NECO Economics Past Questions & Answers - Page 48

236.

Which of these is a necessary condition for trade by barter?

A.

Double coincidence of wants

B.

Double exchange rate

C.

Durability of goods

D.

Divisibility of commodities

Correct answer is A

No explanation has been provided for this answer.

237.

The formular used by the Expenditure approach to calculate National income is

A.

Y= C + I + X - M –G

B.

Y= C + X – M – I + G

C.

Y = C + I + G + X – M

D.

Y = C – I + X – M + G

E.

Y = C + G – X + M – I

Correct answer is C

No explanation has been provided for this answer.

238.

In a two-sector economy, income is a function of

A.

Consumption + investment

B.

consumption + Investment + tax

C.

Consumption + investment + expenditure

D.

Consumption + exports + imports

E.

Saving + investment

Correct answer is A

No explanation has been provided for this answer.

239.

To discourage the consumption of harmful commodities, government should tax such commodities if they have

A.

Elastic demand

B.

Inelastic demand

C.

Negative demand

D.

Positive demand

E.

Unitary demand

Correct answer is B

No explanation has been provided for this answer.

240.

An economic system in which the decision on what and how to produce is determined by the individual is called

A.

Capitalism

B.

Communism

C.

Socialism

D.

Traditionalism

E.

Welfarism

Correct answer is A

Capitalism is an economic system in which private individuals or businesses own capital goods, and decide what and how to produce goods.