Second Term Examination Economics for SS 1 – SS 3 Term 2 Exam Questions

ECONOMICS

SECOND TERM EXAMINATION 

SENIOR SECONDARY SCHOOL

SS 1 – SS 3 EXAM QUESTIONS 

Scroll down for SS 2  and SS 3 exam questions.

SS 1 ECONOMICS 

SECTION A

ANSWER ALL QUESTIONS. 

Instruction: Fill the gaps with the most suitable word from the options A – D.

1. Which of the following is a reward to a factor of production?

(a) interest

(b) donation

(c) gift

(d) subsidy

 

2. One of the advantages of large scale production is that,

(a) there is rise in the cost of administration

(b) consumers sacrifice their individual tastes

(c) the firm can use labour-saving machinery.

(d) the demand for a firm’s product becomes localized.

 

3. Which of the following is an advantage of division of labour?

(a) employment of experts

(b) monotony of work

(c) greater use of machinery

(d) Production of specialized goods

 

4. A limited liability company is owned by the _________.

(a) president of the country

(b) workers

(c) general manager

(d) shareholders

 

5. Which business organization enjoys tax-free profits in West Africa?

(a) co-operative societies

(b) private limited liability company

(c) joint stock companies

(d) partnership

6. The production factor, whose entire world supply is fixed is _________.

(a) land

(b) skilled labour

(c) capital goods

(d) entrepreneurship

 

7. When a worker changes from one type of job to another, it is called _________.

(a) geographical mobility of labour

(b) occupational mobility of labour

(c) immobility of labour

(d) rural-urban migration

 

8. A group of firms producing similar commodities for the same market constitute _________.

(a) a cartel

(b) an industry

(c) a co-operative

(d) wholesalers

 

9. Standardization of products or services is a feature of _________.

(a) large firms

(b) retailers

(c) small firms

(d) wholesalers

 

10. Which of the following is not a reason for establishing a public enterprise?

(a) discouraging investors

(b) opening up neglected parts of the country

(c) effective control of a natural monopoly

(d) rapid economic development

11. What must be added to variable cost to give total cost?

(a) average total cost

(b) average variable cost

(c) fixed cost

(d) marginal cost

 

12. A business outfit is said to be a public limited company when it _________.

(a) is owned by government

(b) it operates as a public corporation

(c) is run by the public

(d) it sells its shares to members of the public

 

13. Which of the following is a disadvantage of large scale production?

(a) Market economies

(b) Managerial economies

(c) impersonal organization

(d) Division of labour

14. The concept of opportunity cost is also referred to as _________.

(a) social cost

(b) real cost

(c) fixed cost

(d) variable cost

 

15. Which of the following is not true of small companies?

(a) They cannot benefit from economies of scale

(b) They are a good source of new jobs

(c) They can satisfy demand in specialist markets.

(d) They have good record of technical innovations.

16. An arrangement in which the debts of a company can only be paid from its own assets implies _________.

(a) unlimited liability

(b) transferred liability

(c) limited liability

(d) capital liability

 

17. In which of the following business units are the owners mostly the customers?

(a) Co-operative

(b) Limited liability companies

(c) Partnerships

(d) Public corporations

 

18. Which of the following does not affect a country’s population?

(a) Birth rate

(b) Death rate

(c) emigration

(d) Unemployment

 

19. The growth rate of population is the _________.

(a) annual increase in population

(b) total population of a country at a given time

(c) addition to the total population over a given period

(d) increase in the working population over a given period

 

20. At optimum population level, a country has its _________.

(a) maximum population

(b) ageing population

(c) highest birth rate

(d) highest output per head

 

SECTION B

Answer four (4) questions. 

QUESTION 1

a. What do you understand by population census?

b. What problems are encountered in the process of collecting census information in West-Africa? Give at least five points.

 

QUESTION 2

a. What are the merits and defects of the co-operative association as a form of business organization?

b. What are the advantages and disadvantages of a public joint stock company?

