Economics past questions: NECO SSCE 2004

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

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

1.
A business organization set up for the mutual benefits of member with similar interest is known as
1. A.cooperative society
2. B.partnership
3. C.private limited company
4. D.public corporation
5. E.public limited company
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Answer: A cooperative society
2.
A development planning which takes a long range view of the economy and covers a period of 10-20 years is regarded as
1. A.comprehensive planning
2. B.indicative planning
3. C.perspective planning
4. D.regional planning
5. E.sectors planning
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Answer: A comprehensive planning
3.
A firm with a total of 54 employees produced 108 tonnes of toilet tissues in 3months. What is the average production per employee?
1. A.0.02 tonnes
2. B.0.2 tonnes
3. C.2 tonnes
4. D.20 tonnes
5. E.200 tonnes
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Answer: C 2 tonnes
4.
A negative effect of the discovery of petroleum on the Nigerian economy is
1. A.conversion of the economy into a mono product type
2. B.development of infrastructures
3. C.encouragement of international recognition
4. D.provision of job opportunities
5. E.rapid industrialization
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Answer: A conversion of the economy into a mono product type
5.
A one-man business is controlled by
1. A.an active partner
2. B.board of trustees
3. C.board of directors
4. D.dormant partner
5. E.the owner
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Answer: E the owner
6.
All the following are the objectives of economic planning EXCEPT to
1. A.reduce the rate of inflation and achieve stable value for the naira
2. B.encourage inflow of public and private capital
3. C.evolve a sequential political transition and enthronement of popular government
4. D.reduce economic dependence on foreign nations
5. E.achieve full employment
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Answer: C evolve a sequential political transition and enthronement of popular government
7.
An inflation which occurs as a result of increase in production cost is known as
1. A.cost-push inflation
2. B.creeping inflation
3. C.demand-pull inflation
4. D.hyper-inflation
5. E.runaway inflation
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Answer: A cost-push inflation
8.
Arrangement of wants in order of importance is brought about by
1. A.excess supply of goods
2. B.interest in doing so
3. C.scarcity of resources
4. D.opportunity cost
5. E.limited wants
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Answer: C scarcity of resources
9.
Demand for labour depends on the following factors EXCEPT
1. A.number of industries/enterprises
2. B.nature of industries/business enterprises
3. C.price of labour
4. D.demand for labour output and prices
5. E.the period of training
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Answer: E the period of training
10.
Excise duties are taxes levied on
1. A.goods coming into the country
2. B.goods going out of the country
3. C.industrial incomes
4. D.locally manufactured goods
5. E.selected consumer durable
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Answer: D locally manufactured goods
11.
In a socialist economic system, decisions relating to the fundamental economic problems are taken by
1. A.academicians
2. B.government
3. C.individuals
4. D.judiciary
5. E.manufacturers
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Answer: B government
12.
In Economics, want means…………aspiration
1. A.endless
2. B.qualitative
3. C.quantifiable
4. D.satisfied
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Answer: A endless
13.
In international trade, when payments of a country are higher than the receipts, then the balance of payment is
1. A.favourable
2. B.in equilibrium
3. C.perfect
4. D.unfavourable
5. E.uniform
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Answer: D unfavourable
14.
Individuals who buy new shares in anticipation of reselling at higher prices in the stock exchange market are called
1. A.bears
2. B.brokers
3. C.bulls
4. D.jobbers
5. E.stags
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Answer: C bulls
15.
Points outside the production possibility curves shows
1. A.unequal allocation of resources among factors
2. B.capital production level
3. C.under utilization of resources
4. D.unattainable production level
5. E.effective consummation of resources
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Answer: D unattainable production level
16.
The amount of money required for the day-to-day running of a business is known as
1. A.economics capital
2. B.fixed capital
3. C.paid- up capital
4. D.reserve capital
5. E.working capital
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Answer: E working capital
17.
The assumptions of the principles of comparative cost advantage is based on I. Absence of Trade Restrictions II. No transport costs III. Constant technology
1. A.II & III only
2. B.I & II only
3. C.I, II & III only
4. D.II only
5. E.III only
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Answer: B I & II only
18.
The basic economics problem of what to produce arises as a result of
1. A.competing demands for scarce resources
2. B.excessive supply
3. C.the availability of too many experts
4. D.the failure of the price system
5. E.the reduction of poverty
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Answer: A competing demands for scarce resources
19.
The decision of whether to use labour or capital intensive techniques in production process is a problem of
1. A.for whom to produce
2. B.how to produce
3. C.resource allocation
4. D.what to produce
5. E.when to produce
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Answer: B how to produce
20.
The desire to hold cash balances in order to meet expenditures which arises due to unforeseen circumstances is
