NECO SSCE Economics 2024 past questions and answers

1. Country S, because its opportunity cost of cloth is lower
2. Country R, because it can produce more rice
3. Country R, because cloth production uses fewer resources
4. Neither country, because both can produce cloth

Answer: A. Country S, because its opportunity cost of cloth is lower

One unit of cloth costs R 2 tonnes of rice but costs S only 1 tonne, so S has the lower opportunity cost.

1. It falls because fewer naira are needed per dollar
2. It rises because more naira are needed per dollar
3. It remains fixed by the exchange rate
4. It becomes equal to the local price of machinery

Answer: B. It rises because more naira are needed per dollar

A depreciation means the naira buys fewer dollars, making a dollar-priced import cost more naira.

1. Imported footwear becomes cheaper
2. Government revenue from the tariff must fall to zero
3. Imported footwear becomes more expensive relative to local footwear
4. The domestic supply of footwear automatically disappears

Answer: C. Imported footwear becomes more expensive relative to local footwear

A tariff is a tax on imports that raises their domestic price and may protect local producers.

1. A deficit of N1,375 million
2. A deficit of N65 million
3. A surplus of N1,375 million
4. A surplus of N65 million

Answer: D. A surplus of N65 million

The merchandise trade balance is exports minus imports, giving N720 million - N655 million = N65 million surplus.

1. greater than one
2. equal to zero
3. less than zero
4. exactly one-half

Answer: A. greater than one

The Marshall-Lerner condition states that the sum of the relevant export and import demand elasticities must exceed one.