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

NECO Economics Questions and Answers 2023. I will be showing you past Economics objective 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 during the NECO Economics examination. Keep checking and reloading this page for the answers.

Note: The answers below are for the 2022 NECO exam.

ECONOMICS-OBJ
1-10: BDECEEEAAE
11-20: AECCDBAABA
21-30: EAAAEDDAAC
31-40: BAABBCEDBC
41-50: ABCAADCDED
51-60: DBCEAAABEE

NECO Economics 2022 Essay Answers:

(2b)

Ranking of needs:Scale of preference helps us to rank our needs or wants in order of their relative importance

(ii)Identification of highest priority: Scale of preference assists individuals to identity quickly the most important needs among others

(iii)Rational choice: Scale of preference assists individuals, firms and governments to make rational choices in the list of wants

(iv)Efficient utilisation of limited resources: Scale of preference also helps individuals to make efficient utilisation of available resources

(v)Optimum allocation of resources: Scale of preference facilitates optimum allocation of resources

(vi)Maximisation of satisfaction: Scale of preference enables economic agents to maximise their satisfaction.

(vii)Financial prudence: Scale of preference doe

(3a)
Wants are the insatiable desire or need by human beings to own goods or services that give satisfaction. Human wants or needs are many and are usually described as insatiable because the means of satisfying them are limited or scarce.

(3b)
Scarcity is the limited supply of resources which are used for the satisfaction of unlimited wants. Scarcity is the inability of human beings to provide themselves with all the things they desire or want. These resources are scarce relative to their demand.

(3c)
Choice refers to a system of selecting or choosing one out of several alternatives. Choices arise as a result of numerous human wants and the scarcity of the resources used in satisfying these wants. Choice, therefore, arises as a result of scarcity of resources.

(3d)
Scale of preference refers to a list of unsatisfied wants arranged in the order of their relative importance. It is a list showing the order in which we want to satisfy our wants arranged in order of priority. On the scale of preference, the most pressing wants come first and the least pressing ones come last.

(3e)
Opportunity cost is an expression of cost in terms of forgone alternatives. It is the satisfaction of one’s want at the expense of another want. It refers to the wants that are left unsatisfied to satisfy another more pressing need.

6a) Monopoly is a situation where there is a single seller in the market.

b.) 1. High Cost of capital: It is really capital intensive for an individual to start up certain businesses.

2. Resource Control: A business of mining resources and utilising these resources can be monopolised if the firm or company controls all the resources.

3. Legal Protection: Governments can grant legal protection to businesses to operate a kind of trade that no other business or company can operate thereby creating a monopoly of such trade in the process

4. The business having the potential to yield low profits: Business strategy involves knowing the disparity between investment and dividend and making the right choice of business to enter.

(7a)
A co-operative society is a voluntary association of persons, businessmen, traders or organization with common needs and interests. The resources of members are pooled together to promote the economic and welfare interest of the members.

(7b)
[PICK ANY THREE] (i)Producers Co-operative Society
(ii)Wholesale Co-operative Societies
(iii)Retails Co-operative Society
(iv)Consumers’ Co-operatives Society

(i)Producers Co-operative Society: This is an association of producers of similar commodity who have come together for the promotion of the market for their products. They could also purchase tools and raw materials in bulk and share or sell them to members at reduced prices.

(ii)Wholesale Co-operative Societies: Association of wholesalers buying in large quantities from the Manufacturer

(iii)Retails Co-operative Society: This is an association formed by many small independent retailers pooling their resources together and buying in bulk either from the manufacturers or wholesalers.

(iv)Consumers’ Co-operatives Society: This is formed by consumers who pool their resources together to buy essential commodities in bulk direct from manufacturers. Such commodities are then distributed or sold at reasonable prices to members.

