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NECO SSCE Economics 2021 past questions and answers

This 2021 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 2021 set with instant marking.

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Sample NECO SSCE Economics 2021 questions

1. At a price of N4 per unit, quantity demanded is 60 units and quantity supplied is 60 units; this price is the market
  1. surplus price
  2. maximum price
  3. equilibrium price
  4. minimum price

Answer: C. equilibrium price

At equilibrium, quantity demanded equals quantity supplied, which is 60 units at N4.

2. If the price of tea rises and the quantity demanded of sugar falls, the cross elasticity of demand between tea and sugar is
  1. negative
  2. positive
  3. zero
  4. infinite

Answer: A. negative

A negative cross elasticity indicates that the goods are complements because a rise in tea's price reduces demand for sugar.

3. When price rises from N10 to N12 and quantity demanded falls from 50 to 40 units, the price elasticity of demand using the initial values is
  1. 0.5
  2. 0.8
  3. 1.5
  4. 1.0

Answer: D. 1.0

Quantity falls by 20% while price rises by 20%, so the absolute elasticity is 20% divided by 20%, or 1.0.

4. A factory can produce 50 tonnes of maize or 0 machines, and its production possibility curve is linear; producing 10 machines instead of 0 reduces maize output to 30 tonnes, so the opportunity cost of each machine is
  1. 0.2 tonnes of maize
  2. 2 tonnes of maize
  3. 3 tonnes of maize
  4. 20 tonnes of maize

Answer: B. 2 tonnes of maize

The 10 machines cost 20 tonnes of maize, so each machine costs 20 divided by 10, or 2 tonnes.

5. A farmer adds more workers to a fixed-size plot, and each additional worker eventually adds less to total harvest than the previous worker; this illustrates the law of
  1. increasing returns to scale
  2. diminishing marginal returns
  3. increasing marginal utility
  4. comparative advantage

Answer: B. diminishing marginal returns

With one factor fixed, marginal product eventually falls as additional units of a variable factor are employed.

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