 

QUESTION 3

a. Explain the term, ‘Partnership’.

b. State its advantages and disadvantages

 

QUESTION 4

a. What are the dis-economies of large-scale production?

b. Distinguish between a plant, a firm and an industry. Show any relationship between them.

 

QUESTION 5

a. What is labour?

b. Describe its main features as a factor of production.

c. What are the roles of an entrepreneur in a business organization?

 

 

Scroll down SS 3 exam questions.

SS 2 ECONOMICS 

SECTION A

ANSWER ALL QUESTIONS. 

Instruction: Fill the gaps with the most suitable word from the options A – D.

1. A market equilibrium exists when _________.

(a) no buyer goes home empty handed

(b) demand and supply are increasing

(c) demand and supply are equal

(d) the price is fluctuating

 

2. The amount of goods offered to the market at respective prices and presented in a table is called _________.

(a) price schedule

(b) supply schedule

(c) scale of preference

(d) demand schedule

 

3. Productive resources can also be called _________.

(a) principles of production

(b) factors of production

(c) items of production

(d) labour and material resources

 

4. If the coefficient of elasticity of demand is 1.5, the demand is _________.

(a) fairly inelastic

(b) perfectly elastic

(c) elastic

(d) inelastic

 

5. If in the short run, commodity X and commodity Y are supplied jointly, which of the following is correct?

(a) an increase in demand for X will increase the supply of Y.

(b) an increase in demand for X will leave the supply of Y unchanged.

(c) an increase in demand for Y will raise the price of X.

(d) an increase in demand for X will cause less of Y to be produced.

6. The slope of supply curve is _________.

(a) horizontal

(b) uniform

(c) positive

(d) vertical

 

7. Data presented in tables are usually arranged in _________.

(a) charts and graphs

(b) rows and columns

(c) graphs and rows

(d) columns and charts

 

8. A supply curve which is vertical has an elasticity coefficient of _________.

(a) 0

(b) 0.5

(c) 1.5

(d) 2

 

9. If a 6% increase in price results in more than 6% decrease in quantity supplied, supply can regarded as _________.

(a) elastic

(b) unitary elastic

(c) perfectly inelastic

(d) perfectly elastic

 

10. Any price below the equilibrium price will lead to _________.

(a) increase in supply

(b) excess demand

(c) equality of demand and supply

(d) decrease in demand

11. Opportunity cost is defined as the _________.

(a) money cost

(b) cost of production

(c) real cost

(d) fixed cost

 

12. In Economics, a market is defined as any _________.

(a) agreement made for consumers to buy all they need

(b) agreement to sell commodities at low prices

(c) arrangement made for producers to sell all their goods

(d) arrangement where the buyers and sellers are in contact.

 

13. In the long run, factors of production are considered to be _________.

(a) at maximum

(b) fixed

(c) variable

(d) increasing

 

14. A shift in the supply curve indicates _________.

(a) exceptional supply

(b) change in supply

(c) change in quantity supplied

(d) elasticity of supply

 

15. The allocation of goods and services in a free market economy is performed by _________.

(a) the price system

(b) the banking system

(c) the central planning body

(d) government budgets

16. An excise tax is imposed on goods _________.

(a) smuggles into the country

(b) manufactured locally

(c) imported into the country

(d) seized by Customs officials

 

17. A tax is regressive if the _________.

(a) rate of tax is constant at all income levels

(b) rate of tax decreases as income increases

(c) rate of tax increases as income increases

(d) tax is direct rather than indirect.

 

18. The market price of a commodity is normally determined by the _________.

(a) law of demand

(b) interaction of the forces of demand and supply

(c) total number of people in the market

(d) total quantity of the commodity in the market.

 

19. Taxes levied on commodities are _________.

(a) direct taxes

(b) indirect taxes

(c) poll taxes

(d) investment taxes

 

20. One disadvantage of direct tax is that,

(a) government revenue is reduced.

(b) price of essential commodities fall.

(c) people are discouraged from additional work.

(d) firms make more profits.

 

SECTION B

Answer four (4) questions.

QUESTION 1

a. The weekly data refer to the market schedule for grape in a town.

