Neco Economics 2005 Past Questions and Answers

Question 11:

• NECO 2005

A major characteristics of a firm operating at a long-run equilibrium position is that ____________

A. All costs can be varied
B. Average variable cost is fixed
C. Fixed cost can not be changed
D. Marginal cost is fixed
E. Only variable cost changes

Question 12:

• NECO 2005

The problem of “how to produce” in any economy is solved by ____________

A. Adopting the least cost method of production
B. Combining capital and labour intensive methods of production
C. Employing the services of a manager
D. Using capital intensive method of production
E. Using labour intensive method of production

Question 13:

• NECO 2005

Which of the following is NOT an objective of Economic planning?

A. Achieving economic self reliance
B. Achieving economic growth
C. Creating employment
D. Equitable allocation of resources
E. Widening the income gap

Question 14:

• NECO 2005

The following will occur when maximum price is fixed below the free market price EXCEPT that

A. Black market will be encouraged
B. Excess demand will occur
C. Excess supply will occur
D. Rationing of commodities will occur
E. Scarcity of goods will occur

Question 15:

• NECO 2005

The following determine the level of consumption EXCEPT

A. Expectation of price changes
B. Level of income
C. Savings
D. The rate of taxes paid
E. The political climate