NECO Economics Questions and Answers 2023/2024 (Theory and Objectives)

NECO Economics Questions and Answers 2023. I will be showing you past Economics objectives and theory repeated questions for free in this post. You will also understand how NECO Economics questions are set and how to answer them.

The National Examinations Council (NECO) is an examination body in Nigeria that conducts the Senior Secondary Certificate Examination and the General Certificate in Education in June/July and December/January respectively.

NECO Economics Objectives and Essay Answers 2023 (Expo)

The 2023 NECO Economics expo will be posted here today 1st August during the NECO Economics examination. Keep checking and reloading this page for the answers.

Today’s Economics OBJ Answers:

1-10: EDBEDCCDAE

11-20: CAADBCEBEA

21-30: BCCCBCAECA

31-40: DCEAADDCDD

41-50: CBEDEDDCBC

51-60: BDDACCDBEC

NECO Economics Essay Answers:

No(1a)

Population Growth Rate = ((Current Year Population – Previous Year Population) / Previous Year Population) x 100

(i) The population growth rate in 2000 : ((85-105)/105) x 100% = -19.05%

(ii) The population growth rate in 2001 is: ((65-85)/85) x 100% = -23.53%

(iii) The population growth rate in 2002 is: ((70-65)/65) x 100% = 7.69%

(1b)

Percentage of Working Population = (Working Population / Total Population) x 100

(i) The percentage of the working population in 1999 is: (45/105) x 100% = 42.86%

(ii) The percentage of the working population in 2000 is: (25/85) x 100% = 29.41%

(1c)

(i) Economic growth: A working population contributes to the growth of the economy by producing goods and services. They also pay taxes which can be used for the development of infrastructure and other public services.

(ii) Reduced dependency ratio: A working population reduces the dependency ratio, which is the ratio of non-working individuals to working individuals. This means that there are more people who are able to support themselves and others who are unable to work, such as children and the elderly.

No(2a)

Price (₦) | Quantity Demanded

————|——————

200 | 100

80 | 150

(2b)

Elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price)

Percentage change in quantity demanded = (New quantity demanded – Old quantity demanded) / Old quantity demanded x 100

= (150 – 100) / 100 x 100 = 50%

Percentage change in price = (New price – Old price) / Old price x 100

= (80 – 200) / 200 x 100 = -60%

Elasticity of demand = (50% / -60%) = -0.83

(2c)

The nature of elasticity in (-0.83) is inelastic.

Reasons:

(i) The coefficient of price elasticity of demand is less than 1 indicating that the demand for milk is relatively unresponsive to price changes. This suggests that even though there was a significant decrease in price the increase in quantity demanded was relatively smaller.

(ii) Inelastic demand typically occurs for products that are necessities or essential goods. Milk is considered an essential food item so even when the price decreases consumers are still likely to purchase it due to its necessity.

(2d)

(i) The price of the good or service

(ii) The income of consumers

(iii) The availability of substitute goods or services.

(4a)

An entrepreneur is an individual who starts and manages a business or enterprise, typically taking on financial risks in order to do so. Entrepreneurs are known for their willingness to innovate, their ability to identify and seize opportunities, and their determination to succeed.

(4b)

(PICK ANY FIVE)

(i.)Job creation: Entrepreneurs are key drivers of job creation in an economy. By starting new businesses or expanding existing ones, entrepreneurs generate employment opportunities, reducing unemployment rates and stimulating economic growth.

(ii.)Innovation and technological advancements: Entrepreneurs are often the catalysts for innovation and technological advancements. They identify unmet needs or problems in the market and develop innovative solutions, introducing new products, services, or business models that disrupt existing industries and drive progress.

(iii.)Economic growth and development: Entrepreneurs play a vital role in driving economic growth and development. Their ability to identify and seize market opportunities leads to increased productivity, greater efficiency, and the generation of wealth, which ultimately contributes to overall economic growth.

(iv.)Competition and market dynamics: Entrepreneurs introduce competition into markets, which benefits consumers by offering a wider range of choices, better quality products or services, and competitive pricing. This stimulates market dynamics and encourages existing businesses to improve and innovate to stay competitive.

(v.)Wealth creation and income distribution: Entrepreneurship provides opportunities for wealth creation, both for the entrepreneurs themselves and for their employees. The successful growth of businesses can lead to increased profitability, higher wages, and improved living standards for individuals and communities.

(vi.)Regional development: Entrepreneurs often play a crucial role in driving regional development by establishing businesses in underdeveloped or economically disadvantaged areas. This can lead to the revitalization of local economies, attracting investment, infrastructure development, and improving the overall quality of life in those regions.

(vii.)Social impact and philanthropy: Successful entrepreneurs often use their wealth and influence to make a positive social impact. They may engage in philanthropic activities, support charitable causes, or invest in initiatives that address social or environmental issues, contributing to the well-being of society as a whole.

