neco model questions vol1 2023 economics | Essay

Prepare for your exams with neco model questions vol1 questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 economics (Essay) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
Consider the following statements about the Nigerian economy.
Question Parts
(a)
Define scarcity and explain why it is regarded as the fundamental economic problem. Illustrate your answer with a relevant example from Nigeria.
(b)
Distinguish between wants and needs, and discuss how opportunity cost arises when a household decides to satisfy one want over another.
(c)
A farmer has 5 hectares of land. He can either plant maize, which yields a net return of ₦150,000 per hectare, or cassava, which yields a net return of ₦120,000 per hectare. If the farmer decides to plant maize on the whole farm, calculate the opportunity cost of this decision.
(d)
Discuss how the government can use price controls to alleviate scarcity of a staple food. Mention two possible advantages and two possible disadvantages of such intervention.
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
In a local Lagos market for bottled water the demand and supply relationships (quantities in thousands of litres, price in ₦ per litre) are given by: Qd = 120 – 0.5P Qs = –20 + 0.4P
Question Parts
(a)
Determine the equilibrium price and quantity in this market.
(b)
The government imposes a specific tax of ₦10 per litre on producers. Write the new supply equation, then calculate (i) the new equilibrium price paid by consumers, (ii) the price received by producers, (iii) the equilibrium quantity, and (iv) the total tax revenue collected.
(c)
Explain, using the concepts of price elasticity of demand and supply, how the burden of the tax is shared between consumers and producers in this market.
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
A firm sells a commodity in a perfectly competitive market. The market price falls from ₦200 to ₦150 per unit and, as a result, the quantity demanded rises from 5,000 units to 7,500 units per month.
Question Parts
(a)
Calculate the price elasticity of demand using the midpoint (arc) method.
(b)
Classify the demand as elastic, inelastic or unit‑elastic.
(c)
Give two plausible reasons why the demand for this commodity is elastic in the given situation.
(d)
If the firm wishes to increase its total revenue, should it raise or lower the price? Justify your answer using the elasticity concept.
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‑scale bakery produces two products separately. The data for one month are: • Bread: 2,000 loaves produced, total cost ₦500,000. • Pastries: 1,500 pieces produced, total cost ₦450,000. The bakery is considering joint production in a shared kitchen. The combined monthly cost of joint production is estimated at ₦880,000. Market prices are ₦300 per loaf of bread and ₦400 per pastry.
Question Parts
(a)
Determine the average (unit) cost of each product when produced separately.
(b)
Allocate the joint production cost to each product using the step‑down method, allocating first to the product with the larger proportion of total output value (use the given market prices). Show the allocation amounts.
(c)
Calculate the new average cost per unit for each product after the joint production allocation.
(d)
Discuss two advantages and two disadvantages of adopting joint production 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 wooden chairs. The total cost (TC) of producing q chairs per month is TC = 150,000 + 45q + 0.05q² (₦). The market price per chair depends on the quantity sold according to the demand equation P = 800 – 0.2q (₦).
Question Parts
(a)
Derive the revenue function R(q) and the profit function \(\pi(q)\).
(b)
Using marginal analysis, determine the output level q that maximises profit. Show all steps.
(c)
Calculate the maximum profit and state whether the firm should continue production in the short run. Explain your reasoning.
(d)
If the government imposes a tax of ₦10 per chair, explain qualitatively how the profit‑maximising output and profit would be affected.
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 Nigerian mobile‑telecommunications sector is dominated by a few large firms (e.g., MTN, Airtel, Globacom) together with many smaller providers.
Question Parts
(a)
Identify the market structure that best describes this sector and justify your choice with at least three characteristic features.
(b)
Explain how price and output are determined in the short run under this market structure, referring to the concepts of price‑maker or price‑taker.
(c)
The government caps the price of a standard 1 GB data bundle at ₦2,500, which is below the market‑clearing price. Discuss the likely short‑run effects on (i) consumer surplus, (ii) producer surplus, (iii) total welfare, and (iv) the incentive for firms to invest in network expansion.
(d)
Compare the likely impact of the same price ceiling on a perfectly competitive market versus a monopoly market, highlighting why the outcomes differ.
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 factor incomes recorded in Nigeria’s national accounts for the year 2022 (all figures are in billions of Naira).
Question Parts
(a)
Using the income approach, calculate the Gross Domestic Product (GDP) for the year.
(b)
Given that the estimated population at mid‑year 2022 was 200 million, compute the per‑capita GDP and interpret the result in the context of living standards.
(c)
Discuss two major limitations of the income approach in measuring the true level of national income.
(d)
Explain how a large informal sector can affect the reliability of the GDP figure you calculated in part (a).
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 following information relates to the Nigerian banking system in 2023:
Question Parts
(a)
If the reserve requirement ratio (RRR) is 10 % and the cash‑ratio (the proportion of deposits that the public holds as cash) is 20 %, calculate the money multiplier and the total money supply, assuming total bank deposits amount to ₦5 000 billion.
(b)
The central bank decides to raise the reserve requirement to 15 % while the cash‑ratio remains unchanged. Determine the new money multiplier and comment on the likely impact on credit creation in the economy.
(c)
Identify and briefly explain two other monetary‑policy instruments that the Central Bank of Nigeria could use to control the money supply.
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