NECO Past Questions and Answers - Page 221

1,101.

When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is

A.

Competitive demand

B.

Complementary demand

C.

Composite demand

D.

Independent demand

Correct answer is B

Complementary demand occurs when the demand for a particular product leads to the demand for a related but different product. It is also known as joint demand.  For instance, the demand for computer systems would lead to a corresponding demand for software because computers cannot function without software.

When there is a change in the prices of computers, it will also affect the prices of software.

 

1,102.

The assumptions of the principles of comparative cost advantage is based on

I. Absence of Trade Restrictions
II. No transport costs
III. Constant technology

A.

II & III only

B.

I & II only

C.

I, II & III only

D.

II only

E.

III only

Correct answer is B

No explanation has been provided for this answer.

1,103.

To an individual, the term cost will include expenditure on the following EXCEPT

A.

Clothing

B.

Entertainment

C.

Housing

D.

Payment of school fees

E.

Settling national debts

Correct answer is E

No explanation has been provided for this answer.

1,104.

The types of unemployment that evolved the use of machines to replaces human labour is known as

A.

Cyclical unemployment

B.

Frictional unemployment

C.

Seasonal unemployment

D.

Structural unemployment

E.

Technological unemployment

Correct answer is B

No explanation has been provided for this answer.

1,105.

The introduction of money into the economy has helped to resolve the following problems EXCEPT

A.

Accessibility of needs

B.

Availability of goods

C.

Coincidence of wants

D.

Making deferred payments

E.

Measure and store of value

Correct answer is A

No explanation has been provided for this answer.