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 401: Tc/Q = Options:
  A) marginal cost
  B) Average coat
  C) total cost
  D) equilibrium level
  Show Answer
  The correct answer is B.
• Question 402: The following are type of business organization EXCEPT Options:
  A) co-operative society
  B) Entrepreneurship
  C) partnership
  D) public corporation
  E) Sole proprietorship
  Show Answer
  The correct answer is A.
• Question 403: Which of the folowing NOT among the objectives of OPEC? Options:
  A) to stabilize the revenue from oil to producing countries
  B) to stabilize the price of iol in the world market
  C) to make sure that oil flows to all the consuming countries
  D) to estabilished petroleum refineries in all member state
  E) to co-ordinate and harmonize the oil policies of member countries
  Show Answer
  The correct answer is B.
• Question 404: If the consumer demand for product X increases, as the demand for product, Y increases then the goods X and Y are Options:
  A) complimentary goods
  B) composite goods
  C) derived good
  D) independent goods
  E) substitute good
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  The correct answer is A.
• Question 405: An economic system in wich the decision on what and how to produce is determined by the individual is called Options:
  A) capitalism
  B) communism
  C) Socialism
  D) traditionalism
  E) welfarism
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  The correct answer is E.
• Question 406: To discourage the consumption of harmful commodities, government should tax such commodities if they have Options:
  A) elastic demand
  B) inelastic demand
  C) negative demand
  D) positive demand
  E) unitary demand
  Show Answer
  The correct answer is B.
• Question 407: The formular used by the Expenditure approach to calculate National income is Options:
  A) Y=C + I + X - M –G
  B) Y= C + X – M – I + G
  C) Y = C + I + G + X – M
  D) Y = C – I + X – M + G
  E) Y = C + G – X + M – I
  Show Answer
  The correct answer is C.
• Question 408: A producer who can only influence the price of his product but canNOT determine the quantity to be sold is referred to as Options:
  A) duopoly
  B) monopolist
  C) monopsonist
  D) oligopoly
  E) perfect competitor
  Show Answer
  The correct answer is B.
• Question 409: Government expenditure on universal basic education and subsidy on agriculture are aimed at Options:
  A) encouraging growth of the economy
  B) projecting images of government
  C) re-allocation of resources
  D) redistribution of income and wealth
  E) stabilization of the economy
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  The correct answer is C.
• Question 410: Which of the following measure will NOT serves as a control during inflation period? Options:
  A) increase in personal income tax
  B) increase in bank rate and interest
  C) increase in government capital expenditure
  D) reduction in money supply
  E) reduction in government recurrent expenditure
  Show Answer
  The correct answer is C.