SS1 Economics Third Term Examination Questions
Section A: Objectives
(1). One of these is not a basic concept of Economics
a. scale of cost
b. scarcity
c. scale of preference
d. opportunity cost
(2). Graphs, charts and tables in economics, are basic tools of
a. economy analysis
b. economic analysis
c. economic interpretation
d. economy interpretation
(3). Measures of Central tendencies in economics are all, except one
a. premium
b. median
c. mode
d. mean
(4). As the price of a good or service increases, the quantity demanded decreases, and conversely, as the price decreases, the quantity demanded increases, it is known as ......
a. graph of demand
b. principle of demand
c. law of demand
d. schedule of demand
(5). An increase in a good's price leads to an increase in the quantity supplied, as producers seek higher profits. Conversely, a decrease in price causes a decrease in quantity supplied, it is known as
a. law of supply
b. demand of supply
c. schedule of supply
d. principle of supply
(6). Some common determinants of equilibrium price and quantity are all except one
a. technology
b. Market supply
c. Market demand
d. paranormal
(7). Factors of production are all except one
a. business
b. land
c. labour
d. capital
(8). A key difference between a firm's scale of production and a firm's large-scale production is that it is
a. size and volume
b. labour and work
c. wage and salary
d. business and enterprise
(9). In the definition of division of labor which of these words complements it
a. productivity
b. specialization
c. accountability
d. decisive
(10). What to produce, how to produce, and for whom to produce in economics is known as
a. high economic problems of economy
b. low economy problems of society
c. intermediate economic shortcomings of society
d. basic economic problems of society
(11). Inadequate capital, inflation and government policy are
a. design of business operation
b. shortcomings of entrepreneurship
c. problem of business enterprises
d. principles of business operation
(12). A group of firms with similar production of a precise commodity is called
a. firm
b. organization
c. industry
d. plant
(13). A unique distinction between a private and public company is the
a. ability to trade shares on a public stock exchange.
b. ability of management transfer
c. human capital development
d. cooperation for production
(14). Quoted Companies: Often referred to as ...... and unquoted Companies: Often referred to as .......
a. Private Liability Companies (PLC) and public limited companies (LTD)
b. Public Liability Companies (PLC) and private limited companies (LTD)
c. Public Limited Companies (PLC) and private liability companies (LTD)
d. Possible Liability Companies (PLC) and primary limited companies (LTD)
(15). One of these is not a population theory in economics
a. minimal demographic
b. Demographic Transition
c. Optimum Theory
d. Malthusian Theory
(16). One is not an importance of population census
a. Economic and Social Policies
b. Resource Allocation & Distribution
c. Monitoring Social Progress
d. per capital income
(17). The capacity to increase production without increasing the number of workers is
a. efficiency of labour
b. labour equity
c. equity efficiency
d. equity deficiency
(18). Population size, age structure, retirement age, and education levels are
a. factors affecting the size of labor Force
b. problems facing a country
c. data for budget planning
d. advantages of economic growth
(19). The three (3) sectors of the nature of the Nigerian economy are all except for one
a. primary
b. secondary
c. intermediate
d. tertiary
(20). The nature of economic activity in Primary Sector, Secondary Sector and tertiary sectors are
a. (Extraction), (Manufacturing) and (Services)
b. (Extraction), (Manufacturing) and (Sanitation)
c. (Extraction), (Procuring) and (Services)
d. (Forestation), (Manufacturing) and (Services)
(21). Organizations established by government to help farmers with grading, marketing, distribution, and sales of agricultural products
a. marketing board
b. marketing agency
c. agriculture board
d. agriculture agency
(22). Coal and tin can be found in which states of Nigeria
a. Enugu and Jos
b. bayelsa and yenogoa
c. rivers and Port-harcourt
d. ondo and nasarawa
(23). Accept deposits from customers and pay interest on those deposits is a
a. feature of banking institutions
b. feature of non-banking institutions
c. feature of cooperative societies
d. feature of sole entrepreneur
(24). Capital market deals in long-term loans while money market deals in
a. instant loans
b. short-term loans
c. premeditated loans
d. basic loans
(25). Generally accepted as payment for services rendered is
a. money
b. wage
c. subject
d. capital
(26). One of these is a characteristics of money
a. homogeneity
b. division
c. productivity
d. ommission
(27). In channels of distribution, one is not among
a. entrepreneur
b. producer
c. retailer
d. wholesaler
(28). One of these is not an instrument of business finance
a. shares
b. vault
c. debentures
d. bonds
(29). The reward for Capital as a factor of production is
a. wage
b. interest
c. commission
d. rent
(30). The demand and supply schedule shows the relationship between _______ and _/ respectively
a. price and quantity demanded/supplied
b. quantity demanded and supplied
c. equilibrium price and quantity
d. equilibrium point and quantity point
Section B: Theory
Question (1): Economic Systems
i. What is economic system?
ii. State three most common types of economic system.
iii. State an advantage and disadvantage of each economic system.
