Second Term Examination Economics SS 1 – Exam Questions








Answer all questions. 


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? they

(a) cannot benefit from economies of scale

(b) are a good source of new jobs

(c) can satisfy demand in specialist markets.

(d) 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 . 



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.



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?



a. Explain the term, Partnership.



b. State its advantages and disadvantages



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.



a. What is labour? Describe its main features as a factor of production.


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



Best of Luck