NABTEB Economics Objective and Theory Questions and Answers

The NABTEB Economics objective and theory questions aim to test students’ understanding of economic concepts and their application in the real world, domestically and internationally.

Economics is an important subject in the NABTEB program because it helps connect what we learn in books to real-life situations.

This guide is here to help students by giving them examples of NABTEB Economics multiple-choice and essay questions.

It will also share tips on how to get ready for these exams in a simple way.

NABTEB Economics Objective and Theory Questions

1. The table below shows the weekly data of a house wife expenditure on food items.

Illustrate the data accurately with a pie chart.

2. The following are the lengths in cm of twenty planks cut by a machine in a wood processing factory.

(a) Construct a frequency distribution table for the distribution of scores.

(b) Calculate the mean.

(c) Calculate the median.

(d) What is the mode?

3. (a) What is production?

(b) Explain five advantages of large scale production.

(4) Discuss five problems encountered in the distribution and marketing of goods in Nigeria.

5. (a) Define human capital development.

(b) Explain four factors affecting the efficiency of human capital

6. (a)i What is privatisation?

(ii) Give three advantages of privatisation.

(b)i What is deregulation?

(ii) Give two advantages of deregulation.

7. Explain five problems facing industrial development in West Africa

8. (a) Define Population Census

(b) Explain four factors responsible for inaccurate census figures in Nigeria

Answers to NABTEB Economics Objective and Theory Questions

The answers are captured below:

1. Pie Chart

(2a) Frequency distribution table

(b) Mean = Σfx/ Σf = 180/20 = 9cm

(c) Median = 6+6/2 = 6cm

(d) Mode = 8cm (highest frequency)

(3a) What is production

Production involves transforming inputs such as raw materials, labor, and capital into finished goods and services, playing a crucial role in fostering economic growth and meeting the diverse needs and desires of individuals.

(3b) Advantages of large scale production

(i) Economies of Scale: The advantage of large-scale production lies in the efficient use of resources, resulting in reduced average costs per unit. 

This is realized by sharing fixed costs through the production of a larger volume, which results in economies of scale.

(ii) Enhanced Efficiency: Economies of scale are achieved by specialization and the division of labor.

Specialization enables workers to concentrate on certain tasks which in turn helps them advance in their skill level. 

(iii) Technological Advancements: The bigger production units may be able to make significant investments in modern technology, machines, and equipment.

It follows that production processes are improved, automation is increased, and productivity is higher as a result.

(iv) Market Dominance and Influence: Farmers with large capacities and resources usually have the upper hand in the market.

They can lead the way in this field by creating trends, establishing standards, and running marketing strategies.

(v) Negotiating Power: The bigger the producer is, the more of a strong bargaining power it has with its suppliers.

Their capacity to buy materials and resources in bulk enables them to get better conditions.

(4) Problems encountered in the distribution and marketing of goods in Nigeria

(i) Infrastructure Deficiencies: The distribution and marketing of goods in Nigeria encounter challenges since the infrastructure is not as good.

This results in delays, more expensive projects, and difficulty in reaching faraway places.

(ii) Market Fragmentation: The multitude of ethnic groups and the fact that the market is fragmented make the distribution channels more difficult.

The fact that consumers have different preferences, cultural differences, and regional disparities means that there is no one-size-fits-all marketing strategy.

(iii) Limited Storage Facilities: The lack of modern storage facilities and warehouses exacerbates the issues of product deterioration.

Insufficient storage facilities negatively affect the chain of supply and thus jeopardize the quality of the products.

(iv) Bureaucratic Challenges: Complicated bureaucratic processes, which include detailed rules and customs procedures, result in the delay of goods.

Excessive paperwork and delays in securing essential permits contribute to inefficiencies in the distribution process.

(v) Security Issues: Distribution and marketing in Nigeria encounter significant risks from security challenges.

These security concerns lead to disruptions, heightened insurance costs, and the potential loss of valuable inventory.

5a.Define human capital development

Human capital development is raising the level of knowledge, skills, and capacity of individuals in the society or organization through education, training, and different programs.

(5b) Factors affecting the efficiency of human capital

(i) Education and Training: The usefulness of human capital is greatly dependent on the quality and relevance of educational and training programs.

(ii) Health and Well-being: The health and well-being of people determine their productivity in economic activities.

(iii) Work Environment: The environment of the work influences human capital efficiency.

(iv) Technological advancements enhance human capital efficiency by providing access to and proficiency in emerging technologies.

(v) Incentives and Recognition: Monetary and non-monetary motivators, in addition to recognition of achievements, are the driving forces of human capital efficiency. 

(vi) Diversity and Inclusion: The human capital’s efficiency is positively affected when diversity and inclusion are promoted.

(6ai) What is privatization?

Privatization is the process of handing over the ownership of state-owned assets, industries, or services to the private sector.

It encompasses the sale of state-owned enterprises or services to private individuals or companies.

(6aii) Advantages of privatization

(i) Efficiency: Privatization may help to increase efficiency and productivity because private firms seek to reduce costs and improve the production processes.

(ii) Innovation: Private ownership motivates companies to generate new ideas and enhance existing technology, aiming to improve the quality of their products or services.

(iii) Reduced Government Spending: Privatization can reduce the financial burden of the government by the transfer of the cost of operating and maintaining the assets to the private sector.

(6bi) What is deregulation?

Deregulation is the term used for the decreasing or removal of government regulations and control in a specific industry or sector.

(6bii) Advantages of deregulation

(i) Economic Growth: Deregulation can bring economic growth about by attracting investment and creating jobs.

(ii) Innovation: Deregulation usually brings about innovation since the companies are always finding new ways of being unique and attracting customers.

(iii) Increased Competition: Competition between industries is increased by deregulation, which leads to more innovation.

(7) Problems facing industrial development in West Africa

(i) Infrastructure Challenges: High transport costs and unreliable power supply, due to bad roads and power outages affect industries.

(ii) Access to Financing: Industries in West Africa find it difficult to access cheap finance which is crucial for the expansion of the firms.

(iii) Skills Gap: The mismatch between the skills in the workforce may negatively impact productivity.

(iv) Foreign Dependence: The dependence on exporting raw materials, with the result of low local product quality compared to developed countries, restricts industrial diversification.

(8a) Population census’s definition

A population census is the process of collecting detailed demographic, social, and economic data about all the residents of a specific area at one time from a government agency.

(8b)Factors responsible for inaccurate census figures in Nigeria

(i) Undercounting Issues

(ii) Political Interference

(iii) Cultural and Religious Factors

(iv) Technology and Training Gaps

(v) Impact of Migration and Urbanization

(vi) Security Concerns

Objective Answers

1-10: CCDDABBCBC

11-20: BCBADCDACB

21-30: ABCDBDCBDB

31-40: CBBBBCABCB

41-50: DDDCCDBCCC

NABTEB Economics questions do not only consist of knowing economic concepts but also applying them.

Keep in mind that the reason why you will not fail in these exams is not only because you will be able to remember the information.