) clothing
  B) Entertainment
  C) housing
  D) payment of school fees
  E) settling national debts
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  The correct answer is E.
• Question 339:

  The assumptions of the principles of comparative cost advantage is based onI. Absence of Trade Restrictions

  II. No transport costs

  III. Constant technology

  Options:
  A) II & III only
  B) I & II only
  C) I, II & III only
  D) II only
  E) III only
  Show Answer
  The correct answer is B.
• Question 340: When total utility is at maximum, then marginal utility is Options:
  A) decreasing
  B) increasing
  C) maximum
  D) negative
  E) zero
  Show Answer
  The correct answer is E.