(5a)

Specialization is the process of focusing on a specific task or skill in order to become more efficient and productive in that area. It involves individuals or organizations choosing to concentrate on a narrow range of activities and becoming highly proficient in those particular tasks.

(5b)

Advantages of Division of Labour

(i) Increased efficiency: When individuals or organizations specialize in a specific task they can develop expertise and skill in that area. This leads to increased efficiency and productivity as they become faster and more adept at carrying out the task. By allocating specific tasks to individuals who are skilled in those areas overall productivity is maximized.

(ii) Time-saving: Division of labor allows individuals to focus on their specific tasks eliminating the need to switch between different activities. This saves time and reduces the chances of errors or delays that could occur when switching tasks. By streamlining the workflow and reducing time wasted on transitioning between tasks the overall time taken to complete a project or produce a good is decreased.

(iii) Specialization leads to innovation: When individuals or organizations concentrate on a specific area they tend to become experts in that field. This depth of knowledge and experience often leads to innovation and advancements within that area. Specialized workers can come up with new techniques processes or ideas to improve their work leading to better quality products or services.

Disadvantages of Division of Labour

(i) Lack of versatility: Specialization in a particular task or skill can limit an individual’s ability to perform different tasks. This can make them less adaptable and flexible in a changing work environment. If there is a need for individuals to perform multiple tasks lack of versatility due to specialization can be a disadvantage.

(ii) Monotony and job dissatisfaction: Specialization often involves repetitive tasks that can become monotonous over time. This can lead to job dissatisfaction and lack of motivation among workers. The lack of variety in tasks can also lead to boredom and burnout which can have negative effects on job performance and overall morale.

(6a)

Economic integration refers to the process of removing barriers to trade and investment between different economies in order to promote closer economic ties and cooperation. It involves the creation of a single market and the establishment of common policies and regulations among participating countries or regions.

(6b)

(i) Increased trade: One of the primary goals of economic integration is to promote trade among participating countries. By eliminating tariffs quotas and other trade barriers countries can experience a significant increase in the flow of goods and services across borders. This leads to expanded markets for businesses increased efficiency and greater choice and lower prices for consumers.

(ii) Enhanced economic growth: Economic integration can stimulate economic growth by creating new opportunities for businesses and promoting investment. When countries come together to form a larger market it can attract more domestic and foreign investment leading to increased production and economic activity. This can result in higher levels of employment income and overall economic prosperity.

(iii) Access to larger markets: Economic integration allows businesses to access larger markets beyond their own domestic market. This can be especially beneficial for small and medium-sized enterprises (SMEs) that may have the or on a larger customers and opportunities growth which can up and become more.

(iv) Economies: Economic integration facilitates the consolidation of of of scale countries their economies businesses can production volumes which to cost savings and increased. This can particularly advantageous require significant investments technology as they can their fixed larger customer base.

(v) Cooperation: Economic foster closer political cooperation and likelihood of conflicts or disputes among participating countries. By working together to create common policies and regulations countries develop a greater sense of trust and interdependence. This can lead to stronger diplomatic ties increased regional stability and improved prospects for collaboration in other areas such as security environmental protection and social welfare.

(7a)

Economic growth refers to an increase in the production of goods and services in a country over a period of time, while economic development refers to the improvement in the living standards of people in a country over a period of time.

(7b)

(i) Low per capita income: Developing economies are characterized by low per capita income, which means that the average income of people in these economies is low.

(ii) High poverty rate: Developing economies are characterized by a high poverty rate, which means that a large percentage of the population lives below the poverty line.

(iii) High unemployment rate: Developing economies are characterized by a high unemployment rate, which means that a large percentage of the population is unemployed or underemployed.

(iv) Low levels of infrastructure: Developing economies are characterized by low levels of infrastructure, which means that basic amenities such as roads, electricity, and water supply are inadequate.

(v) Dependence on primary sector: Developing economies are characterized by a dependence on the primary sector, which means that a large percentage of the population is engaged in agriculture and other primary activities.

(8)

(a) Consumer Surplus: Consumer surplus is the economic benefit that consumers receive when they are able to purchase a product at a price lower than the maximum price they are willing to pay. It represents the difference between the price consumers are willing to pay and the actual price they pay. Consumer surplus is a measure of the overall welfare or satisfaction that consumers gain from their purchases.

(b) Balance of Payments Deficit: The balance of payments deficit refers to a situation where a country’s payments for imports and other international transactions exceed its receipts from exports and other international transactions over a specific period. It means that the country is spending more on foreign goods, services, and investments than it is earning from its exports and investments abroad. A balance of payments deficit indicates an outflow of domestic currency from the country and can have implications for the country’s currency value and overall economic stability.

(c) Terms of Trade: Terms of trade refers to the ratio at which a country can trade its exports for imports from another country. It represents the relative prices of a country’s exports and imports. An improvement in terms of trade means that a country can acquire more imports for a given quantity of exports, resulting in increased economic welfare. Conversely, a deterioration in terms of trade means a country has to export more to purchase the same quantity of imports, which can negatively impact its economic well-being.

