Mostly Repeated NECO Past

Questions and Answers on

Economics
November 7, 2020 - by Duncan Asanaenyi -

Mostly Repeated NECO Questions and Answers on

Economics

Have you been wondering how NECO do set or conduct their

exams? If you answered yes to that question, you have no worries
cause you’re at the right place.

While preparing for this examination, you must have alongside

with you past questions of several subjects which will guide you
on the type of questions set.

This is why I have set out possible questions that you may likely
see in the exams.

This article would extensively talk about how NECO sets their
examination, show you a little of how the obj and theory questions
will look like.

To learn more, all you have to do is to read this guide carefully to

the end.

Instructions and Guidelines for NECO Examination

For every examination, there are instructions and guidelines set

for student to comply.

Before we continue, I’d tell you more about NECO you might not
:
 have known.

NECO which accroymn stands for National Examination Council is

a board that regulate examination for final year student in
secondary school.

Unlike WAEC, which is written in 6 different countries in Africa,

NECO is written only in Nigeria.

Additionally, NECO result can be used only in Nigeria to gain

admission into any tertiary institution.

It is mandatory for every student to know that, the examination

paper is divided into two parts which is; Paper 2 & 3

Paper 2 is the theory section where you’re expected to give

detailed information of what was learnt during lesson hours. In
this section you should be expecting over 10 questions. This
section carries the highest point.

Paper 3 is the Objective (OBJ) section. This section is written first

before Paper 3. In this section you’ll be expecting 60 questions.

Also, while writing in the examination paper, you are advised not
to write by the margin.

Shade all options boldly and erase where necessary.

Do not cheat in the examination hall, defaulters will be

apprehended and sent behind bars.

NECO Objective Questions on Economics

(Paper 3)
1. ‘Alternative uses’ in Robbin’s definition of economics, means
:
 A. available resources can satisfy all wants.
B. choice of what to satisfy.
C. resources can be used for different purposes.
D. scarcity of resources.
E. unlimited human wants.

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2. The need for choice in economics arises as a result of

A. Difference in individual needs.
B. Human wants which can be matched with scarce resources.
C. Inadequate resources with unlimited human wants.
D. Lack of effective demand.
E. Limited demand and numerous resources.

3. The division of a circular plane into sectoral representations in

degrees is referred to as
A. Bar Chart
B. Histogram
C. Ogive
D. Pictogram
E. Pie Chart

4. One of the advantages of mean deviation as a tool of economic

analysis is
A. All the values in a distribution are used for computation.
B. It can be used for further statistical analysis.
C. It does not ignore minus and plus signs when calculating.
D. It is easy to calculate.
E. It is easy to understand.

5. The basic economic problems of the society are

A. Abundance, for whom to distribute
:
 B. How to produce and sell
C. Scarcity, for whom to produce and how
D. Scarcity, when to produce and how
E. What to produce, how and for whom

6. The following are characteristics of labour, except that it

A. Controls other factors of production
B. Creates and innovates
C. Immobilizes the factor
D. Needs motivation
E. Receives wages and salaries

7. Money set aside for replacement of capital used in the

production process is referred to as
A. Capital accumulation
B. Capital consumption allowance
C. Devaluation of assets
D. Paid up capital
E. Working capital

8. Which of the following is not a type of business organization?

A. Co-operative society
B. Entrepreneurship
C. Partnership
D. Public corporation
E. Sole proprietorship

9. Which of the following discourages small and medium scale

enterprises from collecting loans in commercial bank?
A. Collateral securities
B. Distance to the bank
C. Educational qualification
D. Long procedure
:
 E. Reserve requirement ratio

10. The effect of emigration on a country’s population is to

A. Cause overpopulation
B. Increase the population size
C. Reduce the population of dependants
D. Reduce the size of the population
E. Increase the working population

