Economics past questions: NECO SSCE 2009

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

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

1.
A firm is said to be a public joint-stock company when it
1. A.has unlimited liability
2. B.is administered by the public
3. C.is owned by the government
4. D.operates as a public corporation
5. E.sells its shares to members of the public
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Answer: E sells its shares to members of the public
2.
A major feature of capitalism is
1. A.collective ownership of means of production
2. B.competition
3. C.equality or egalitarianism
4. D.redistribution of income
5. E.socialization and welfare
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Answer: B competition
3.
A monopolist is a
1. A.duopolist
2. B.group of producers of related goods
3. C.partnership business that produces a commodity with high demand
4. D.single producer or seller of a commodity at cheap rate
5. E.single producer or seller of a commodity that has no close substitute
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Answer: E single producer or seller of a commodity that has no close substitute
4.
A production possibility curve shows the
1. A.resources used to produce a particular commodity
2. B.possible combinations of two commodities
3. C.rate of inflation
4. D.rate of unemployment in the country
5. E.tabular illustration of production possibilities
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Answer: B possible combinations of two commodities
5.
Average total cost can be expressed as
1. A.average fixed cost plus average variable cost
2. B.change in total cost divided by change in output
3. C.total cost divided by total output
4. D.total fixed cost plus total variable cost
5. E.total variable cost divided by total output
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Answer: C total cost divided by total output
6.
Data presented in tables are usually arranged in ………… and …………
1. A.charts, tables
2. B., graphs, rows
3. C.pictograms, columns
4. D.rows, columns
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Answer: D rows, columns
7.
Disguised unemployment is the same thing as
1. A.residual unemployment
2. B.seasonal unemployment
3. C.structural unemployment
4. D.under-employment
5. E.voluntary unemployment
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Answer: D under-employment
8.
Economic growth can be defined as
1. A.a rapid and sustained rise in real output per head
2. B.A rise in real income per head
3. C.an increase in technology only
4. D.insufficiency in food production
5. E.over population in a country
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Answer: B A rise in real income per head
9.
Entrepreneur is associated more with
1. A.capital management
2. B.production of beverage
3. C.profit making
4. D.profit sharing
5. E.risk bearing
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Answer: E risk bearing
10.
In a given set of data, if the variance is 25, what is the standard deviation?
1. A.45
2. B.5
3. C.55
4. D.10
5. E.12
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Answer: B 5
11.
Inflation is a …………….
1. A.general increase in the price of a single product
2. B.period of economic recession
3. C.period of hunger
4. D.period of excessive money
5. E.persistent rise in the general price level
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Answer: E persistent rise in the general price level
12.
Labour force simply means the
1. A.demand and supply of labour
2. B.efficiency of labour
3. C.job seekers
4. D.unemployable population
5. E.working population
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Answer: E working population
13.
Oil was first discovered in commercial quantity in ……….. State.
1. A.Amasoma, Bayelsa
2. B.Bonny, Rivers
3. C.Oloibiri, Rivers
4. D.Igbokoda, Ondo
5. E.Warri, Delta
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Answer: C Oloibiri, Rivers
14.
One of the positive contributions of the petroleum industry to Nigeria's economic development is that it
1. A.creates ecological problems
2. B.creates political unrest
3. C.creates uncertainties in government revenues
4. D.is a major foreign exchange earner
5. E.suppresses agricultural development
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Answer: D is a major foreign exchange earner
15.
One of the roles of industrialization in economic development of Nigeria is
1. A.employment generation
2. B.environmental pollution
3. C.target of enemy's attack
4. D.unemployment
5. E.uneven development
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Answer: A employment generation
16.
Price elasticity of supply measures the responsiveness of quantity supplied to
1. A.a change in the demand for the product V
2. B.a change in the price of the commodity
3. C.changes in consumers
4. D.changes in prices of other commodities
5. E.changes in suppliers income
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Answer: B a change in the price of the commodity
17.
Production is best defined in economics as
1. A.creation of utility yielding goods and services
2. B.distribution of goods and services
3. C.manufacturing of goods by small factories
4. D.provision of basic amenities
5. E.rendering of services only
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Answer: A creation of utility yielding goods and services
18.
Taxes levied on locally manufactured goods are called
1. A.custom duties
2. B.excise duties
3. C.purchase tax
4. D.sales tax
5. E.VAT
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Answer: B excise duties
19.
The additional satisfaction derived from the consumption of one more unit of a good is called
1. A.marginal cost
2. B.marginal product
3. C.marginal revenue
4. D.marginal utility
5. E.total Utility
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Answer: D marginal utility
20.
The amount of satisfaction per unit of the commodity consumed is called
1. A.average cost
2. B.average utility
3. C.marginal cost
4. D.marginal utility
5. E.total utility
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Answer: B average utility
21.
The concentration of firms in one area is referred to as of ……………. industries.
1. A.location
2. B.localization
3. C.multiplication
4. D.proliferation
5. E.pluralization
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Answer: B localization
22.
The concept of choice in Economics refers to
1. A.a decision between one thing and another
2. B.ranking of wants in an ascending order
3. C.selection of most pressing wants out of a range of alternatives
4. D.ranking of wants on a table of preference
5. E.separating defective commodities from non-defective ones
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Answer: C selection of most pressing wants out of a range of alternatives
23.
The correct relationship between income (Y), consumption (C) and savings (S) is
1. A.C = Y + S
2. B.S = Y + C
3. C.S = Y + S
4. D.Y = C + S
5. E.Y = C – S
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Answer: D Y = C + S
24.
The demand curve of a perfect competitive market is infinitely elastic indicating that the firm can