(d) Elasticity of Demand: Elasticity of demand measures the responsiveness of the quantity demanded of a product to a change in its price. It indicates how sensitive consumers are to price changes. If demand is elastic, a small change in price will result in a proportionately larger change in quantity demanded. On the other hand, if demand is inelastic, quantity demanded will not change significantly in response to price fluctuations. Elasticity of demand is important for businesses to determine the impact of price changes on their revenue and profitability.

(e) Budget Surplus: A budget surplus occurs when a government’s total revenue (such as taxes, fees, and other income) exceeds its total expenditure during a specific period. It represents a positive balance in the government’s budget, indicating that it has generated more income than it has spent. A budget surplus can have various implications, such as reducing government debt, increasing available funds for public investments, or potentially lowering taxes. It is generally seen as a positive economic indicator, reflecting sound financial management.

(10a)

Mechanized farming refers to the use of various equipment and machinery to enhance the efficiency and effectiveness of farming practices. This might include the use of tractors, harvesters, irrigation systems, drones for crop monitoring, automated feeders for livestock, and other advanced technology.

(10b)

(i) Employment Generation: Agriculture is the largest employer of labor in Nigeria, providing jobs for millions of citizens and reducing unemployment rates.

(ii) GDP Contribution: As of my knowledge cut-off in 2021, Agriculture contributed about 23.8% of Nigeria’s Gross Domestic Product (GDP), making it a significant player in the economy.

(iii) Foreign Exchange Earnings: Agricultural exports, such as cocoa, palm oil, cashew nuts, and others, earn foreign exchange which helps in balancing the country’s external trade.

(iv) Provision of Raw Materials: Agriculture provides raw materials for industries such as food processing, textiles, and breweries, thus fostering industrial development.

(v) Food Security: By producing food crops, Nigeria can ensure food security and reduce its dependence on food imports.

(12a)

Cooperative Society is a voluntary association of individuals united by common economic, social, or cultural needs and aspirations. They come together to form a democratically controlled enterprise.

(12b)

(i) Personal Savings: This is the most common source of finance for small businesses where the entrepreneur uses their personal savings to start a business.

(ii) Retained Earnings: This is the profit that a company has earned but not yet distributed to its owners. Instead, it’s reinvested back into the business.

(iii) Bank Loans: Banks offer loans which businesses can use to finance their operations. They will have to pay back the loan with interest over a period of time.

(iv) Equity Finance: This involves selling a portion of the business to investors in return for capital. This could be through selling shares to the public (IPO) or private equity investment.

(v) Trade Credit: Suppliers may offer goods or services to businesses on credit. This allows businesses to delay payment, effectively giving them short-term financing.

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See: NECO Biology Questions and Answers

NECO Economics Practice Questions and Answers

The questions below are the NECO 2023 Economics Practice Questions. Go through them and be ready to score high in your NECO 2023 Economics Examination.

1. Developments outside a given firm which reduce the firm’s costs are called
A. internal economics
B. external economics
C. external diseconomies
D. optimum effects

ANSWER: B (external economics)

2. If at 10K per kg, 1000kg of yam were purchased, the resultant point elasticity of demand is
A. 0.33
B. 0.0001
C. 1
D.10000

ANSWER: C (1)

3. A situation in which all inputs are doubled and output also doubles is known as
A. constant proportions
B. increasing returns to scale
C. constant returns
D. constant returns to scale.

ANSWER: D (constant returns to scale)

More NECO Economics Questions and Answers Loading

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Tips on How to Pass NECO Economics Questions

The following tips will help you to pass the upcoming NECO Economics examination.

Have a Target and Work Towards Actualizing it 

You have decided to pass NECO Economics 2023 and I am sure of that. Now, the next thing you should do is set targets.

You have told yourself, “I will score A in Neco Economics 2023”, that’s not all. You need to plan on how to make it happen. Create a timetable and master plan to achieve your goals.

 Get the Recommended Textbook on Economics for 2023 NECO Examination

Normally, NECO recommends books for the examination. Apart from NECO Literature where certain novels are compulsory, you are free to use any good Economics textbook to prepare for NECO 2023 exam.

Some textbooks are more difficult to understand. If you have any topic you are finding difficult to understand, then get a textbook that will simplify the topics and make life better for you.

 Do not Skip Economics Examples and Exercise you Will Come Across While Reading: 

Many candidates are fond of skipping exercises and even examples while studying textbooks. In fact, we like notebooks so much that we could ask, “can I read my notebook and pass NECO Economics 2023?” Don’t be scared of attempting exercises in Economics. Face the challenges.

If you have any questions about the NECO Economics Questions and Answers 2023, kindly drop your question in the comment box.

Last Updated on August 1, 2023 by Admin