Economics past questions: NECO SSCE 2003

50 objective questions, with answers. Free to read and practise.

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50 questions, one at a time, marked as you go or at the end. No account needed.

1.
A problem of price control is
1. A.development of black-market
2. B.increased earning and higher profit
3. C.increase in employment
4. D.increase investment
5. E.redistribution of income
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Answer: C increase in employment
2.
A shift of the demand curve leftward from its original position indicate
1. A.an increase in quantity demanded
2. B.a decrease in quantity demanded
3. C.an expansion of demand
4. D.a fall in demand
5. E.price effect on demand
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Answer: D a fall in demand
3.
A tax system which takes lesser percentage of a tax payers income as his income increase is known as
1. A.direct tax
2. B.indirect tax
3. C.progressive tax
4. D.proportional tax
5. E.regressive tax
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Answer: C progressive tax
4.
Abdul is faced with a choice between buying a new NOTE book and a pen with N10. Since the N10 can NOT give him both items he decide to buy NOTE book. The money cost to him is
1. A.N10
2. B.N20
3. C.N30
4. D.N40
5. E.N50
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Answer: A N10
5.
According to the theory of comparative advantages, countries are to specialize based on their
1. A.absolute cost advantages
2. B.absolute cost disadvantages
3. C.comparative cost advantages
4. D.comparative cost disadvantages
5. E.the availability of labour
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Answer: C comparative cost advantages
6.
An economic system where both the public and individuals own and control means of production is known as ……… system
1. A.capitalism
2. B.communist
3. C.mixed
4. D.socialist
5. E.welfarist
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Answer: C mixed
7.
An economy is described as spend-rift if it
1. A.does not concern itself with savings and investment
2. B.has a great ability to generate foreign exchange from investment
3. C.has greater opportunity to receive large income from investment
4. D.invests in income generating industries
5. E.has trade connection with other countries
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Answer: A does not concern itself with savings and investment
8.
Averages cost (AC) equal to
1. A.A\(C _{TC}\)
2. B.T\(C _{AC}\)
3. C.T\(C _{AVC}\)
4. D.T\(C _{MC}\)
5. E.T\(C _{Q}\)
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Answer: D T\(C _{MC}\)
9.
Central bank of Nigerian started operation
1. A.1958
2. B.1959
3. C.1960
4. D.1963
5. E.1973
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Answer: B 1959
10.
Data presented in a circular chart is known as
1. A.circular chart
2. B.component chart
3. C.histogram
4. D.pictograph
5. E.pie chart
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Answer: E pie chart
11.
Economic growth is the
1. A.growth in a nation's life expectancy
2. B.increase in a nation's population
3. C.rate of increase in aggregate demand in a country
4. D.rate of increase in a country's full employment and real output
5. E.rate of increase
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Answer: C rate of increase in aggregate demand in a country
12.
ECOWAS Visa lasts for
1. A.14 days
2. B.30 days
3. C.60 days
4. D.90 days
5. E.100 days
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Answer: D 90 days
13.
Efficiency of labour implies
1. A.education and training
2. B.good working condition
3. C.healthier workforce
4. D.increased productivity worker accompanied by improvement in the quality of output
5. E.the amount of incentives or remuneration given to workers
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Answer: D increased productivity worker accompanied by improvement in the quality of output
14.
Equilibrium prices is
1. A.a price which equates demand with supply
2. B.a price where there is excess demand
3. C.where consumers gain much
4. D.where producers gain much
5. E.where supply is more than demand
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Answer: A a price which equates demand with supply
15.
For a monopolist, the demand curve is
1. A.inelastic
2. B.perfectly elastic
3. C.perfectly inelastic
4. D.elastic
5. E.unitary elastic
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Answer: C perfectly inelastic
16.
In a free market economy, wages are determined by
1. A.the employees
2. B.the employers
3. C.trade unions
4. D.interaction of demand and supply forces
5. E.the government
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Answer: D interaction of demand and supply forces
17.
In calculating mean one should
1. A.add the highest and the lowest number
2. B.divide the highest and the lowest number
3. C.divide the sum of the figure by the number of the figure
4. D.find the most common number
5. E.pick any number that has no partner
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Answer: C divide the sum of the figure by the number of the figure
18.
In economics, electricity, water supply, communication networks, road, etc are known as
1. A.capital structure
2. B.development induces
3. C.development projects
4. D.infrastructural facilities
5. E.project growth
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Answer: D infrastructural facilities
19.
