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NECO SSCE Economics 2023 past questions and answers

This 2023 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 2023 set with instant marking.

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Sample NECO SSCE Economics 2023 questions

1. A country specializes in producing a good when it has a lower opportunity cost of producing it than its trading partner; this is the principle of
  1. absolute advantage
  2. comparative advantage
  3. factor-price equalization
  4. protectionism

Answer: B. comparative advantage

Comparative advantage is based on having a lower opportunity cost, even if the country is not the most productive overall.

2. Which transaction is recorded as a credit in Nigeria's current account of the balance of payments?
  1. A Nigerian firm imports machinery
  2. A resident buys foreign shares
  3. A foreign tourist pays for a hotel stay in Nigeria
  4. The government repays an external loan principal

Answer: C. A foreign tourist pays for a hotel stay in Nigeria

Payment by a foreign visitor for services supplied in Nigeria is an export of services and a current-account credit.

3. The main purpose of imposing a tariff on imported shoes is to
  1. raise the price of imported shoes and protect domestic producers
  2. increase the quantity of shoes imported
  3. eliminate all domestic production costs
  4. reduce government revenue from trade

Answer: A. raise the price of imported shoes and protect domestic producers

A tariff is a tax on imports that raises their domestic price and can shield local producers from foreign competition.

4. When member countries of a customs union remove trade barriers among themselves and adopt a common external tariff, they have formed a
  1. free trade area
  2. common market
  3. monetary union
  4. customs union

Answer: D. customs union

A customs union combines free trade among members with a common tariff on imports from non-members.

5. If the naira price of one US dollar rises from N1,000 to N1,200, the naira has
  1. appreciated against the dollar
  2. depreciated against the dollar
  3. become a fixed currency
  4. increased its purchasing power abroad

Answer: B. depreciated against the dollar

More naira are now needed to buy one dollar, so the naira has depreciated against the dollar.

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