NECO Economics Past Questions & Answers - Page 43

211.

Efficiency of labour implies

A.

Education and training

B.

Good working condition

C.

Healthier workforce

D.

Increased productivity worker accompanied by improvement in the quality of output

E.

The amount of incentives or remuneration given to workers

Correct answer is D

No explanation has been provided for this answer.

212.

A tax system which takes lesser percentage of a tax payers income as his income increase is known as

A.

Direct tax

B.

Indirect tax

C.

Progressive tax

D.

Proportional tax

E.

Regressive tax

Correct answer is C

No explanation has been provided for this answer.

213.

In economics, electricity, water supply, communication networks, road, etc are known as

A.

Capital structure

B.

Development induces

C.

Development projects

D.

Infrastructural facilities

E.

Project growth

Correct answer is D

No explanation has been provided for this answer.

214.

Equilibrium prices is

A.

A price which equates demand with supply

B.

A price where there is excess demand

C.

Where consumers gain much

D.

Where producers gain much

E.

where supply is more than demand

Correct answer is A

No explanation has been provided for this answer.

215.

According to the theory of comparative advantages, countries are to specialize based on their

A.

Absolute cost advantages

B.

Absolute cost disadvantages

C.

Comparative cost advantages

D.

Comparative cost disadvantages

E.

The availability of labour

Correct answer is C

The theory of comparative advantage states that if countries specialise in producing goods where they have a lower opportunity cost – then there will be an increase in economic welfare. 

 

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.