Economics past questions: NECO SSCE 2007

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

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

1.
A change in National Income brought about by a given change in investment Is
1. A.APC
2. B.APS
3. C.MPC
4. D.MPS
5. E.The multiplier
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Answer: E The multiplier
2.
A comprehensive statement of Income and expenditure on international accounts for one financial year is called
1. A.balance of payments
2. B.balance of trade
3. C.budget
4. D.Index of trade
5. E.terms of trade
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Answer: A balance of payments
3.
A deliberate government policy to exclude foreign participation in certain economic activity is known as
1. A.commercialization
2. B.indigenization
3. C.liberalization
4. D.localization
5. E.privatization
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Answer: B indigenization
4.
A tax system in which the income earner pays a fixed percentage of his income annually is known as …………. tax.
1. A.direct
2. B.indirect
3. C.progressive
4. D.proportional
5. E.regressive
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Answer: D proportional
5.
A tax system in which the rich pay a higher percentage of income as tax than the poor is known as
1. A.capital gains tax
2. B.progressive taxation
3. C.proportional taxation
4. D.regressive taxation
5. E.sales tax
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Answer: B progressive taxation
6.
Agricultural production in Nigeria could be improved through
1. A.control of plant diseases
2. B.Land Fragmentation
3. C.Payment of excise duty
4. D.the introduction of low yielding crops
5. E.the use of traditional implements
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Answer: A control of plant diseases
7.
At the point where total utility begins to decline MU is
1. A.constant
2. B.decreasing
3. C.increasing
4. D.negative
5. E.zero
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Answer: D negative
8.
Branding and packaging of goods Is the function of
1. A.brokers
2. B.consumers
3. C.manufactures
4. D.retailers
5. E.wholesalers
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Answer: C manufactures
9.
Economics is regarded as a social science because It
1. A.helps people to be acceptable In the society
2. B.Is associated with social dubs
3. C.is used by sociologist
4. D.studies human behavior
5. E.uses controlled experiment
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Answer: D studies human behavior
10.
Find the arithmetic mean of the following set of scores 12, 4, 2, 8, and 14
1. A.8
2. B.10
3. C.12
4. D.14
5. E.30
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Answer: A 8
11.
Goods that are useful, scarce and can command price are called …………. goods.
1. A.capital
2. B.consumer
3. C.economic
4. D.free
5. E.scarce
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Answer: C economic
12.
If the Income flow of a country exceeds the expenditure flow in international transactions, the balance of payment is
1. A.balanced
2. B.deficit
3. C.restricted
4. D.surplus
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Answer: D surplus
13.
If the price Index of export is 140% and import is 200%, what is
1. A.60
2. B.70
3. C.100
4. D.140
5. E.280
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Answer: B 70
14.
If total Income is N15m and total consumption Is N3m. then the average propensity to consume is
1. A.0.2
2. B.0.6
3. C.0.7
4. D.5
5. E.10
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Answer: A 0.2
15.
In a solo proprietorship, decisions are made by the
1. A.board of directors
2. B.government
3. C.management
4. D.owner
5. E.shareholders
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Answer: D owner
16.
Plantation farming can best be defined as cultivation of
1. A.crops using hoes and cutlasses for farming
2. B.food crops for personal consumption
3. C.food for use by the family
4. D.large scale farms of cash crops
5. E.livestock for commercial purposes
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Answer: D large scale farms of cash crops
17.
Population density refers to
1. A.total population
2. B.the total population divided by the total area of land
3. C.the total area of land divided by the total population
4. D.the population ratio of male and female
5. E.optimum Population level
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Answer: B the total population divided by the total area of land
18.
Standard deviation can be determined by the square root of the
1. A.mean
2. B.mean deviation
3. C.mode
4. D.variance
5. E.variance divided by the mean
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Answer: D variance
19.
The African Development Bank was set up in 1964 and has its headquarters in
1. A.Burkina Faso
2. B.Ivory Coast
3. C.Liberia
4. D.Niger Republic
5. E.Senegal
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Answer: B Ivory Coast
20.
The creation of physical and concrete goods that can be seen and handled Is
1. A.diminishing returns
2. B.division of labour
3. C.Industrialization
4. D.production
5. E.specialization
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Answer: D production
21.
The difference between bar charts and histograms is that the former
1. A.are difference between bars adjoined to each other while the latter are separate bars divided Into sections
2. B.are line graphs while the latter are rectangular bars
3. C.are separate bars divided Into sections while the latter are line graphs
4. D.has bars adjoined to each other while the latter has separate bars
5. E.has bars separate from each other while the latter has bars adjoined to each other
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Answer: E has bars separate from each other while the latter has bars adjoined to each other
22.
The difference between Gross National Income and Gross Domestic Product is known as
1. A.capital consumption
2. B.debt repayments
3. C.Investment abroad
4. D.net income from abroad
5. E.net saving
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Answer: D net income from abroad
23.
The equation MV PT is known as
1. A.demand and supply equation
2. B.equilibrium equation
3. C.equation of exchange
4. D.money supply equation
5. E.price index numbers
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Answer: D money supply equation
24.
The first oil refinery in Nigeria was established at
1. A.Alesa Eleme
2. B.Araromi
3. C.Kaduna
4. D.Oloibiri
5. E.Warri
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Answer: D Oloibiri
25.
The following are advantages of standard deviation EXCEPT that it