Question (2): Agriculture
i. What is agriculture?
ii. List and define three (3) components of agriculture.
iii. List and define three (3) systems of agriculture.
iv. State two (2) importance of agriculture to the Nigerian economy.
Question (3): Money and Markets
i. What is Money?
ii. Define money market and capital market.
iii. State three functions of money.
iv. State two (2) source of funds for businesses.
Question (4): Distribution and Finance
i. What is channels of distribution? (Using a diagram to support definition).
ii. State two roles each for the first three agents in channels of distribution.
iii. State and define, two types of instruments used in business finance.
iv. State one problem of business financing in Nigeria.
Answers: Section A (Objectives)
|
No. |
Answer |
No. |
Answer |
No. |
Answer |
|---|---|---|---|---|---|
|
1 |
a |
11 |
c |
21 |
a |
|
2 |
b |
12 |
c |
22 |
a |
|
3 |
a |
13 |
a |
23 |
a |
|
4 |
c |
14 |
b |
24 |
b |
|
5 |
a |
15 |
a |
25 |
a |
|
6 |
d |
16 |
d |
26 |
a |
|
7 |
a |
17 |
a |
27 |
a |
|
8 |
a |
18 |
a |
28 |
b |
|
9 |
b |
19 |
c |
29 |
b |
|
10 |
d |
20 |
a |
30 |
a |
Answers: Section B (Theory)
Question (1)
i. Economic System: This refers to the structure and methods a society uses to produce and distribute goods and services. It determines how a country manages its resources.
ii. Types of Economic Systems:
- Capitalism (Free Market Economy)
- Socialism (Planned Economy)
- Mixed Economy
iii. Advantages and Disadvantages:
-
Capitalism:
- Advantage: Encourages competition and innovation.
- Disadvantage: Can lead to wealth inequality.
-
Socialism:
- Advantage: Ensures equitable distribution of resources and government protection for the poor.
- Disadvantage: Lack of individual initiative and slow decision-making (bureaucracy).
-
Mixed Economy:
- Advantage: Combines private efficiency with public social welfare.
- Disadvantage: Can suffer from too much government intervention or high taxes.
Question (2)
i. Agriculture: The science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.
ii. Components of Agriculture:
- Crop Production: The growing of food and cash crops (e.g., maize, cocoa).
- Livestock Farming: The rearing of animals for meat, milk, or skins (e.g., cattle, poultry).
- Fishery: The business of catching or farming fish and other aquatic animals.
iii. Systems of Agriculture:
- Peasant Farming: Small-scale farming mostly for family consumption.
- Commercial Farming: Large-scale farming intended for sale and profit.
- Plantation Farming: Large estates dedicated to a single cash crop (e.g., rubber or palm oil).
iv. Importance to Nigeria:
- Provision of food for the growing population.
- Provision of employment for a large percentage of the workforce.
Question (3)
i. Money: Anything that is generally accepted as a medium of exchange for goods and services and for the settlement of debts.
ii. Markets:
- Money Market: A market for short-term loanable funds (usually less than a year), used by banks and businesses for liquidity.
- Capital Market: A market for long-term loanable funds (stocks and bonds) used by companies and governments to fund major projects.
iii. Functions of Money:
- Medium of exchange.
- Measure of value (Unit of account).
- Store of value.
iv. Sources of Funds:
- Personal savings.
- Bank loans/overdrafts.
Question (4)
i. Channels of Distribution: These are the paths or routes through which goods pass from the producer to the final consumer.
(Flow: Producer \rightarrow Wholesaler \rightarrow Retailer \rightarrow Consumer)
ii. Roles of Agents:
-
Producer:
- Creates/manufactures the goods.
- Packages and brands the products.
-
Wholesaler:
- Buys in bulk from the producer.
- Provides storage/warehousing for goods.
-
Retailer:
- Sells in small quantities to the consumer.
- Gives feedback from consumers back to the wholesaler/producer.
iii. Business Finance Instruments:
- Shares: Units of ownership in a company that can be bought by investors.
- Debentures: A type of loan instrument issued by a company to borrow money from the public at a fixed interest rate.
iv. Problem of Business Financing in Nigeria:
- High interest rates from commercial banks make it difficult for small businesses to borrow and repay loans.
🎓 MORE BLOG POSTS: