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NECO SSCE Economics 2025 past questions and answers

This 2025 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 2025 set with instant marking.

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Sample NECO SSCE Economics 2025 questions

1. In one day, Country R can produce either 12 units of cocoa or 6 units of textiles, while Country S can produce either 8 units of cocoa or 8 units of textiles. Which country has a comparative advantage in textiles?
  1. Country S, because its opportunity cost of one textile is one unit of cocoa
  2. Country R, because it can produce more cocoa
  3. Both countries, because they can produce textiles
  4. Country R, because its opportunity cost of one textile is one-half unit of cocoa

Answer: A. Country S, because its opportunity cost of one textile is one unit of cocoa

Country S gives up one cocoa per textile, less than Country R's two cocoa, so S has the comparative advantage in textiles.

2. A country's merchandise exports are worth ₦480 billion and its merchandise imports are worth ₦430 billion in a year. What is its balance of trade?
  1. A deficit of ₦50 billion
  2. A surplus of ₦50 billion
  3. A balanced trade account
  4. A surplus of ₦910 billion

Answer: B. A surplus of ₦50 billion

The balance of trade is exports minus imports, giving ₦480 billion − ₦430 billion = a ₦50 billion surplus.

3. If a country's export price index is 150 and its import price index is 125, what is its terms-of-trade index?
  1. 83.3
  2. 100
  3. 120
  4. 275

Answer: C. 120

The terms-of-trade index is (export price index ÷ import price index) × 100, which is (150 ÷ 125) × 100 = 120.

4. The government imposes a tax on imported footwear to make locally produced footwear more competitive. This measure is a
  1. quota
  2. subsidy
  3. embargo
  4. tariff

Answer: D. tariff

A tariff is a tax imposed on imported goods and can raise their prices relative to domestic products.

5. Other things being equal, a devaluation of a country's currency is most likely to make its exports
  1. cheaper to foreign buyers
  2. more expensive to foreign buyers
  3. unavailable in domestic markets
  4. unaffected in price to foreign buyers

Answer: A. cheaper to foreign buyers

Devaluation lowers the foreign-currency price of domestic goods when domestic prices and other conditions remain unchanged.

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