2025 NECO Economics Likely Questions and Answers (Objective)

Introduction

Preparing for the 2025 NECO Economics examination? You have just discovered the best place to improving your success. This post will provide you with 2025 NECO Economics most likely questions and answers on objective type using the past trend and analysis of the syllabus as well as the opinions of the examiner.

study these questions, practice consistently. This guide is meant for all candidates who want to pass NECO Economics with flying colors.

🧠 NECO 2025 Economics Objective Questions (Likely OBJ)

1. Question: Opportunity cost is regarded as…
A. average B. marginal C. money D. real E. total

• Topic: Fundamental Concepts of Economics
• Correct Option: D
• Explanation: Opportunity cost is the value of the next best alternative that is forgone when a choice is made. It is not the money paid (money cost) but the actual goods or services you could have had instead. Therefore, it is often referred to as the real cost or true cost of a decision

2. Question: The order of ranking needs according to their importance is…
A. choice. B. opportunity cost. C. scale of preference. D. scarcity. E. wants

• Topic: Fundamental Concepts of Economics
• Correct Option: C
• Explanation: A scale of preference is a list of an individual’s wants or needs arranged in order of their priority or importance. It is a tool that helps individuals, firms, and governments make rational choices when faced with scarcity.

3. Question: Find the median of the following set of scores; 15, 20, 18, 2 and 5.
A. 02 B. 12 C. 15 D. 18 E. 20

• Topic: Basic Statistics in Economics
• Correct Option: C
• Explanation: The median is the middle value in a set of numbers that has been arranged in order.
  1. Arrange the scores in ascending order: 2, 5, 15, 18, 20.
  2. The middle number in this set of five scores is the third one, which is 15.

4. Question: The middle value when figures are arranged in ascending or descending order is…
A. mean. B. median. C. mode. D. quartile. E. range.

• Topic: Basic Statistics in Economics
• Correct Option: B
• Explanation: This question is a direct definition. The median is the measure of central tendency that represents the middle value of a dataset when it is arranged in order of magnitude.

5. Question: The core economic problem of a society is…
A. efficient use of resources. B. how to produce. C. resource allocation. D. scarcity of resources. E. where to produce.

• Topic: Fundamental Concepts of Economics
• Correct Option: D
• Explanation: The fundamental economic problem that gives rise to all other economic problems is the scarcity of resources. Human wants are unlimited, but the resources (land, labor, capital) available to satisfy these wants are limited. This scarcity forces societies to make choices.

6. Question: The most frequently occurring number in a set of data is…
A. mean. B. median. C. mode. D. range. E. variance.

• Topic: Basic Statistics in Economics
• Correct Option: C
• Explanation: This is the definition of the mode. It is the value that appears most often in a dataset.

7. Question: Determine the mean of the following set of numbers; 20, 30, 35, 15 and 10.
A. 22 B. 25 C. 30 D. 38 E. 40

• Topic: Basic Statistics in Economics
• Correct Option: A
• Explanation: The mean is the average of a set of numbers. It is calculated by summing all the values and dividing by the count of the values.
  • Sum = 20 + 30 + 35 + 15 + 10 = 110
  • Count of numbers = 5
  • Mean = 110 / 5 = 22.

8. Question: The asset that is used up in the course of production is ___ capital.
A. business B. circulatory C. current D. fixed E. social

• Topic: Factors of Production
• Correct Option: B
• Explanation: Capital that is used up or transformed during the production process, such as raw materials and fuel, is known as circulatory capital or working capital. Fixed capital (like machinery) is used repeatedly over many production cycles.

9. Question: The reward of a factor of production that cannot be fixed in advance is…
A. interest. B. profit. C. rent. D. salary. E. wage.

• Topic: Factors of Production
• Correct Option: B
• Explanation: The reward for entrepreneurship is profit. Unlike rent (for land), wages/salaries (for labor), and interest (for capital), which are often contractually fixed costs, profit is a residual amount. It is what is left after all other costs have been paid and can be positive, negative (a loss), or zero. It is not known for certain in advance.

10. Question: In the long run production period, all factors of production are…
A. constant. B. fixed. C. marginal. D. negative. E. variable.

• Topic: Theory of Production
• Correct Option: E
• Explanation: The long run is defined in economics as a period of time in which a firm can change the quantities of all its inputs. There are no fixed factors; all factors of production are variable.

11. Question: From the Fig. 3.1, excess supply is illustrated by…
A. P₁Q₂ B. P₃Q₄ C. P₁Q₃ D. P₂Q₃ E. P₃Q₁

• Topic: Theory of Demand and Supply
• Correct Option: B
• Explanation: Excess supply (or a surplus) occurs when the price is set above the equilibrium price (P₂). At the higher price P₃, the quantity supplied (read from the supply curve S) is Q₄, while the quantity demanded (read from the demand curve D) is only Q₁. The area of excess supply is the quantity (Q₄ – Q₁). The combination of the high price and the quantity supplied at that price is represented by the point P₃Q₄ on the supply curve.

12. Question: The basic economic problem of the society that considers quality of labour as a determining factor is…
A. efficient use of resources. B. for whom to produce. C. How to produce. D. What to produce. E. where to produce.

• Topic: Fundamental Economic Questions
• Correct Option: C
• Explanation: The question of “How to produce?” deals with the methods and techniques of production. This involves deciding on the combination of resources to use, such as whether to use a labor-intensive method (relying on the quality and quantity of labor) or a capital-intensive method (relying on machinery).

13. Question: What to produce in a market economy is determined by…
A. a consumer. B. a producer. C. an economist. D. the government. E. the wholesaler.

• Topic: Economic Systems
• Correct Option: A
• Explanation: In a market economy, the principle of consumer sovereignty holds. This means that the decisions of consumers, through their spending patterns, ultimately determine what goods and services are produced. Producers respond to consumer demand to make a profit.

14. Question: An economic system whose means of production are centrally controlled by the government is…
A. capitalism. B. communism. C. feudalism D. socialism. E. welfarism.

• Topic: Economic Systems
• Correct Option: D
• Explanation: Socialism (also known as a command or centrally planned economy) is an economic system where the government owns and controls the major means of production and makes all the key economic decisions regarding production and distribution.

15. Question: Which of the following is an advantage of free market economy?
A. Absence of competition B. Democratic in nature C. Encouraging hard work D. Equal opportunity E. Low cost of living

• Topic: Economic Systems
• Correct Option: C
• Explanation: A major advantage of a free market (capitalist) economy is that the potential for high profits acts as a powerful incentive. This encourages hard work, innovation, and efficiency among individuals and firms who want to succeed in a competitive environment.

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🎯 How to Use These Likely Questions Effectively

• Review NECO questions of the past to patterns.
• Take practice objective questions every day.
• Learn the concepts of theory, do not memorize.
• Talk with fellow students in study groups or have tutorials.
• Apply prescribed textbooks and Syllabus.

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✅ Conclusion

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