In the demographic transition theory, stage II represents a stage where
1. A.declining birth rates with low death rates lead to little or no population growth
2. B.high birth rate with low death rates lead to no population growth
3. C.there is population growth due to high birth rates and low death rates at that stages
4. D.there is a slow rate of population growth as a result of high birth rate accompanied by high but slightly fluctuating death rate
5. E.there is a very high growth as population as a result of high birth rates accompanied by high but slightly fluctuating death rates
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Answer: D there is a slow rate of population growth as a result of high birth rate accompanied by high but slightly fluctuating death rate
20.
In the equation MV = PT; V stand for
1. A.velocity of circulation of money
2. B.velocity of price change
3. C.volume of goods produced
4. D.volume of money
5. E.volume of transaction
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Answer: B velocity of price change
21.
Minimum price control is aimed at
1. A.increasing the size of the market
2. B.minimizing the profit level
3. C.punishing the consumers
4. D.protecting the consumer
5. E.reducing the size of the market
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Answer: B minimizing the profit level
22.
Of what importance is a wholesaler in the chain of distribution?
1. A.creation of artificial scarcity
2. B.bulk breaking
3. C.formation of trade unionism
4. D.hoarding of goods
5. E.making prompt payment to producers
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Answer: B bulk breaking
23.
One of the following is NOT a reason for increase in public expenditure
1. A.decrease arising from public debt and its servicing
2. B.increase in capital expenditure to provide social services
3. C.increase financial commitment for defence and security
4. D.increase in recurrent expenditure with regard to wages and salary paid to public servant
5. E.returns on viable public corporation
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Answer: D increase in recurrent expenditure with regard to wages and salary paid to public servant
24.
Price legislation means
1. A.directing market specialist to fix prices
2. B.interplay of either demand or supply
3. C.producers are prices givers
4. D.regulating the price system by the government
5. E.the use of market forces
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Answer: A directing market specialist to fix prices
25.
The aim of indigenization policy was to
1. A.build more industries in the economy
2. B.increase the drain in foreign exchange
3. C.increase foreign domination of the economy
4. D.increase the participation of Nigerians in commerce and industry
5. E.send all the foreigners away from Nigeria
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Answer: D increase the participation of Nigerians in commerce and industry
26.
The best way of presenting data in tabular form is in
1. A.bars and columns
2. B.charts and lines
3. C.maps and rows
4. D.pictographs and histogram
5. E.rows and columns
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Answer: C maps and rows
27.
The central point of the Malthusian theory is that
1. A.everybody should become a farmer
2. B.government should provide enough accommodation and food
3. C.increasing population will get enough food
4. D.population increase in geometric progression while food arithmetic progression
5. E.wages has nothing to do with cost of living
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Answer: A everybody should become a farmer
28.
The demand for a commodity for the sake of what it will yield is
1. A.competitive demand
2. B.composite demand
3. C.effective demand
4. D.joint demand
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Answer: A competitive demand
29.
The first commercial oil well in Nigeria was discovered in
1. A.1938
2. B.1951
3. C.1956
4. D.1958
5. E.1961
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Answer: C 1956
30.
The law of variable proportion state that if the quantities of variable factor of production are used with fixed factor, after a certain point,
1. A.each successive unit of the variable factor brings about a decreasing marginal product
2. B.each successive unit of the variable factor bring about equal increase in marginal product
3. C.each successive unit of the variable factor bring about an increasing marginal product
4. D.each successive unit of the variable factor bring about four time increase in marginal product
5. E.each successive unit of the variable factor bring about more than equal increase in marginal product
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Answer: B each successive unit of the variable factor bring about equal increase in marginal product
31.
The most generally accepted definition of economics is
1. A.an inquiry into the nature and causes of the wealth of nations
2. B.the science of material welfare
3. C.the science which studies human behavior as a relationship between ends and scarce means which have alternative use
4. D.the science that treats phenomena from the stand point of price
5. E.the practical science of production and distribution of wealth
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Answer: C the science which studies human behavior as a relationship between ends and scarce means which have alternative use
32.
The per capita income is calculated as
1. A.GNP- working age population
2. B.GNP- real national income
3. C.GNP- total capital expenditure
4. D.GNP- dependency ratio
5. E.GNP- population
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Answer: E GNP- population
33.
The professional that view cost in term of alternatives sacrificed is the
1. A.accountant
2. B.cashier
3. C.economist
4. D.manager
5. E.tax collector
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Answer: C economist
34.
