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 351: Which of the following is NOT a reason for the absence of an industry in the rural areas? Options:
  A) Absence of financial institution
  B) restricted market
  C) inadequate power and water supply
  D) inadequate transportation
  E) presence of external economies
  Show Answer
  The correct answer is A.
• Question 352: In a free market economy, wages are determined by Options:
  A) the employees
  B) the employers
  C) trade unions
  D) interaction of demand and supply forces
  E) the government
  Show Answer
  The correct answer is D.
• Question 353: Of what importance is a wholesaler in the chain of distribution? Options:
  A) creation of artificial scarcity
  B) bulk breaking
  C) formation of trade unionism
  D) hoarding of goods
  E) making prompt payment to producers
  Show Answer
  The correct answer is B.
• Question 354: For a monopolist, the demand curve is Options:
  A) inelastic
  B) perfectly elastic
  C) perfectly inelastic
  D) elastic
  E) unitary elastic
  Show Answer
  The correct answer is C.
• Question 355:

  A problem of price control is

  Options:
  A) development of black markets
  B) increased earning and higher profit
  C) increase in employment
  D) increase investment
  E) redistribution of income
  Show Answer
  The correct answer is A.
• Question 356: The most generally accepted definition of economics is Options:
  A) an inquiry into the nature and causes of the wealth of nations
  B) the science of material welfare
  C) the science which studies human behavior as a relationship between ends and scarce means which have alternative use
  D) the science that treats phenomena from the stand point of price
  E) the practical science of production and distribution of wealth
  Show Answer
  The correct answer is C.
• Question 357: The demand for a commodity for the sake of what it will yield is Options:
  A) competitive demand
  B) composite demand
  C) effective demand
  D) joint demand
  Show Answer
  The correct answer is A.
• Question 358: The first commercial oil well in Nigeria was discovered in Options:
  A) 1938
  B) 1951
  C) 1956
  D) 1958
  E) 1961
  Show Answer
  The correct answer is C.
• Question 359: An economic system where both the public and individuals own and control means of production is known as ……… system Options:
  A) capitalism
  B) communist
  C) mixed
  D) socialist
  E) welfarist
  Show Answer
  The correct answer is C.
• Question 360: Which of the following is NOT an internal dis-economy of scales? Options:
  A) Easy management and less administrative cost
  B) large firm suffers from bureaucracy or red tapism
  C) less personal relationship between management and employees
  D) Motivation may be lacking in the large firm
  E) slow response to changes
  Show Answer
  The correct answer is A.