(12a)
An Industry can be defined as a group of firm producing similar product and under separate administration of management

(12b)
(i) Tax Concessions to pioneer Industries: The federal government give tax Concession to pioneer Industries for a specified number of years during which the industry will not pay tax
(ii) Protection of infact industries: the government protect infact industries through high import duties and outright ban or placement of quotas or imported commodities which compete with those of home industries
(iii) Development of infrastructure facilities: Government has also embark on construction of better road networks especially the express roads efficient telecommunications, electricity and water supply system
(iv) Establishment of Industrial Estate: The government should also Establish industrial estate and thus reduce the problems of locating industries in urban areas
(v) Establishment of Nigerian Enterprises Promotion Decree: the Nigerian Enterprises of promotion decree of 1972 was set up by the Federal military government in an attempt to transfer part of the profits. Generated in Nigeria to the local people

9a) Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.

b.) 1. Price of the Products:
There is an inverse (negative) relationship between the price of a product and the amount of that product consumers are willing and able to buy.

2. The Consumer’s Income:
   The effect that income has on the amount of a product that consumers are willing and able to buy depends on the type of good we’re talking about.
3. The Price of Related Goods:
   As with income, the effect that this has on the amount that one is willing and able to buy depends on the type of good we’re talking about.
4. The Tastes and Preferences of Consumers:
   This is a less tangible item that still can have a big impact on demand. There are all kinds of things that can change one’s tastes or preferences that cause people to want to buy more or less of a product

---

Note: The answers below are for 2021

Fx: 200, 240, 800, 650, 360, 210

x-x-bar: -21, -11, -1, 4, 19, 29

(x-x-bar)²: 441, 121, 1, 81, 361, 841

F(x-x-bar)²: 4410, 968, 20, 1053, 2166, 2523

(1i)

Arithmetic mean (x-bar) = ∑fx/∑f = 2460/60 = 41

(1ii)

Variance = ∑f(x-x-bar)²= 11140/60 = 185.67

Standard deviation= √variance

= √185.67

= 13.63

(1iii)

(i)It does not give a fall range of the data

(ii)It can be hard to calculate

(iii)It only used with data where an independent variable is plotted against the frequency of it.

(2a)

%∆ in Quantity dd/ %∆ in income = 100/150

= 0.667

%∆ in Qty dd = ∆ In Qty dd/ old Qty dd * 100/1

= 10/10 * 100/1

= 100

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%∆ in income = ∆ in income * 100/1

= 3000/2000 * 100/1

= 150

(2b)

Positive income elasticity: This is as a result of having more quantity demand for milk as income increases

(2c)

Luxurious goods

(2d)

(i) Change in price related commodity

(ii) Change in taste and fashion

(iii) Income of the consumer

(iv) Advertisement

(4a)

A wholesaler is a person whose business is buying large quantities of goods and selling them in smaller amounts

(4b)

(i)High price: Middlemen cause high price of goods by adding cost to the cost of goods

(ii) Increase in advertisement: The introduction of middlemen in the chain of distribution leads to high cost of creating awareness to the customer

(iii) Low profit: Middlemen will reduce the profit of the producer by increasing the cost of production for the producer

(iv) Decrease in production: Middlemen will lead to decrease in production of goods that will affect the price of the goods

 (11)

(i)Source of revenue: To get most income into the government purse, taxes are imposed on goods coming in from other countries.

(ii)Reduction of unemployment: This discourages importation and encourages infant industries to survive which will create jobs for more unemployment people

(iii) To improve standard living: To help the citizens of a country to be self-sufficient and self reliant

(iv)Balance of payment deficit: It helps to correct a country’s balance of payment deficit in the long run

(v)Trade restriction: This enables the citizen to consume more locally made goods instead of foreign goods

====================================

(3a)

Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country

(3b)

(i) Low level of Natural income and per capital income

(ii) Lack in demand of capital

(iii) Lack in supply of capital

(iv) Lack of Economic and social overheads

(v) Lack of skilled entrepreneurs

(vi) Lack of effective fiscal policy

====================================

(10a)

Internal trade is the act of buying and selling of goods and services within a geographical area WHILE External trade is the buying and selling of goods and services between two or more countries

 (10b)

=SIMILARITIES=

(i)They both engage in exchange of goods and services

(ii) They both engage in trade e

(iii) They both involve in the use of money to facilitate trade

=DIFFERENCES=

TABULATE

>INTERNATIONAL TRADE

(i) Buying and selling is between two or more countries

(ii) There is language barrier

(iii) It involves more documentation

NECO Economics Essay Answers Loading…

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)

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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 April 4, 2023 by Admin