NECO Economics Past Questions & Answers - Page 38

186.

Which of the following is NOT a reason for the absence of an industry in the rural areas?

A.

Absence of financial institution

B.

Restricted market

C.

Inadequate power and water supply

D.

Inadequate transportation

E.

Presence of external economies

Correct answer is E

External economies of scale are business-enhancing factors that happen outside a company but within the same industry. It has to do with the availability of skilled labor, banking facilities, transportation, communication, etc within a company.

Option E  is the correct option because rural areas lack most of the things that make up a company's external economies of scale.

187.

The law of variable proportion state that if the quantities of variable factor of production are used with fixed factor, after a certain point,

A.

Each successive unit of the variable factor brings about a decreasing marginal product

B.

Each successive unit of the variable factor bring about equal increase in marginal product

C.

Each successive unit of the variable factor bring about an increasing marginal product

D.

Each successive unit of the variable factor bring about four time increase in marginal product

E.

Each successive unit of the variable factor bring about more than equal increase in marginal product

Correct answer is B

No explanation has been provided for this answer.

188.

An economic system where both the public and individuals own and control means of production is known as ……… system

A.

Capitalism

B.

Communist

C.

Mixed

D.

Socialist

E.

Welfarism

Correct answer is C

No explanation has been provided for this answer.

189.

The first commercial oil well in Nigeria was discovered in

A.

1938

B.

1951

C.

1956

D.

1958

E.

1961

Correct answer is C

Oloibiri Oilfield was discovered on Sunday 15 January 1956 by Shell Darcy. It was the first commercial oil discovery in Nigeria.

190.

The demand for a commodity for the sake of what it will yield is

A.

Competitive demand

B.

Composite demand

C.

Effective demand

D.

Joint demand

Correct answer is A

No explanation has been provided for this answer.