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 411: Remuneration of labour based on number of hours worked is known as Options:
  A) fees
  B) commission
  C) time-rates
  D) salary
  E) wages
  Show Answer
  The correct answer is C.
• Question 412: Which of the following is NOT a feature of capitalism ? Options:
  A) detailed economics planning
  B) Free enterprise
  C) competition
  D) private ownership of property
  E) Entrepreneurs and the pursuit of profit
  Show Answer
  The correct answer is A.
• Question 413: If the prices of a commodity increases from N8.00 to N10.00 and the demand decreases from 100 to 80 respectively, what is the price elasticity of demand for the commodity? Options:
  A) 0.5
  B) 0.8
  C) 1
  D) 1.5
  E) 1.8
  Show Answer
  The correct answer is B.
• Question 414: When combination of two goods which a consumer derive equal satisfaction is plotted on a graph, the graph is known as Options:
  A) demand curve
  B) indifference curve
  C) opportunity curve
  D) utility curve
  E) supply curve
  Show Answer
  The correct answer is B.
• Question 415: Long-run in economic mean a period of time in which Options:
  A) all factor inputs are not being used
  B) all factor inputs are variable
  C) all factor inputs are fixed
  D) only few factor inputs are variable
  E) firms are not producing at all
  Show Answer
  The correct answer is B.
• Question 416: If commodities A & B are jointly demanded, what will be the effect of an increase in the price of A on the demand for commodity B? Options:
  A) decrease in demand for commodity B
  B) decrease in price of commodity B
  C) demand for commodity B remain constant
  D) increase in demand for commodity B
  E) increase in the price of commodity B
  Show Answer
  The correct answer is A.
• Question 417: Which of the following factors will NOT account for an outward shift of production possibility curve? Options:
  A) budgeting and planning based on expectations
  B) expansion in employment
  C) discovering and exploration of new resources
  D) introduction of improved production techniques
  E) skill improvement through education and training
  Show Answer
  The correct answer is A.
• Question 418: The willingness of an individual backed up with purchasing power at a given time is Options:
  A) demand
  B) desire
  C) effective demand
  D) utility
  E) want
  Show Answer
  The correct answer is C.
• Question 419: Which of the following is NOT a factor that brings about changes in demand? Options:
  A) a change in real income
  B) government policy
  C) increase in population
  D) the price of the good or service
  E) taste and fashion
  Show Answer
  The correct answer is A.
• Question 420: When an economy is having a balance of payment surplus the best alternative opened to it is to Options:
  A) borrow from abroad
  B) devalue its currency
  C) increase its foreign reserve
  D) promote imports into the country
  E) sell out its foreign assets
  Show Answer
  The correct answer is C.