From the schedule given above:

(i) state the price of grape fruit and the quantity demanded and supplied at equilibrium.

(ii) What happens to supply and demand at a price below the equilibrium price?

(iii) What happens to supply and demand at a price above the equilibrium price?

(iv) Express the situation in the above table in the form of a diagram.

 

b. The demand and supply equations for a commodity (in a free market) are given as Qd =10 – 2P

Qs = 4P – 8, given that P is in Naira, Qd and Qs are in kg, determine

(i) the equilibrium price

(ii) the equilibrium quantity

(iii) If the price (P) were to be N400, what will be the excess supply?

(iv) If the price were fixed at N1:00, what will be the excess demand?

 

QUESTION 2

a. Carefully distinguish between changes in supply and quantity supplied.

b. State the law of supply.

c. Explain the nature of the supply curve.

d. Define Market according to economics.

e. Define supply schedule.

 

QUESTION 3

a. Outline five factors that determine supply.

b. outline 3three importance of price system.

 

QUESTION 4

a. What is a tax?

b. For what purpose might a government impose taxation?

c. What is tax incidence?

d. What are progressive, regressive and proportional taxes?

 

QUESTION 5

a. Explain the qualities of good tax system.

b. Define the following:

(i) direct tax

(ii) indirect tax

 

c. What type of tax yields more revenue to the government of your country?

b. Give reasons for 5c?

SS 3 ECONOMICS 

SECTION A

ANSWER ALL QUESTIONS. 

Instruction: Fill the gaps with the most suitable word from the options A – D.

1. The study of Economics enables individuals to _________.

(a) change jobs

(b) be stingy

(c) evade tax

(d) make rational decisions

 

2. Most of the problems of economics arise as a result of _________.

(a) competing demands for scarce resources

(b) increase in demand for more goods and services

(c) the desire of producers to supply more goods and services

(d) the need to reduce the level of poverty

 

3. The reward to capital as a factor of production is _________.

(a) rent

(b) wage

(c) interest

(d) commission

 

4. The amount of satisfaction obtained from the consumption of a commodity at a particular time is called _________.

(a) marginal utility

(b) diminishing utility

(c) total utility

(d) average utility

 

5. Inferior goods are _________.

(a) goods that are generally in short supply

(b) goods that are no longer in demand

(c) goods whose demands fall as income increases

(d) goods whose price falls as demand increases

6. The market price of a commodity is normally determined by the _________.

(a) law of demand

(b) interaction of the forces of demand and supply

(c) total number of people in the market

(d) total quantity of the commodity in the market

 

7. In the normal market situation, when the price of a commodity rises, 

(a) the demand of the commodity will rise.

(b) the demand for the commodity.

(c) the supply of the commodity wil be constant.

(d) the supply of the commodity will fall.

 

8. The main difference between a private and a public enterprise is the _________.

(a) amount of profit realized

(b) mode of operation

(c) objective of the business

(d) ownership structure

 

9. The equilibrium level of output of a monopolist is determined at a point where _________.

(a) marginal cost equals average revenue

(b) marginal cost equals average cost

(c) marginal cost equals marginal revenue

(d) marginal revenue equals average cost

 

10. Which of the following is a legal tender in West Africa?

(a) treasury bills

(b) share

(c) credit card

(d) currency

11. The tendency for prices to rise while the value of money falls is known as _________.

(a) bills of exchange

(b) inflation

(c) depreciation

(d) deflation

 

12. The motive for holding money for investing in securities is referred to as _________.

(a) transactionary

(b) speculative

(c) accumulation

(d) deflationary

 

13. The difference between the gross national product (GNP) and the gross domestic product (GDP) is _________.

(a) total interest payment

(b) net income generated internally

(c) total national savings

(d) net income from abroad

 

14. Where the burden of a tax finally rests is called _________.

(a) tax object

(b) tax rate

(c) incidence of taxation

(d) system of taxation

15. What must be added to variable cost to give total cost?

(a) Average total cost

(b) Average variable cost

(c) Fixed cost

(d) Marginal cost

 

16. In a situation where demand is perfectly elastic, imposition of a tax on a commodity to raise its price will result in _________.