11. The theory which states that population will grow at geometric
rate while food production will grow at arithmetic rate was
propounded by
A. Adam Smith
B. Alfred Marshall
C. David Ricardo
D. Lionel Robbins
E. Robert Malthus

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12. Creditors gain and debtors lose during the period of

A. Deflation
B. Inflation
C. Recession
D. Reflation
E. Stagflation

13. Which it the following pairs of age groupings belong to the

independent population
A. 0 —17 years and 40 years and above
B. 0 —17 years and 60 years and above
C. 18 — 40 years and 41— 59 years
D. 18 — 40 Yes and 41 — 80 years
E. 60 years and above
:
 14. Which of the following is the normal channel by which
commodities reach final consumers?
A. Manufacturer – wholesaler – retailer – consumer
B. Manufacturer – wholesaler – retailer – agent
C. Manufacturer – wholesaler – sales representative – retailer –
consumer
D. Manufacturer – wholesaler – retailer – sales representative–
consumer
E. Manufacturer – wholesaler – retailer – agent – consumer

15. A process which ensures awareness of a particular product to

the public is referred to as
A. Advertisement
B. Consumption
C. Distribution
D. Transportation
E. Warehousing

16. Savings account is mostly preferred by low income earners

because
A. Depositors earn interest from deposits
B. Depositors receives interest weekly
C. It attracts higher interest rate than fixed deposit
D. Ut can easily be used by a third party
E. It is operated with the use of a cheque booklet

17. Which of the following does not describe a legal tender?

A. Any form of commodities offered for sale
B. Commodity generally acceptable as a medium of exchange
C. Foreign currencies that are allowed for buying imported goods
D. Means of exchange authorized by the state
E. Portable and acceptable means of exchange
:
 18. One of the reasons for the poor performance of the
agricultural sector in Nigeria is the
A. Absence of reseat institutes
B. Low cost of agricultural inputs
C. Neglect of the sector
D. Poor natural endowments
E. Too many farmers in the sector

19. The variation in productivity resulting from a proportionate

increase in all inputs is referred to as _______ scale.
A. Constant return to
B. Decreasing return to
C. Economies of
D. Increasing return to
E. Returns to

20. In a competitive labour market, the wage rate is usually

determined by
A. Decrease in supply of labour
B. Increase in demand for labour
C. Interplay of demand and supply of labour
D. The number of buyers and sellers in the market
E. The productivity of labour

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21. Which of the following is a consequence of unemployment?

A. Increase in crime rate
B. High rate of migrants
C. Increase in investment
D. Low rate of dependency
E. Presence of peace and stability
:
 22. The total amount of money available for use in the economy at
a given period of time is referred to as
A. Demand for money
B. Representative money
C. Supply of money
D. Token money
E. Value of money

23. Which of the following economists postulated the theory of

demand for money?
A. Adam Smith
B. Alfred Marshall
C. John S. Mill
D. Lionel Robbins
E. Menard Keynes

24. If a deposit to a bank is N10,000 and the cash reserve ratio is

20%, what is the total credit that the banking system can create?
A. N1,000
B. N5,000
C. N20,000
D. N40,000
E. N50,000

25. Monocultural farming refers to the cultivation of _______

crop(s).
A. a single
B. commercial
C. few
D. food
E. seasonal

NECO Theory Questions on Economics

:
 (Paper 2)
1. State:
(i) Three similarities and,
(ii) One difference between the African Development Bank (ADB)
and the International Bank for Reconstruction and Development
(IBRD).
b. Mention two specific benefits Nigeria has obtained from her
membership of the World Bank.

2. (a) What is Trade Union

(b) Discuss any four functions of Trade Union
(c) List any two weapons used by Trade Union in collective
bargaining
3. (i) What is Money?
(ii) Explain four functions of money to the development of the
Nigerian economy
3. (i) Define tarrifs
(ii) Give four reasons why the government of a country imposes
tarrifs

4. (i) Define Elasticity of Supply

(ii) Explain four factors that determine Elasticity of supply.

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