NECO Economics 2022/2023 Exam Questions and Answers (Theory and Objectives)

NECO Economics Exam Questions and Answers

NECO Economics 2022 Exam Questions and Solutions. In this post, I’ll provide you with free access to previous Economics objective and theory problems and solutions. Additionally, you will comprehend how NECO Economics questions are restructured and how to respond to them.

2022 NECO Economics Essay Questions and Answers

During the NECO Economics exam, a link to the 2022 NECO Economics Expo will be posted here. For the solutions, keep checking and refreshing this page.









NECO Economics 2022 Essay Answers:


Ranking of needs: Needs are prioritized according to their relative importance using a scale of preference.

(ii)Highest priority determination: Scales of preference aid people to swiftly determine which demands are the most crucial among others.

(iii)Scale of preference aids people, businesses, and governments make reasonable decisions from a list of needs.

(iv)Scales of preference also aid people in making optimum use of the resources they have at their disposal.

(v) The most efficient use of resources is facilitated by the scale of preferences.

(vi) Maximization of satisfaction: Economic agents can maximize their satisfaction by using the scale of preferences.

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(vii) Financial responsibility: Scale of preference doe

(3a) Humans have an unquenchable desire to possess products or services that satisfy them. Human beings have several desires or demands, and because there are few ways to satisfy them, they are frequently referred to as being insatiable.

(3b) Limited resources employed to satisfy an endless number of desires are said to be scarce. The inability of people to satisfy all of their wants or needs is known as scarcity. Compared to the demand, these resources are sparse.

(3c) A system of picking or selecting one among multiple options is referred to as a choice. Numerous human demands and the limited availability of the resources utilized to fulfill these wants lead to choices. Therefore, a lack of options leads to choice.

(3d) A list of unmet wants ranked according to priority is referred to as a scale of preference. It is a list of our desires, grouped in priority order, illustrating the order in which we wish to be gratified. The most urgent desires are prioritized first, followed by the least urgent ones, in order of choice.

(3e) Opportunity cost is a way to express cost in terms of alternatives passed up. One’s desire is satisfied at the expense of another desire. It alludes to the desires that go unfulfilled in order to meet a more urgent necessity.

6a) Monopoly occurs when there is just one vendor in the marketplace.

(b)1. High Capital Cost: Starting up some businesses requires a lot of capital for an individual.

Resource Control: If one company or organization controls all the resources, it can monopolize the business of extracting and using resources.

Legal Protection: Governments may provide legal protection to businesses so they can engage in a type of trade that is exclusive to them, thereby establishing a monopoly in that trade.

The business with the potential for low profits: Choosing the right business to enter requires understanding the difference between investment and dividend.


A voluntary group of people, businesspeople, dealers, or organizations that share needs and interests is known as a cooperative society. To advance the members’ economic and welfare interests, member resources are combined.


[PICK ANY THREE] (i)Producers Co-operative Society

(ii)Wholesale Co-operative Societies

(iii)Retails Co-operative Society

(iv)Consumers’ Co-operatives Society

(i)The Producers Co-operative Society: Is a grouping of producers of related goods who have come together to expand the market for their goods. Additionally, they might buy large quantities of goods and raw materials to share or sell to other members at a discount.

(ii)Wholesale Co-operative Societies: A group of wholesalers who purchase from manufacturers in significant amounts.

(iii)Retails Co-operative Society: This organization was created by numerous small, independent retailers that joined forces, pooled their funds, and made bulk purchases from suppliers or wholesalers.

(iv)Consumers’ Co-operatives Society: This organization is made up of customers who pool their funds to purchase necessities in bulk directly from manufacturers. These goods are then given out or sold to members at fair pricing.

Read also: WAEC Commerce Questions and Answers 2022/2023

(12a) An industry is a collection of businesses that produce related goods and are managed separately.

(12b) (i) Tax Exemptions for Pioneer Industries: The federal government grants tax exemptions to pioneer industries for a predetermined number of years.

(ii) Protection of actual industries: The government safeguards actual industries by imposing high import taxes, outright bans, or restrictions on imported goods that compete with those produced in the country.

(iii) Development of infrastructural facilities: The government is also working to build more effective express routes, better road networks, and reliable telecommunications, energy, and water delivery systems

(iv) Establishment of Industrial Estate: The establishment of an industrial estate by the government will help to alleviate some of the issues that are placing industry in cities

(v) Establishment of the Nigerian Enterprises Promotion Decree: The Federal Military Government established the Nigerian Enterprises Promotion Decree in 1972 in an effort to transfer a portion of the revenues produced in Nigeria for the local population

9a) The quantity of goods that consumers are willing and able to buy at different prices over a specific time period is known as demand.

