All 60 questions from the National Examinations Council (NECO) Economics 2007 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
Advertisement
Human wants are insatiable because
Human wants are insatiable primarily because resources are limited (scarce) relative to unlimited wants; the source key's stated letter (E, 'resources are unlimited') appears to conflict with this standard economic reasoning.
Real cost in Economics is same as _____ cost.
Real cost in economics refers to opportunity cost - the value of the next best alternative foregone when making a choice.
Pie chart: Cocoa 250 (90°), Yam 250 (90°), Maize 500 (180°). What is the percentage of maize produced?
Maize occupies 180° out of 360°: (180/360) x 100% = 50%.
Which of the following is a measure of dispersion?
Variance measures how spread out the data points are from the mean; mean, harmonic mean, median and mode are measures of central tendency, not dispersion.
In a capitalist society, the type of ___ is used to allocate resources.
In a capitalist/market economy, the price mechanism determines what goods to produce based on consumer demand and willingness to pay.
Labour as an important factor in production process is recompensed with
Labour receives wages as payment for its contribution to production; other factors receive different payments (land - rent, capital - interest, entrepreneurship - profit).
Land is considered a passive factor in production process because it is
Land is considered passive because it is naturally occurring and doesn't require active human effort to create, unlike active factors like labour and capital.
Consumer's Cooperative Society maximises the welfare of its members through the following except
Consumer cooperatives focus on purchasing, savings, involvement of members, marketing products and reducing prices; cash lending is typically not a primary function of consumer cooperatives.
A partner that neither contributes capital nor takes part in managing of the firm is partner
A nominal partner lends only their name to the partnership without contributing capital or participating in management.
One of the problems of population census in Nigeria is
Nigeria faces challenges in conducting accurate population censuses, with a shortage of trained personnel being a major constraint.
Which of the following is a reason government conduct population census? To
Population data is crucial for government planning and policy formulation, resource allocation, and development strategies.
The ability of labour to increase output without increasing its quantity is
Labour efficiency refers to the ability to produce more output with the same amount of labour input through improved skills, technology, or methods.
Which of the following is a reason for balance of payment deficit?
When government spending exceeds revenue, it can lead to increased imports and reduced exports, causing balance of payments deficits.
The selling of variety of goods from one place to another is a function of
Supermarkets specialise in selling a wide variety of goods from a single location, making them accessible to consumers.
Which of the following is an advantage of middlemen?
While this seems counterintuitive, middlemen can help establish fair market prices by connecting producers and consumers, though they may increase final prices due to their services.
The type of money that is not backed by gold is
Fiat money derives its value from a government decree rather than being backed by physical commodities like gold.
Which of the following is an advantage of a representative money? It
Representative money (like checks, electronic transfers) reduces the need to carry physical currency, reducing the burden of carrying cash.
The system of agriculture concerned with production of food, animal and cash crops for commercial purpose is farming
Mechanised farming utilises machinery and modern techniques for the large-scale commercial production of various crops.
Which of the following statistical tools measure the variability of a given set of distributions?
Range (difference between the highest and lowest values) is a simple measure of variability/dispersion in a dataset.
If 2, 8, 6, 4 and 15 are the scores of students in an Economics examination, what is the mean?
Mean = (2+8+6+4+15)/5 = 35/5 = 7.
Which of the following is not a feature of land?
Land has a fixed supply, is a gift of nature, has mobility (in terms of use), and is subject to diminishing returns. Variability is not a characteristic or feature of land as a factor of production.
The total expenditure on machineries and equipment in a firm in an accountant is cost.
From an accounting perspective, machinery and equipment represent money cost as they're capital investments measured in monetary terms.
A situation where workers stay at the entrance of their office and refuse to work is
Work-to-rule is a form of industrial action where workers perform only the minimum required duties, often involving staying at workplace entrances.
Activities of trade union in an organisation help in determining
Trade unions influence production decisions through negotiations about working conditions, which can affect what and how much to produce.
The function of money that enables it to be used in future is
Money's store of value function allows it to maintain purchasing power over time for future use.
Which of the following is a factor that determines the value of money in an economy?
The value of money is inversely related to the price level - as prices rise, money's purchasing power (value) decreases and vice versa.
The system of agriculture that involves production of food for family consumption is farming
Subsistence farming focuses on producing enough food to meet the family's needs rather than for commercial sale.
The type of inflation that occurs as a result of funding a deficit budget is inflation.
When governments fund deficits by increasing the money supply, it increases aggregate demand, leading to demand-pull inflation.
The slow but steady rise in the general price of goods and services is inflation.
Creeping inflation refers to a slow, steady rise in prices over time (typically 1-3% annually), considered normal and manageable in most economies.