(a) consumers increasing their demand for the product

(b) consumers demand for the product remaining unchanged

(c) consumers shifting completely to substitute products

(d) suppliers increasing the supply of the product

 

17. Which of the following is a characteristic of monopoly?

(a) many sellers

(b) homogenous commodity

(c) single seller

(d) perfect knowledge

 

18. Which of the following is a middleman in the chain of distribution?

(a) an entrepreneur

(b) a producer

(c) a banker

(d) a retailer

 

19. Labour can be efficient where there are _________.

(a) adequate tools to work

(b) high level of employment

(c) limited vacancies

(d) government restrictions

 

20. Which of these is true of a perfect competition?

(a) P = AR < MR

(b) P > AR = MR

(c) P = MR < AK

(d) P = AR = MR

21. The role of government in promoting agricultural development includes the following except _________.

(a) paying the wages of farmers

(b) establishing and funding research

(c) formulation of policies

(d) provision of rural infrastructures

 

22. The following are advantages of large scale agriculture except _________.

(a) use of simple implements

(b) use of sophisticated implements

(c) increase in unemployment

(d) integration of crop and animal farming

 

23. The total stock of money available for use in an economy is _________.

(a) a function of money

(b) a characteristic of money

(c) the demand for money

(d) the supply of money

 

24. Dumping means the selling of goods in a foreign market at a price that is _________.

(a) below the home market price

(b) above the home market price

(c) equal to the home market price

(d) able to clear the home market

 

25. A rational consumer is one who _________.

(a) spends his income to maximize satisfaction

(b) is not influenced by advertisement

(c) who behaves in a particular way all the time

(d) knows the prices of all goods and buys the cheapest

26. Which of the following is not true about land?

(a) the supply is fixed

(b) land is mobile

(c) it is subject to diminishing returns

(d) land is heterogeneous

 

27. Which of the following does not change in the short run?

(a) Variable cost

(b) Marginal cost

(c) Total cost

(d) Fixed cost

 

28. A firm’s main aim is to _________.

(a) survive in business

(b) maximize profits

(c) increase its market shares

(d)satisfy the ambitions of its managers

 

29. Frictional unemployment can be reduced by _________.

(a) encouraging the use of restraining schemes

(b) removing barriers to labour mobility

(c) restricting the introduction of new technology

(d) lowering the level of wages paid to young people

 

30. If the labour force of a country is 2.5 million and 2 million are employed, what is the unemployment rate?

(a) 0.2%

(b) 20%

(c) 200%

(d) 250%

31. National income is used to measure _________.

(a) A country’s population size

(b) a country’s economic growth

(c) the human level of development

(d) the flow of import to a country

 

32. The process of increasing the real per capita income and effecting changes in various sectors of the economy is known as _________.

(a) economic acceleration

(b) economic development

(c) economic integration

(d) economic growth

 

33. Development plans in West Africa tend to deviate from their targets mainly due to

(a) political instability.

(b) lack of manpower.

(c) high population growth rate.

(d) low level of education.

 

34. The balance of trade is _________.

(a) an annual statement showing transactions

(b) the relationship between a country’s visible exports and import

(c) the relationship between a country’s receipt from visible and invisible trade

(d) an account that shows a country’s payments to other countries

 

35. The difference between the number of immigrants and emigrants is _________.

(a) natural growth rate

(b) natural increase

(c) net migration

(d) census

36. A decrease in demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is _________.

(a) derived

(b) composite

(c) joint

(d) competitive

 

37. An arrangement in which the debts of a company can only be paid from its assets implies _________.

(a) unlimited liability

(b) transferred liability

(c) limited liability

(d) capital liability

 

38. Which of the following best describes the mode? The _________.

(a) observation with the highest frequency

(b) average of two middle numbers

(c) items that occupies the middle position

(d) difference of two extreme values

 

39. If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as _________.

(a) elastic

(b) unitary elastic

(c) perfectly inelastic

(d) perfectly elastic

 

40. If a particular consumer derives total utility of 22 units having consumed 4 units of a given product, the average utility will be _________.

