Economics past questions: NECO SSCE 2005

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

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

1.
A business formation with a minimum of two and maximum of twenty persons is called
1. A.cooperative society
2. B.joint stock company
3. C.one man business
4. D.partnership
5. E.public corporation
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Answer: D partnership
2.
A major characteristics of a firm operating at a long-run equilibrium position is that
1. A.all costs can be varied
2. B.average variable cost is fixed
3. C.fixed cost can not be changed
4. D.marginal cost is fixed
5. E.only variable cost changes
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Answer: A all costs can be varied
3.
An economy in which decision of what to produce is taken partly by private individuals and state is referred to as Economy.
1. A.capitalist
2. B.communist
3. C.mixed
4. D.socialist
5. E.welfarist
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Answer: C mixed
4.
An industry engaged in the extraction of raw materials and its conversion into semi-finished goods is called industry.
1. A.construction
2. B.conversion
3. C.manufacturing
4. D.mining
5. E.processing
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Answer: C manufacturing
5.
An industry operating in a perfect competitive market situation will maximum profit when
1. A.DD = SS
2. B.DD < SS
3. C.MC > AC
4. D.MC < AR
5. E.MC = MR
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Answer: E MC = MR
6.
At the equilibrium price,
1. A.demand is greater than supply
2. B.demand equates supply
3. C.demand is less than supply
4. D.price is equal to demand only
5. E.price is equal to supply only
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Answer: B demand equates supply
7.
Economic problem arises as a result of
1. A.choice
2. B.money cost
3. C.opportunity cost
4. D.scarcity
5. E.scale of preference
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Answer: D scarcity
8.
ECOWAS secretariat is located in
1. A.Abuja, Nigeria
2. B.Accra, Ghana
3. C.Conakry, Guinea
4. D.Freetown, Sierra Leone
5. E.Monrovia, Liberia V
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Answer: A Abuja, Nigeria
9.
If the population of a school is 600 and 60% are In JSS, how many students are in SSS?
1. A.204
2. B.224
3. C.240
4. D.244
5. E.248
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Answer: C 240
10.
If the standard deviation of a set of numbers is 3.6, what is the variance?
1. A.12.49
2. B.12.69
3. C.12.9
4. D.12.96
5. E.12.98
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Answer: D 12.96
11.
If two bags of rice were sold for N1,250 a mouth ago and two weeks later, the same amount was used to procure one bag. This simply means that the value of money is
1. A.constant
2. B.decreasing
3. C.fluctuating
4. D.increasing
5. E.proportional
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Answer: B decreasing
12.
In the equation Q = a - bp + e; Q and P are .... Variables respectively.
1. A.constant and dependent
2. B.dependent and independent
3. C.error term and independent
4. D.independent and constant
5. E.independent and dependent
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Answer: E independent and dependent
13.
Persistent fail In the general price level Is known as
1. A.deflation
2. B.devaluation
3. C.general price Increase
4. D.inflation
5. E.price index
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Answer: A deflation
14.
Production is said to be complete when goods and services gets to the
1. A.consumers
2. B.distributors
3. C.retailers
4. D.warehouses
5. E.wholesalers
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Answer: A consumers
15.
Range is NOT the best method of measuring dispersion because it considers only the
1. A.first number
2. B.first two numbers
3. C.frequently occurred number
4. D.middle number
5. E.two extreme number
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Answer: E two extreme number
16.
Stock exchange market deals with
1. A.exchange of commodities
2. B.exchange of stock fish for stock
3. C.exchange of treasury bills
4. D.sales of foreign exchange
5. E.sales of second hand securities
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Answer: E sales of second hand securities
17.
The 2nd National Development plan in Nigeria was between
1. A.1962 — 1968
2. B.1970 — 1974
3. C.1975 — 1980
4. D.1980 — 1985
5. E.1985 — 1990
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Answer: B 1970 — 1974
18.
The demand for factors of production is said to be
1. A.competitive
2. B.complementary
3. C.composite
4. D.derived
5. E.joint
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Answer: D derived
19.
The following are problems of development planning in Nigeria EXCEPT
1. A.death of skilled manpower
2. B.inadequate capital
3. C.inadequate statistical data
4. D.poor implementation of economic planning
5. E.under-population
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Answer: E under-population
20.
The following are rewards for factors of production EXCEPT
1. A.interest
2. B.profit
3. C.rent
4. D.subsidy
5. E.wages
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Answer: D subsidy
21.
The following are the objectives of agricultural policies in Nigeria EXCEPT
1. A.provision of food
2. B.provision of agricultural raw materials to industrial sectors
3. C.increasing prices of agricultural Inputs
4. D.creation of rural employment
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Answer: C increasing prices of agricultural Inputs
22.
The following can be used to improve a country's balance of payment EXCEPT
1. A.anti-dumping policies
2. B.decreasing taxation on personal income
3. C.granting subsidies to export producers
4. D.increasing import duties
5. E.removing export duties
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Answer: B decreasing taxation on personal income
23.
The following determine the level of consumption EXCEPT
1. A.expectation of price changes
2. B.level of income
3. C.savings
4. D.the rate of taxes paid
5. E.the political climate
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Answer: E the political climate
24.
The following will occur when maximum price is fixed below the free market price EXCEPT that
1. A.black market will be encouraged
2. B.excess demand will occur
3. C.excess supply will occur
4. D.rationing of commodities will occur
5. E.scarcity of goods will occur
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Answer: C excess supply will occur
25.
The formular (N + 1)/2 is used to determine the
1. A.mean
2. B.median
3. C.mode
4. D.standard deviation
5. E.mean deviation
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Answer: B median
26.
The problem of "how to produce" in any economy is solved by