Which of the following is a reason government participates in the location of industries in Nigeria?
Government intervention in industrial location ensures balanced regional development and prevents the concentration of industries in already developed areas.
The establishment of assembling industries in Nigeria is to
Assembling industries help protect local manufacturing from foreign competition while building industrial capacity and skills.
The principles of a good tax system was postulated by
Adam Smith outlined the four canons of taxation: equity, certainty, convenience, and economy, in 'The Wealth of Nations.'
The following are factors that determine the price of commodity except
A fall in the price of a commodity is itself the outcome, not a cause; high tax rate, inadequate capital, low bank rate and small market size are all constraints on firm growth affecting price.
At a point where marginal cost equals average cost, average cost is at its
When MC = AC, average cost is at its minimum. This is because MC pulls AC down when MC < AC and pulls it up when MC > AC.
Average utility is the satisfaction a consumer derives from
Average utility is total utility divided by the number of units consumed, representing satisfaction per unit.
A rational consumer maximizes utility where:
Consumer equilibrium occurs where the marginal utility per dollar spent is equal across all goods (the equi-marginal principle): mux/px = muy/py.
When the demand for a particular commodity falls as a result of an increase in income of a consumer, the products involved are ___ goods.
Inferior goods have negative income elasticity - demand decreases as income increases (e.g., cheap substitutes).
A rightward shift in demand curve implies that there is an increase in
A rightward shift indicates increased demand at all price levels, meaning higher quantities demanded at the same price level.
The payment of interest on loan taken by government is
Debt servicing refers to the payment of interest and principal on government borrowings.
The following are features of socialist economy except
Socialist economies focus on collective welfare rather than profit maximisation, which is characteristic of capitalist systems.
The headquarters of West African Currency Board (WACB) was in
The WACB, established during colonial times, had its headquarters in Berlin, Germany.
Issuance and control of currency in Nigeria is the function of bank
The Central Bank of Nigeria (CBN) has the exclusive authority to issue and control currency in the country.
Which of the following is a factor influencing location of an industry?
Access to raw materials reduces transportation costs and ensures a steady supply for production.
When the coefficient of elasticity of demand is 0.4, demand is
Price elasticity less than 1 (0.4 < 1) indicates inelastic demand - quantity demanded is relatively unresponsive to price changes.
When a change in price brings about proportional change in the quantity of a commodity sold, the supply is
When the percentage change in quantity supplied equals the percentage change in price, supply elasticity equals 1 (unitary elastic).
Pressure groups could be otherwise termed
Pressure groups are also known as interest groups, representing the concerns of specific segments of society.
In the absolute majority system of voting, a candidate is required to score up to ___ % of total vote cast, to be declared winner.
An absolute majority requires a candidate to secure at least 66.7% of total votes cast to be declared elected.
Proportional representation encourages ___ in the parliament.
Proportional representation ensures that parties receive parliamentary seats corresponding to their share of votes.
Which of the following is not a type of authority?
Physical authority is not recognised as a legitimate form of authority in political theory; it merely denotes coercive force.
The New Partnership for Africa's Development was adopted during the African Union summit held in
NEPAD was adopted at the Johannesburg summit, signifying a new development paradigm for Africa.
Power to assent to bills in a federal democracy is exercised by
In a federal democracy, the executive president has the constitutional power to assent to bills passed by the legislature.
A government in which the best citizen rules is
Aristocracy denotes governance by a select group regarded as the best or noblest citizens.
Political power in a democracy is derived from the
In a democracy, all political power originates from the people, who confer legitimacy on elected representatives.
The official launching of the African Union was in
The African Union was officially inaugurated in 2002, succeeding the Organisation of African Unity.
The Security Council of the United Nations consists of the United ___ permanent members.
The Security Council has five permanent members - China, France, Russia, the UK, and the USA - endowed with veto power.
The option "A-4" voting system was adopted in Nigeria during the regime of General
The 'Option A4' voting system was introduced under General Ibrahim Babangida's transition programme in 1993.
Anonymity of civil servants implies that they
Anonymity of civil servants means they neither receive public blame nor credit; ministers are accountable for departmental actions.
A unitary system can be defined as one organised under
A unitary system vests all governing authority in a single, centralised government without constitutionally guaranteed regional autonomy.
Decision that determines the pattern of interactions among nations is referred to as
Foreign policy encompasses the principles and strategies a state employs to manage its relations with other nations.
Military government is characterized by the following features except
Unlike constitutional democracy, military regimes lack constitutional supremacy. Military governments often use decrees and edicts rather than upholding the supremacy of a constitution.
Advertisement
…and/or go further with premium services and No Ads.