The theory of income determination is traced to
1. A.Rev Thomas Mathus
2. B.Lord John Mynard Keynes
3. C.Prof Adam Smith
4. D.R G Lipsey
5. E.Prof Umar SI
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Answer: B Lord John Mynard Keynes
35.
To finance a deficit balance of payment, a country may decide to
1. A.borrow from abroad
2. B.increase its foreign investment
3. C.privatizes its economy
4. D.reduce domestic consumption
5. E.secure more factor of production
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Answer: C privatizes its economy
36.
Total revenue can be obtained by multiplying
1. A.price by quantity sold
2. B.averages revenue by the demand
3. C.marginal revenue by marginal cost
4. D.average revenue plus marginal revenue
5. E.average cost by variable cost
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Answer: A price by quantity sold
37.
Using functional relationship in economics QX = f (px, po, y, T); po stand for
1. A.level of income of the consumer
2. B.price of x
3. C.price of other commodities
4. D.production function of x
5. E.price index
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Answer: C price of other commodities
38.
What is meant by utility?
1. A.amount of money derived by a manufacture
2. B.A number of things a consumer will enjoy at a time
3. C.amount of satisfaction derive from the consumption of a commodity at a particular time
4. D.amount of satisfaction giving to a producer
5. E.total profit producers will get at a particular time
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Answer: C amount of satisfaction derive from the consumption of a commodity at a particular time
39.
Which of the following is a characteristic of private enterprises?
1. A.business risks are borne by the buyers
2. B.capital is provided by the public
3. C.control and management of the business is in the hands of customer
4. D.the business is owned and run by government
5. E.The main aim of setting up the business is to maximize profit
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Answer: E The main aim of setting up the business is to maximize profit
40.
Which of the following is a major export crop in Nigeria?
1. A.cocoa
2. B.coffee
3. C.copper
4. D.kola nut
5. E.soy beans
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Answer: A cocoa
41.
Which of the following is a motive for holding money?
1. A.celebration
2. B.daily purchases
3. C.election campaign
4. D.payment of taxes
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Answer: B daily purchases
42.
Which of the following is NOT a cause of inflation?
1. A.excessive bank lending
2. B.excessive deficit financing
3. C.increase in domestics productivity
4. D.increase in wages and salaries of workers
5. E.increase in government expenditure
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Answer: C increase in domestics productivity
43.
Which of the following is NOT a component of agriculture?
1. A.crop farming
2. B.drilling
3. C.fishing
4. D.forestry
5. E.livestock farming
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Answer: B drilling
44.
Which of the following is NOT a factor determining supply?
1. A.cost of production
2. B.climatic condition or weather
3. C.income of the producers
4. D.number of producers
5. E.technological development
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Answer: C income of the producers
45.
Which of the following is NOT a function of taxation?
1. A.make few people rich in the country
2. B.raise revenue for the government
3. C.redistribution of income
4. D.reduces production and consumption of harmful goods
5. E.used as anti-inflationary device
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Answer: D reduces production and consumption of harmful goods
46.
Which of the following is NOT a reason for the absence of an industry in the rural areas?
1. A.Absence of financial institution
2. B.restricted market
3. C.inadequate power and water supply
4. D.inadequate transportation
5. E.presence of external economies
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Answer: E presence of external economies
47.
Which of the following is NOT a sources of national income statistics?
1. A.Foreign trade figure
2. B.pay-rolls of various establishment
3. C.income tax return
4. D.Economic surveys
5. E.level of infrastructural development
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Answer: E level of infrastructural development
48.
Which of the following is NOT an internal dis-economy of scales?
1. A.Easy management and less administrative cost
2. B.large firm suffers from bureaucracy or red tapism
3. C.less personal relationship between management and employees
4. D.Motivation may be lacking in the large firm
5. E.slow response to changes
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Answer: A Easy management and less administrative cost
49.
Which of the following is true of a perfect market situation?
1. A.price = AR=MC=AC
2. B.price = DD = MC = AC
3. C.price = AC = MC = AR
4. D.price = AR = MR = DD
5. E.price = MR but MR < AR
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Answer: A price = AR=MC=AC
50.
Which of these is NOT a basic economic problem of society?
1. A.efficiency of resource use
2. B.for whom to produces
3. C.how to produce
4. D.scale of production
5. E.what to produce
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Answer: D scale of production

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