(a) 88 units

(b) 18 units

(c) 5.5 units

(d) 3.5 units

41. When depreciation is deducted from gross national product, the result is _________.

(a) total national income

(b) gross national product

(c) net national income

(d) net domestic product

 

42. In open market operations, what the central bank sells or buys are _________.

(a) shares

(b) debentures

(c) securities

(d) equities

 

43. When there is improvement in a country’s terms of trade, It means that the country’s _________.

(a) exports are cheaper relative to import

(b) imports are cheaper relative to exports

(c) volume of imports has declined

(d) volume of export has declined

 

44. A shift of the demand curve to the right when the supply curve remains constant, implies that,

(a) both price and quantity demanded will increase.

(b) only price increases.

(c) both price and quantity demanded will decrease.

(d) the price falls.

 

45. Which of the following are direct taxes?

(a) sales tax

(b) excise duties

(c) income and company tax

(d) tariff duties

46. Which of the following does not increase the population of a country?

(a) an increase in birth rate

(b) a decrease in death rate

(c) emigration

(d) early marriage

 

47. The comparative cost doctrine of international trade means specialization in production according to _________.

(a) absolute cost advantage

(b) absolute cost disadvantage

(c) comparative cost disadvantage

(d) comparative cost advantage

 

48. International trade is different from internal trade because of the _________.

(a) manufactured goods involved

(b) currency differential

(c) homogeneity of products

(d) heterogeneity of products

 

49. The full meaning of OPEC is _________.

(a) Oil and Petroleum Exporting Countries

(b) Original Petroleum Exporting Companies

(c) Organization of Petrol Exporting Countries

(d) Organization of Petroleum Exporting Countries

 

50. ECA means __________________________.

(a) Economic Commission of Africa

(b) Economic Community of Africa

(c) Exporting Countries of Africa

(d) Economic Conference of Africa

SECTION A

Answer one question only from this section.

QUESTION 1

The quantity of fertilizer (in bags) used by twenty farmers in one year is shown in the following distribution, 2, 4, 5, 5, 4, 8, 6, 7, 6, 2, 4, 5, 6, 6, 7, 10, 12, 10, 5 and 6.

Calculate

(a) the mean

(bi) the mode

(b) the median of the distribution

 

QUESTION 2

The demand and supply equations for a commodity (in a free market) are given as: Qd=10-2P

Qs=4P-8. Given that P is in naira, Qd and Qs are in kg, determine

(a) the equilibrium price and

(b) the equilibrium quantity

(c) if the price (P) were to be N4.00, what will be the excess supply?

(d) If the price were fixed at N1.00, what will be the excess demand?

SECTION C

Answer four (4) questions only. 

QUESTION 1

a. Explain the following terms and show the relationship between them.

(i) Primary production

(ii) Secondary production

(iii) Tertiary production

 

b. Explain fully when a production is said to be completed.

c. Differentiate clearly between consumer goods and producer goods. Give at least two examples of each.

 

QUESTION 2

a. Scarcity is the central problem of economics. Explain.

b. Distinguish clearly between opportunity cost and money cost.

 

QUESTION 3

a. What are the factors hindering the establishment of industries in most rural areas in West Africa? Give at least 5 points.

b. Distinguish between the location and localization of industry.

 

QUESTION 4

Write short notes on:

(a) budget surplus

(b) budget deficit

(c) recurrent abd capital expenditure

(d) balanced budget

 

QUESTION 5

a. Distinguish between the following pairs of concepts;

(i) GNP and GDP

(ii) NNP and NDP

(iii) NNI and GNI

(iv) National income and per capital income

 

b. What is meant by:

(i) the cost of living

(ii) the standard of living?

 

c. In what ways are these two terms related?

 

QUESTION 6

a. Examine briefly the origin of ECOWAS.

b. What advantages will your country derive from active participation of the ECOWAS?.