Neco Economics 2005 Past Questions and Answers

Question 1:

• NECO 2005

Which of the following is a disadvantage of localization of industries?

A. Aiding cooperation among firms
B. Creating structural unemployment
C. Encouraging subsidiary industries
D. Encouraging the growth of skilled labour
E. Reducing cost of production

Question 2:

• NECO 2005

At the equilibrium price, ____________

A. Demand is greater than supply
B. Demand equates supply
C. Demand is less than supply
D. Price is equal to demand only
E. Price is equal to supply only

Question 3:

• NECO 2005

Which of the following is the correct order in the chain of distribution?

A. Consumer —> Distributor → Retailer → Producer
B. Producer → Consumer → Retailer → Wholesaler
C. Producer → Wholesaler → Retailer → Consumer
D. Retailer → Consumer → Producer → Wholesaler
E. Wholesaler → Retailer → Producer → Consume

Question 4:

• NECO 2005

The following are rewards for factors of production EXCEPT

A. Interest
B. Profit
C. Rent
D. Subsidy
E. Wages

Question 5:

• NECO 2005

Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds

A. As much to TR as to TC
B. Less to TR as to TC
C. Less to TC than to TR
D. More to TC than to TR
E. More to TR than to T