1. A.has greater practical utility In sampling
2. B.is a good measure of dispersion since all the values are used in its calculation
3. C.is important and useful in the analysis of T- Test
4. D.is not a sound mathematical index
5. E.is the most popular measure of dispersion in distribution
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Answer: A has greater practical utility In sampling
26.
The following are bye-products of crude oil EXCEPT
1. A.bitumen
2. B.kerosene
3. C.paraffin wax
4. D.perfume
5. E.petrol
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Answer: D perfume
27.
The following are the objectives of economic planning EXCEPT
1. A.achieving balanced growth
2. B.diversification of the economy
3. C.creation of more employment opportunities
4. D.equitable allocation of resources
5. E.rapid population growth
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Answer: E rapid population growth
28.
The following are types of monopolies EXCEPT
1. A.cartels
2. B.holding companies
3. C.syndicates
4. D.thrifts
5. E.trusts
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Answer: D thrifts
29.
The following countries are members of ECOWAS EXCEPT
1. A.Angola
2. B.Ghana
3. C.Ivory coast
4. D.Liberia
5. E.Niger Republic
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Answer: A Angola
30.
The following measures used to check deflation EXCEPT
1. A.deficit financing
2. B.improving distribution system
3. C.increasing wages and salaries
4. D.raising the bank rate
5. E.reducing taxation
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Answer: D raising the bank rate
31.
The following methods are used in calculation of National Income EXCEPT
1. A.depreciation
2. B.Expenditure
3. C.Income
4. D.Output
5. E.value added
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Answer: A depreciation
32.
The function muv/muz = py/pz represents
1. A.consumer's average utility level
2. B.diminishing marginal utility
3. C.increasing marginal utility
4. D.marginal theory of price
5. E.utility maximization
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Answer: E utility maximization
33.
The Industrial strategy of producing locally those goods that could have been imported is known as
1. A.balance growth
2. B.export promotion
3. C.import substitution
4. D.Industrialization
5. E.urbanization
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Answer: C import substitution
34.
The solution to problem of how to produce in a capitalist economy is solved by
1. A.combining aid labour means of production
2. B.the producers involves
3. C.using capital Intensive method of production
4. D.using labour intensive method of production
5. E.using the method of production with the least cost
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Answer: B the producers involves
35.
The theory of absolute advantage was propounded by
1. A.Adam Smith
2. B.David Ricardo
3. C.Irving Fisher
4. D.JB Kynes
5. E.Thomas Malthus
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Answer: A Adam Smith
36.
Unemployment resulting from physical or mental deficiency is known as……………unemployment.
1. A.cyclical
2. B.disguised
3. C.Frictional
4. D.residual
5. E.Voluntary
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Answer: D residual
37.
Which of the following goods are NOT examples of joint supply?
1. A.Beef and hides
2. B.fuel and kerosene
3. C.Palm oil and kernel
4. D.Tea and coffee
5. E.Wool and Mutton
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Answer: D Tea and coffee
38.
Which of the following is a condition necessary
1. A.Few sellers and buyers
2. B.Free entry and exist
3. C.Homogeneous goods
4. D.Lack of preferential treatment
5. E.Many callers and buyers
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Answer: A Few sellers and buyers
39.
Which of the following is a disadvantage of sole proprietorship?
1. A.Does not enjoy limited liability
2. B.Decisions are easily made and implemented
3. C.Easy to set up
4. D.Enjoys secrecy
5. E.Maintains dose relationship with workers and customers
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Answer: A Does not enjoy limited liability
40.
Which of the following is an advantage of free enterprise economy?
1. A.Allocates resources better
2. B.Avoids extreme Inequality of income
3. C.Full employment
4. D.It is very competent In providing vital social services
5. E.No need of employing a host of officials to allocate resources
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Answer: D It is very competent In providing vital social services
41.
Which of the following is NOT a contribution of agriculture to industrial development?
1. A.provision of food for the industrial sector
2. B.Provision of funds for industrial development
3. C.Provision of raw materials
4. D.Supply of labour to the industrial sector
5. E.supply of machinery to the industrial sector
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Answer: E supply of machinery to the industrial sector
42.
Which of the following is NOT a feature of land?
1. A.Free gift of nature
2. B.Fixed in supply
3. C.Geographically immobile
4. D.Returns on land is wages
5. E.Subject to law of diminishing returns
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Answer: D Returns on land is wages
43.
Which of the following Is NOT a function of Merchant Bank
1. A.Helps public companies to issue new shares
2. B.Provision of medium and long-term loans
3. C.They accept bills of exchange
4. D.They guarantee the buying of shares
5. E.They implement government monetary policies
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Answer: D They guarantee the buying of shares
44.
Which of the following is NOT an advantage of localization of industry?
1. A.Availability of social amenities
2. B.Development of subsidiary industries
3. C.Highly organized markets
4. D.supply of skilled labour
5. E.traffic De-congestion
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Answer: E traffic De-congestion
45.
which of the following measures can be used to control inflation?
1. A.decrease in bank rate
2. B.Decrease in taxation
3. C.deficit budget
4. D.Export drive
5. E.Increase in government expenditure
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Answer: D Export drive
46.
Which of these is NOT a bottle neck In the distribution of goods In Nigeria?
1. A.Adequate transportation network
2. B.Inadequate credit facilities
3. C.Inadequate storage facilities
4. D.poor processing and packaging
5. E.Unnecessary hoarding
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Answer: A Adequate transportation network

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