Neco Economics 2002 Past Questions and Answers

Question 1:

• NECO 2002

If commodities A & B are jointly demanded, what will be the effect of an increase in the price of A on the demand for commodity B?

A. Decrease in demand for commodity B
B. Decrease in price of commodity B
C. Demand for commodity B remain constant
D. Increase in demand for commodity B
E. Increase in the price of commodity B

Question 2:

• NECO 2002

Which of the following factors will NOT account for an outward shift of production possibility curve?

A. Budgeting and planning based on expectations
B. Expansion in employment
C. Discovering and exploration of new resources
D. Introduction of improved production techniques
E. Skill improvement through education and training

Question 3:

• NECO 2002

The willingness of an individual backed up with purchasing power at a given time is ____________

A. Demand
B. Desire
C. Effective demand
D. Utility
E. Want

Question 4:

• NECO 2002

Which of the following is NOT a factor that brings about changes in demand?

A. A change in real income
B. Government policy
C. Increase in population
D. The price of the good or service
E. Taste and fashion

Question 5:

• NECO 2002

When an economy is having a balance of payment surplus the best alternative opened to it is to ____________

A. Borrow from abroad
B. Devalue its currency
C. Increase its foreign reserve
D. Promote imports into the country
E. Sell out its foreign assets