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NECO SSCE Economics 2013 past questions and answers

This 2013 NECO SSCE Economics set has 40 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2013 set with instant marking.

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Sample NECO SSCE Economics 2013 questions

1. Country P can produce either 10 units of millet or 5 units of cloth with the same resources, while country Q can produce either 8 units of millet or 8 units of cloth; which country has a comparative advantage in cloth production?
  1. Country Q, because one unit of cloth costs it only one unit of millet
  2. Country P, because it can produce more millet
  3. Country P, because its cloth output is smaller
  4. Neither country, because both can produce cloth

Answer: A. Country Q, because one unit of cloth costs it only one unit of millet

The opportunity cost of one unit of cloth is two units of millet in P but one unit in Q, so Q has the comparative advantage.

2. A government imposes a tariff on imported footwear mainly to achieve which immediate effect?
  1. Make imported footwear cheaper for local buyers
  2. Raise the domestic price of imported footwear and protect local producers
  3. Increase the quantity of foreign footwear supplied at every price
  4. Eliminate customs revenue from footwear imports

Answer: B. Raise the domestic price of imported footwear and protect local producers

A tariff raises the cost of imports, which can protect domestic producers while also generating public revenue.

3. If a country's export price index is 160 and its import price index is 125, what is its net barter terms-of-trade index?
  1. 78.1
  2. 125
  3. 128
  4. 285

Answer: C. 128

The terms-of-trade index is (export price index / import price index) x 100, which is (160 / 125) x 100 = 128.

4. If the naira appreciates against the US dollar, with other conditions unchanged, what is the most likely effect on Nigerian importers?
  1. They need more naira to buy the same dollar-priced imports
  2. The naira price of every imported good must rise
  3. Foreign goods become unavailable in Nigeria
  4. They need fewer naira to buy the same dollar-priced imports

Answer: D. They need fewer naira to buy the same dollar-priced imports

An appreciation increases the naira's value relative to the dollar, reducing the naira cost of a fixed dollar price.

5. Which transaction is normally recorded in the current account of a country's balance of payments?
  1. A domestic firm buys shares in a foreign company
  2. A Nigerian resident receives income from services provided abroad
  3. The central bank adds to its foreign-exchange reserves
  4. A foreign investor purchases a Nigerian factory

Answer: B. A Nigerian resident receives income from services provided abroad

Receipts for services supplied across borders are recorded in the current account, unlike investment flows and reserve changes.

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