Equilibrium price in a free market is where:

quantity demanded equals quantity supplied

Division of labour increases output mainly through:

increased skill and saving of time

a fall in the number of workers

Equilibrium price occurs where

quantity demanded equals quantity supplied

A production possibility curve shifts outward when there is:

an increase in productive resources or technology

a rise in the general price level

The demand for salt is likely to be inelastic mainly because:

it takes a small share of income and has no close substitute

The main purpose of a protective tariff is to:

shield domestic industries from foreign competition

Opportunity cost is best defined as

the value of the next best alternative forgone

A country that depends on a single export commodity is vulnerable because:

a fall in its world price sharply reduces foreign earnings

Economic growth differs from economic development because growth refers to:

improvement in living standards and structure

The basic economic problem arises from

scarcity of resources relative to wants

National Examinations Council

NECO Economics · Papers III & II — Objective & Essay

One sitting, one clock, covering both the objective and the essay paper. The CBT simulator practises the objective half.

30 exam-style questions, written to the National Examinations Council format and free to read. The answers are here too — what they do not tell you is how many you would get right with a clock running.

Sit this paper timed All NECO Economics papers

NECO Economics · Papers III & II — Objective & Essay

1. Which of the following is a free good?

2. Equilibrium price in a free market is where:

3. The problem of double counting in national income accounting is avoided by counting only:

4. Division of labour increases output mainly through:

5. Equilibrium price occurs where

6. Which of the following is NOT a characteristic of good money?

7. A persistent rise in the general price level is called

8. The most liquid asset of a commercial bank is:

9. A production possibility curve shifts outward when there is:

10. The demand for salt is likely to be inelastic mainly because:

11. The reward for the factor of production "capital" is

12. The main purpose of a protective tariff is to:

13. A tax that takes a higher proportion of income as income rises is

14. Opportunity cost is best defined as

15. Product differentiation is a key feature of:

16. A maximum price fixed below the equilibrium will cause:

17. A country that depends on a single export commodity is vulnerable because:

18. Economic growth differs from economic development because growth refers to:

19. If the price of a normal good rises, quantity demanded will normally

20. The basic economic problem arises from

21. Unemployment caused by a mismatch between workers skills and available jobs is:

22. The difference between a country's visible exports and visible imports is the

23. A budget deficit occurs when government:

24. Which of the following is NOT a function of the central bank?

25. Division of labour is most likely to lead to

26. Economics is best defined as the study of:

27. The cost that does not vary with output in the short run is:

28. Open market operations involve the central bank:

29. A trade union bargains collectively mainly to:

30. The main disadvantage of over-dependence on petroleum in Nigeria is:

Reading these is not the same as sitting them.