1. A.motive
2. B.aim
3. C.determination
4. D.self discipline
5. E.none of the above
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Answer: A motive
21.
The excess profit made by a firm in a competitive market situation in the short-term is known as
1. A.break even
2. B.marginal profit
3. C.net profit
4. D.normal profit
5. E.super normal profit
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Answer: E super normal profit
22.
The following are the main problems of distribution of essential commodities in Nigeria EXCEPT
1. A.excessive demand
2. B.hoarding of goods
3. C.long chain of distribution
4. D.poor storage facilities
5. E.poor transportation network
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Answer: A excessive demand
23.
The indices used to measure the cost of living is
1. A.consumption expenditure
2. B.national income
3. C.per capital income
4. D.price index
5. E.savings and investment
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Answer: D price index
24.
The introduction of money into the economy has helped to resolve the following problems EXCEPT
1. A.accessibility of needs
2. B.availability of goods
3. C.coincidence of wants
4. D.making deferred payments
5. E.measure and store of value
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Answer: A accessibility of needs
25.
The main differences between money market and capital market is that money markets
1. A.acts as advisers to investor while capital markets teleguides
2. B.are owned by individuals, while capital markets are owned by government
3. C.accepts collateral, while capital markets does not accept such
4. D.accepts funds while capital markets disburse fun to investors
5. E.provide short term loans, while capital markets provide long-term loans
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Answer: E provide short term loans, while capital markets provide long-term loans
26.
The main industrial cities in Nigeria are
1. A.Ikeja, Kano, Onitsha and Port-Harcourt
2. B.Kaduna, Dutse, Ogbomoso a Calabar
3. C.Kano, Ilesa, Vadeikya and Afikpo
4. D.Maiduguri, Ikote Ekiti, Moniya and Akungba
5. E.Mokwa, Ijebu-ode, Warri and Gummel
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Answer: A Ikeja, Kano, Onitsha and Port-Harcourt
27.
The most generally accepted definition of Economics was given by
1. A.Adam Smith
2. B.David Ricardo
3. C.Lord Robinson
4. D.Thomas Mathus
5. E.Sam Aluko
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Answer: C Lord Robinson
28.
The types of unemployment that evolved the use of machines to replaces human labour is known as
1. A.cyclical unemployment
2. B.frictional unemployment
3. C.seasonal unemployment
4. D.structural unemployment
5. E.technological unemployment
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Answer: B frictional unemployment
29.
The unit of satisfaction dived from the consumption of an additional unit of a commodity is known as
1. A.average utility
2. B.marginal cost
3. C.marginal product
4. D.marginal utility
5. E.total utility
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Answer: D marginal utility
30.
To an individual, the term cost will include expenditure on the following EXCEPT
1. A.clothing
2. B.Entertainment
3. C.housing
4. D.payment of school fees
5. E.settling national debts
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Answer: E settling national debts
31.
When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is
1. A.competitive demand
2. B.complementary demand
3. C.composite demand
4. D.independent demand
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Answer: B complementary demand
32.
When Elasticity of Demand is greater than one, the demand is
1. A.perfectly elastic
2. B.unitary elastic
3. C.zero elastic
4. D.inelastic
5. E.elastic
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Answer: E elastic
33.
When total utility is at maximum, then marginal utility is
1. A.decreasing
2. B.increasing
3. C.maximum
4. D.negative
5. E.zero
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Answer: E zero
34.
Which of the following factors will NOT affect supply of maize in Nigeria?
1. A.Extension services to farmers
2. B.Improve technology
3. C.Price of maize
4. D.Quantity of wheat produced
5. E.Weather and climatic condition
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Answer: D Quantity of wheat produced
35.
Which of the following is NOT a factor to be considered in siting an industry in a particular area?
1. A.access to raw material
2. B.availability of recreational facilities
3. C.market
4. D.sources of power
5. E.transport facilities
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Answer: B availability of recreational facilities
36.
Which of the following is NOT a function of the wholesaler in the distributive channel?
1. A.Bulk breaking
2. B.Direct contact with end users
3. C.Feedback information to manufacturers
4. D.Public relations and advertising of products
5. E.Storage facilities for finished products
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Answer: B Direct contact with end users
37.
Which of the following is NOT a problem of population census in Nigeria?
1. A.inadequate transportation
2. B.High birth rate
3. C.High cost
4. D.Mass illiteracy
5. E.Political interest
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Answer: E Political interest
38.
Which of the following is true about average cost?
1. A.Fixed cost/quantity
2. B.Marginal + Fixed cost
3. C.Quantity × Fixed cost
4. D.Total cost/quantity
5. E.Total cost - fixed cost Quantity
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Answer: D Total cost/quantity
39.
Which of the following will NOT be a barrier to international trade?
1. A.Communication hindrances
2. B.Easy conversion of currencies
3. C.Geographical locations
4. D.Ideological differences
5. E.Imposition of duties and quotas
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Answer: B Easy conversion of currencies

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