neco 2022 economics | Essay

Prepare for your exams with neco questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 economics (Essay) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
A small open economy produces only two goods: rice and cloth. The country imports wheat and exports cotton. The government is considering a policy to increase national income.
Question Parts
(a)
Define "opportunity cost" and explain how it applies to the production of rice versus cloth in this economy.
(b)
If the economy can produce either 1,200 tonnes of rice or 6,000 metres of cloth per year, calculate the opportunity cost of producing one tonne of rice in terms of cloth.
(c)
Discuss two ways the government could raise national income without increasing the production of rice or cloth, and evaluate the likely impact of each method on the economy.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 2 View Details
The market for smartphones in Nigeria for a particular month is summarised in the table below. Price (₦1000) | Quantity Demanded (units) | Quantity Supplied (units) 2 | 1500 | 400 4 | 1200 | 800 6 | 900 | 1200 8 | 600 | 1600 10 | 300 | 2000
Question Parts
(a)
Determine the equilibrium price and quantity using the data in the table. Show the method you use.
(b)
If the government imposes a price ceiling of ₦5,000 per smartphone, explain the likely effect on the market, calculate the resulting shortage, and discuss one possible unintended consequence.
(c)
Suppose a technological improvement reduces production costs, shifting the supply curve rightward so that at each price the quantity supplied increases by 200 units. Using the original demand schedule, calculate the new equilibrium price and quantity.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 3 View Details
The market for bottled water in a Nigerian city experiences a price increase due to a new tax. The price per litre rises from \u20a9150 to \u20a9180. In the same period, the quantity demanded falls from 12,000 litres per week to 9,600 litres per week.
Question Parts
(a)
Calculate the price elasticity of demand (PED) using the midpoint method. Show all steps of your calculation.
(b)
Based on the value obtained, classify the elasticity of demand and explain what it implies for total revenue when price rises.
(c)
If the government raises the tax further, advise whether the revenue from the tax is likely to increase or decrease, giving reasoning based on the elasticity calculated.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 4 View Details
A small bakery produces loaves of bread using labour as the only variable input while capital is fixed. The table below shows the total product (TP) of loaves produced per day at different numbers of workers employed. | Workers (L) | Total Product (TP) | |-------------|--------------------| | 1 | 20 | | 2 | 45 | | 3 | 75 | | 4 | 100 | | 5 | 120 | | 6 | 135 | | 7 | 145 | | 8 | 150 |
Question Parts
(a)
Compute the marginal product (MP) and average product (AP) of labour for each additional worker from the second worker onward. Present your results in a clear table.
(b)
Identify the stage of production (Stage I, II or III) for each level of labour based on the behaviour of MP, and state at which labour input the average product is maximum.
(c)
Discuss how the identified stage of production would affect the shape of the short‑run cost curves (total cost, average cost and marginal cost) for the bakery.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 5 View Details
A small manufacturing firm produces two products, X and Y, using the same plant. The total cost (TC) of producing q units of output (where q = q_X + q_Y) is given by TC = 200 + 5q + 0.02q^2 (in Naira). The price per unit of product X is ₦30 and per unit of product Y is ₦45. The firm plans to produce a total of 200 units, with the ratio of X to Y units being 3:2.
Question Parts
(a)
Determine the number of units of X and Y to be produced.
(b)
Compute total revenue and total cost for the planned production and state whether the firm makes a profit or a loss.
(c)
If the firm wants to achieve a profit of at least ₦5,000 while keeping the same 3:2 production ratio, what is the minimum total output q required? Show all steps.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 6 View Details
The market for a certain agricultural commodity is described by the inverse demand function P = 200 - 0.5Q, where P is the price per tonne (in Naira) and Q is the quantity demanded (in tonnes). The market supply is perfectly elastic at a price of ₦80 per tonne, reflecting a large number of small producers with constant marginal cost of ₦80.
Question Parts
(a)
Determine the equilibrium price and quantity in this market. Explain briefly why the market is classified as perfectly competitive.
(b)
Calculate the price elasticity of demand at the equilibrium quantity and interpret the result.
(c)
Suppose the government imposes a per‑tonne tax of ₦20 on producers. Assuming the supply remains perfectly elastic at the pre‑tax marginal cost, determine the new equilibrium price paid by consumers, the price received by producers, and compute the dead‑weight loss (DWL) caused by the tax. Show all steps.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 7 View Details
The table below shows the aggregate economic data for Econland for the year 2022 (all figures are in ₦ millions).\n\n| Item | Value |\n|-----------------------------------|-------|\n| Consumption (C) | 2,500 |\n| Investment (I) | 800 |\n| Government expenditure (G) | 1,200 |\n| Exports (X) | 600 |\n| Imports (M) | 500 |\n| Indirect taxes (T) | 300 |\n| Subsidies (S) | 50 |\n| Depreciation (D) | 200 |\n| Factor incomes earned by residents from abroad (F_in) | 150 |\n| Factor incomes earned by non‑residents from the domestic economy (F_out) | 120 |
Question Parts
(a)
Calculate the Gross Domestic Product (GDP) at market price using the expenditure approach.
(b)
Using the data above, determine (i) Gross National Product (GNP) at factor cost and (ii) Net National Product (NNP) at factor cost.
(c)
Discuss two ways in which an increase in depreciation would affect (i) the measurement of national income and (ii) the interpretation of economic welfare.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 8 View Details
The Central Bank of Nairaland operates a fractional‑reserve banking system. The required reserve ratio is 10%. Commercial banks collectively hold ₦150,000,000 as required reserves. In addition, they hold excess reserves equal to 5% of total deposits. The public holds currency equal to 30% of total deposits.
Question Parts
(a)
Determine the total amount of deposits in the banking system.
(b)
Calculate (i) the monetary base and (ii) the money multiplier for the economy.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support