1. A.refuse to sell any quantity
2. B.sell any quantity of output at the prevailing price
3. C.sell fixed quantity of output at the prevailing market price
4. D.sell less quantity
5. E.sell more quantity at a higher price
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Answer: B sell any quantity of output at the prevailing price
25.
The demand for salt is …………
1. A.Elastic
2. B.Inelastic
3. C.Unitary elastic
4. D.both a and b
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Answer: B Inelastic
26.
The first National development plan period was from
1. A.1955-1959
2. B.1962-1968
3. C.1965-1970
4. D.1970-1974
5. E.1975-1980
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Answer: B 1962-1968
27.
The following are qualities of money EXCEPT
1. A.acceptability
2. B.divisibility
3. C.homogeneity
4. D.portability
5. E.rationality
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Answer: E rationality
28.
The following are the differences between domestic and international trade EXCEPT
1. A.cultural differences
2. B.currency
3. C.land
4. D.language
5. E.laws
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Answer: C land
29.
The growth of a country's population is affected by
1. A.military might of the country
2. B.number of births per thousand of the population
3. C.number of people willing to be counted
4. D.the amount of money in circulation
5. E.the number of men in the population
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Answer: B number of births per thousand of the population
30.
The International Monetary Fund (IMF) was set up mainly to
1. A.cater for financial needs of developed countries
2. B.create conditions favourable for the growth of world trade
3. C.create favourable balance of payment
4. D.develop domestic trade
5. E.offset foreign debts only
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Answer: B create conditions favourable for the growth of world trade
31.
The mean of the following scores 30, 32, 34, 36, 38, 40 and 42 What is the mean deviation?
1. A.4.21
2. B.3.24
3. C.3.42
4. D.4.54
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Answer: C 3.42
32.
The price and quantity of crude oil and petrol sold to other countries by Nigeria is fixed by the
1. A.ECOWAS
2. B.IMF
3. C.OPEC
4. D.NNPC
5. E.none
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Answer: C OPEC
33.
The process of building up country's capacity to process raw materials for the production of goods is known as
1. A.firm
2. B.industry
3. C.industrialization
4. D.location of industry
5. E.localization
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Answer: C industrialization
34.
The purchasing power of the Naira will fall when
1. A.worker are retrenched
2. B.the colour of the Naira is changed
3. C.the military take over
4. D.there is inflation
5. E.none
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Answer: D there is inflation
35.
The unit for measuring changes in prices and output is called ………………. index
1. A.capital
2. B.expenditure
3. C.income
4. D.money
5. E.price
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Answer: E price
36.
The value of money is affected by
1. A.consumer's income
2. B.effective demand
3. C.effective supply
4. D.equilibrium price
5. E.general price level
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Answer: E general price level
37.
These are the objectives of industrial strategies in Nigeria EXCEPT
1. A.industrial financing
2. B.maximization of local value added
3. C.promotion of export oriented industries
4. D.promotion of import oriented industries
5. E.provision of economic and social infrastructures
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Answer: B maximization of local value added
38.
Through membership of the Economic Community of West African States (ECOWAS) countries have achieved
1. A.a large market for their products
2. B.emancipation of Africa
3. C.full employment of resources
4. D.higher transportation cost of goods within the region
5. E.military superiority over other African countries
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Answer: A a large market for their products
39.
Time deposit is the same thing as
1. A.bank rate
2. B.current account
3. C.demand deposited
4. D.fixed deposit
5. E.saving account
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Answer: D fixed deposit
40.
Using Expenditure Approach to estimate National Income, Y is equal to
1. A.C + l + G + X – M + P - V
2. B.C + l + G + X – M + P
3. C.C + l + G – X + P
4. D.C – 1 + G + X – M + P
5. E.C + l – G + X – M – P
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Answer: D C – 1 + G + X – M + P
41.
When the demand for foreign exchange exceeds its supply, the value of the domestic currency
1. A.appreciates
2. B.depreciates
3. C.expands
4. D.Increases
5. E.inflates
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Answer: B depreciates
42.
When the value of a country's export exceeds her imports, there will be a
1. A.deficit current account
2. B.excess visible imports only
3. C.favorable balance of trade
4. D.favourable capital account
5. E.surplus current account
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Answer: C favorable balance of trade
43.
Which of the following hinder(s) effective distribution of goods in Nigeria?
1. A.Branding and packaging of goods
2. B.Good transportation network
3. C.Large quantity of goods
4. D.numerous middlemen
5. E.Warehousing facilities
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Answer: D numerous middlemen
44.
Which of the following is a determinant of elasticity of supply?
1. A.Consumer's income
2. B.Degree of necessities
3. C.Durability of the product
4. D.Number of uses of the commodity
5. E.Proportion of income spent on the product
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Answer: C Durability of the product
45.
Which of the following is a form of business enterprise?
1. A.Cartel
2. B.Entrepreneurship
3. C.Partnership
4. D.Stock exchange
5. E.Supermarket
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Answer: C Partnership
46.
Which of the following is a function of the central bank?
1. A.Accepting deposits from the public
2. B.Agent of payment for individuals
3. C.Discounting bills of exchange
4. D.Issuing of currency
5. E.Provision of short term housing loans
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Answer: D Issuing of currency
47.
Which of the following is NOT an advantage of tabular presentation of data?
1. A.Enables easy location of required figures
2. B.Helps to calculate derived quantities
3. C.Makes for easy comparison of figures
4. D.Occupies more space than mathematical equation
5. E.Shows whether the figures are increasing or decreasing
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Answer: D Occupies more space than mathematical equation
48.
Which of these factors causes a change in the quantity demanded of a commodity?
1. A.Income
2. B.Population
3. C.Price of other commodities
4. D.Price of the commodity concerned
5. E.Taste and fashion
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Answer: D Price of the commodity concerned

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