(b) (i)Price of the Products: The amount of a product that consumers are willing and able to purchase is inversely (negatively) correlated with its price.

(ii)The consumer’s income: Depending on the kind of goods we’re talking about, income has a different impact on how much of a product people are willing and able to purchase.

(iii)The cost of associated goods:

The impact that this has on how much one is willing and able to spend depends on the kind of good we’re talking about, just like with income.

(iv)Consumers’ Tastes and Preferences:

This less physical thing yet has a significant potential to affect demand. There are numerous factors that might alter someone’s preferences or likes, which can lead them to want to purchase more or less of a product.

Note: The answers below are for 2021.

Fx: 200, 240, 800, 650, 360, 210

x-x-bar: -21, -11, -1, 4, 19, 29

(x-x-bar)²: 441, 121, 1, 81, 361, 841

F(x-x-bar)²: 4410, 968, 20, 1053, 2166, 2523


Arithmetic mean (x-bar) = ∑fx/∑f = 2460/60 = 41


Variance = ∑f(x-x-bar)²= 11140/60 = 185.67

Standard deviation= √variance

= √185.67

= 13.63


(i)It does not give a fall range of the data

(ii)It can be hard to calculate

(iii)It only used with data where an independent variable is plotted against the frequency of it.


%∆ in Quantity dd/ %∆ in income = 100/150

= 0.667

%∆ in Qty dd = ∆ In Qty dd/ old Qty dd * 100/1

= 10/10 * 100/1

= 100

%∆ in income = ∆ in income * 100/1

= 3000/2000 * 100/1

= 150


As income rises, there is a greater demand for milk, resulting in positive income elasticity.


Luxurious goods


(i)A change in a commodity’s price

(ii) Modifications in fashion and taste

(iii) The consumer’s income

(iv) Advertisement


A person who buys things in bulk and resells them in smaller quantities is known as a wholesaler.


(i)High price: Middlemen drive up prices by tying additional expenses to the cost of goods.

(ii) Increased advertising: The addition of middlemen to the distribution chain raises the expense of raising consumer awareness.

(iii) Low profit: By raising the producer’s cost of production, middlemen will lower the producer’s profit.

(iv) Lower production: The use of middlemen will result in lower output, which will have an impact on the price of the items.


(i)Source of income: Taxes are levied on imported items in order to bring in the most money for the government coffers.

(ii)Decreased unemployment: By discouraging imports and promoting the survival of young industries, more unemployed people will find employment as a result.

(iii) To raise the level of living: Enabling a nation’s population to be self-sufficient and independent

(iv)Balance of payments deficit: Over time, it aids in a nation’s balance of payments deficit correction.

Trade restrictions: These encourage residents to buy more locally produced goods rather than imports.


Capital formation refers to a country’s net capital accumulation throughout an accounting period.


(i)Low Natural and Per Capital Income Levels

(ii) A lack of capital demand

(iii) Insufficient capital supply

(iv) Absence of financial and social burdens

(v) A lack of skilled business owners

(vi) Insufficiently sound budgetary policy


The act of purchasing and selling goods and services within a certain geographic area is known as internal trade. WHILE The exchange of products and services between two or more countries is known as external trade.



(i) They both exchange products and services.

(ii) They both conduct business.

(iii) They both use money in their daily lives.




(i) Buying and selling is between two or more countries

(ii) There is language barrier

(iii) It involves more documentation

Practice NECO Economics Exam Questions and Solutions

The NECO 2022 Economics Practice Questions are presented here. Read them through, and get ready to do well on your NECO 2022 Economics Exam.

  1. When there is progress outside a given firm which reduce the firm’s costs are called
  2. internal economics
  3. external economics
  4. external diseconomies
  5. optimum effects


ANSWER: B (external economics)

  1. If at 10K per kg, 1000kg of yam were bought, the resultant point elasticity of demand is
  2. 0.33
  3. 0.0001
  4. 1




  1. A situation in which all inputs are doubled and output also doubles is known as
  2. constant proportions
  3. increasing returns to scale
  4. constant returns
  5. constant returns to scale.

ANSWER: D (constant returns to scale)

You are free to utilize any reputable Economics textbook to study for the NECO 2022 exam, with the exception of NECO Literature, where specific novels are required.

Some texts are more challenging to comprehend. Get a textbook that will clarify any things you are having trouble understanding so that you will understand better.

Avoid Skipping the Economics Examples and Exercises in the Text:

While reading textbooks, many applicants enjoy skipping exercises and even examples. We even have the question, “Can I read my notebook and pass NECO Economics 2022?” because we love notebooks so much. Don’t be afraid to try the economics exercises. Take on the obstacles.


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