1. A.adopting the least cost method of production
2. B.combining capital and labour intensive methods of production
3. C.employing the services of a manager
4. D.using capital intensive method of production
5. E.using labour intensive method of production
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Answer: B combining capital and labour intensive methods of production
27.
The recent revolution of Cassava from ordinary food crop to export crop will lead to
1. A.decrease in price of cassava flour
2. B.decrease In production of cassava
3. C.decrease In production of local starch
4. D.increase In production of other crops
5. E.increase in the prices of cassava products
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Answer: E increase in the prices of cassava products
28.
The satisfaction derived from Die consumption of a commodity is referred o as
1. A.consumption
2. B.demand
3. C.production
4. D.utility
5. E.utilization
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Answer: D utility
29.
The system of farming which involves the use of a large hectare of land planted with economic crops is known as
1. A.cooperative farming
2. B.mechanized farming
3. C.peasant farming
4. D.plantation farming
5. E.tree planting
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Answer: D plantation farming
30.
The trade-off between two commodities along the Production Possibility Curve (PPC) shows
1. A.opportunity cost principle
2. B.scarcity principle
3. C.transferable output
4. D.unattainable combination
5. E.under utilization of resources
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Answer: D unattainable combination
31.
The use of tax and expenditure policy to regulate the economy is known as
1. A.deregulation
2. B.fiscal policy
3. C.monetary policy
4. D.physical measures
5. E.structural adjustment
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Answer: B fiscal policy
32.
The variance of a given set of numbers is defined as the
1. A.absolute value of the standard deviation
2. B.square of the standard deviation
3. C.square root of the standard deviation
4. D.square of the mean deviation
5. E.square root of the mean deviation
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Answer: B square of the standard deviation
33.
Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds
1. A.as much to TR as to TC
2. B.less to TR as to TC
3. C.less to TC than to TR
4. D.more to TC than to TR
5. E.more to TR than to T
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Answer: E more to TR than to T
34.
When an increase in the price of a commodity lead to a fall In the demand for aNOTher, the demand for the two commodities are said to be
1. A.abnormal
2. B.competitive
3. C.composite
4. D.derived
5. E.joint
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Answer: E joint
35.
When the total product starts falling, then the marginal product is
1. A.constant
2. B.increasing
3. C.maximum
4. D.negative
5. E.zero
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Answer: D negative
36.
Which of the following is a disadvantage of localization of industries?
1. A.Aiding cooperation among firms
2. B.Creating structural unemployment
3. C.Encouraging subsidiary industries
4. D.Encouraging the growth of skilled labour
5. E.Reducing cost of production
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Answer: B Creating structural unemployment
37.
Which of the following is NOT a function of marketing boards in Nigeria?
1. A.Fixing of prices for farm produce
2. B.Grading of farm produce
3. C.Importation of farm produce
4. D.Marketing of farm produce
5. E.Price stabilization
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Answer: C Importation of farm produce
38.
Which of the following is NOT a function of the IMF?
1. A.assisting member countries in printing and issuing their currency
2. B.Exchange rate stabilization
3. C.Promoting international monetary cooperation
4. D.Providing financial aid to members experiencing balance of payment difficulties
5. E.Serving as a clearing house f member countries
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Answer: A assisting member countries in printing and issuing their currency
39.
Which of the following is NOT a major role of OPEC in production, and marketing of petroleum?
1. A.Coordinating and unifying petroleum policies of member countries
2. B.Ensuring efficient and regular supply of oil to the two market
3. C.Raising the revenue of member countries from oil through price increase
4. D.Refining of petroleum products in member countries
5. E.Stabilizing oil prices putting a production ceiling
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Answer: D Refining of petroleum products in member countries
40.
Which of the following is NOT a positive contribution a petroleum to Nigeria economy?
1. A.Development of bat infrastructures
2. B.Increase in National income
3. C.Major employer of labour
4. D.Major foreign exchange earned
5. E.Turning the nation to mono-product economy
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Answer: E Turning the nation to mono-product economy
41.
Which of the following is NOT an objective of Economic planning?
1. A.Achieving economic self reliance
2. B.Achieving economic growth
3. C.Creating employment
4. D.Equitable allocation of resources
5. E.Widening the income gap
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Answer: E Widening the income gap
42.
Which of the following is NOT associated with minimum price legislation?
1. A.Black market
2. B.Excess demand
3. C.Excess supply
4. D.Unattainable equilibrium
5. E.Unemployment
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Answer: B Excess demand
43.
Which of the following is NOT included in-measuring the National income through the income approach?
1. A.Allowance given to an aged mother by a civil servant
2. B.Income earned by a bricklayer
3. C.Profit earned by Nigerian bottling company plc
4. D.profit earned by NITEL plc
5. E.Salary earned by a doctor
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Answer: A Allowance given to an aged mother by a civil servant
44.
Which of the following is the correct order in the chain of distribution?
1. A.Consumer —> Distributor → Retailer → Producer
2. B.Producer → Consumer → Retailer → Wholesaler
3. C.Producer → Wholesaler → Retailer → Consumer
4. D.Retailer → Consumer → Producer → Wholesaler
5. E.Wholesaler → Retailer → Producer → Consume
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Answer: C Producer → Wholesaler → Retailer → Consumer
45.
Which of the following will NOT bring about an increase in Labour force?
1. A.Better medical services
2. B.Decrease in death rate
3. C.Emigration
4. D.Immigration
5. E.Increase in birth rate
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Answer: C Emigration

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