PassSpark

NECO SSCE Economics 2020 past questions and answers

This 2020 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 2020 set with instant marking.

Practise the full 2020 setTimed exam mode

Sample NECO SSCE Economics 2020 questions

1. The price of a good rises from N10 to N12 and its quantity demanded falls from 100 units to 80 units. Using the arc method, the absolute price elasticity of demand is approximately
  1. 0.82
  2. 0.90
  3. 1.22
  4. 1.50

Answer: C. 1.22

Arc elasticity is (20/90) divided by (2/11), which is approximately 1.22.

2. A production possibility curve that is bowed outward from the origin indicates that
  1. opportunity cost increases as more of one good is produced
  2. resources are unemployed at every output combination
  3. both goods are produced at zero opportunity cost
  4. the economy has no scarcity problem

Answer: A. opportunity cost increases as more of one good is produced

The bowed-out shape reflects increasing opportunity cost as resources become less suitable for producing the good expanded.

3. A consumer maximizes utility by buying goods X and Y when, subject to the budget constraint,
  1. total utility from X equals total utility from Y
  2. marginal utility per naira spent is equal for X and Y
  3. the price of X equals the price of Y
  4. marginal utility of each good is zero

Answer: B. marginal utility per naira spent is equal for X and Y

The consumer equilibrium condition is equality of marginal utility per unit of expenditure across goods.

4. In a market economic system, the allocation of most resources is primarily guided by
  1. custom and tradition
  2. prices determined by demand and supply
  3. direct orders from a central planning authority
  4. the decisions of foreign governments

Answer: B. prices determined by demand and supply

Market prices communicate scarcity and incentives and thereby guide resource allocation.

5. A firm produces 5 units of output and has an average variable cost of N12 per unit. Its total variable cost is
  1. N17
  2. N60
  3. N2.40
  4. N120

Answer: B. N60

Total variable cost equals average variable cost multiplied by output, so N12 x 5 = N60.

More NECO SSCE Economics years

20262025202420232022202120192018201720162015201420132012201120102009200820072006200520042003200220012000

All NECO SSCE Economics years · NECO SSCE subjects

PassSpark questions are original practice questions written to each exam's syllabus and format, in the style of past questions. They are not official past papers and are not affiliated with JAMB, WAEC, NECO, any university or any exam body.