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 361: Abdul is faced with a choice between buying a new notebook and a pen with ₦10. Since the ₦10 cannot give him both items he decide to buy the notebook. The money cost to him is Options:
  A) ₦10
  B) ₦20
  C) ₦30
  D) ₦40
  E) ₦50
  Show Answer
  The correct answer is A.
• Question 362: The theory of income determination is traced to Options:
  A) Rev Thomas Mathus
  B) Lord John Mynard Keynes
  C) Prof Adam Smith
  D) R G Lipsey
  E) Prof Umar SI
  Show Answer
  The correct answer is B.
• Question 363: The per capita income is calculated as Options:
  A) GNP- working age population
  B) GNP- real national income
  C) GNP- total capital expenditure
  D) GNP- dependency ratio
  E) GNP- population
  Show Answer
  The correct answer is E.
• Question 364: To finance a deficit balance of payment, a country may decide to Options:
  A) borrow from abroad
  B) increase its foreign investment
  C) privatizes its economy
  D) reduce domestic consumption
  E) secure more factor of production
  Show Answer
  The correct answer is C.
• Question 365: One of the following is NOT a reason for increase in public expenditure Options:
  A) decrease arising from public debt and its servicing
  B) increase in capital expenditure to provide social services
  C) increase financial commitment for defence and security
  D) increase in recurrent expenditure with regard to wages and salary paid to public servant
  E) returns on viable public corporation
  Show Answer
  The correct answer is D.
• Question 366: Which of the following is a motive for holding money? Options:
  A) celebration
  B) daily purchases
  C) election campaign
  D) payment of taxes
  Show Answer
  The correct answer is B.
• Question 367: Price legislation means Options:
  A) directing market specialist to fix prices
  B) interplay of either demand or supply
  C) producers are prices givers
  D) regulating the price system by the government
  E) the use of market forces
  Show Answer
  The correct answer is A.
• Question 368: Which of the following is NOT a function of taxation? Options:
  A) make few people rich in the country
  B) raise revenue for the government
  C) redistribution of income
  D) reduces production and consumption of harmful goods
  E) used as anti-inflationary device
  Show Answer
  The correct answer is D.
• Question 369: Using functional relationship in economics QX = f (px, po, y, T); po stand for Options:
  A) level of income of the consumer
  B) price of x
  C) price of other commodities
  D) production function of x
  E) price index
  Show Answer
  The correct answer is C.
• Question 370: Equilibrium prices is Options:
  A) a price which equates demand with supply
  B) a price where there is excess demand
  C) where consumers gain much
  D) where producers gain much
  E) where supply is more than demand
  Show Answer
  The correct answer is A.