ECONOMICS THIRD TERM EXAMINATION SENIOR SECONDARY SCHOOLS (SS 1) EXAM QUESTIONS Volume 2 

SECTION A – OBJECTIVES

INSTRUCTION – CHOOSE THE CORRECT ANSWER FROM THE OPTIONS A – D.

1. Agriculture plays a dominant role in our country because ______.

(A) it’s the main source of energy

(B) it employs more than 50% of the total labour force

(C) it supplies all the total inputs

(D) There are large plantation of cocoa, groundnut and palm oil

 

2. Which of the following sector of the economy is estimated to be the largest employer of labour in the country?

(A) construction

(B) agriculture

(C) distribution

(D) Mining and petroleum

 

3. Which of the following is not a component of agriculture?

(A) Crop production

(B) Fishery

(C) Mining

(D) Forestry

 

4. Which of the following zones in Nigeria generates electricity in Nigeria?

(A) Northern

(B) South south

(C) South east

(D) South west

 

5. Which of the following is not a problem facing agriculture in Nigeria?

(A) high population growth rate

(B) illiteracy

(C) inadequate extension workers

(D) Pest and diseases

 

6. Which of the following is not a quality of money?

(A) Divisibility

(B) Portability

(C) Acceptability

(D) Store of value

 

7. Which of the following must any money possess in order to be generally acceptable?

(A) Divisibility

(B) Mobility

(C) Durability

(D) Legality

 

8. Coins and notes are legal tender because they are ______.

(A) printed by the central bank

(B) backed by law

(C) backed by gold

(D) issued by all banks

 

9. The price of commodities at which the quantity demanded equal the quantity supplied is called ______.

(A) demand price

(B) supply price

(C) equilibrium price

(D) demand and supply price

 

10. The quantity of goods and service a supplier is willing to offer for sale at a particular price and time is called ______.

(A) demand

(B) supply

(C) equilibrium

(D) schedule

 

11. One of the following is not a factor that affect demand.

(A) taste

(B) fashion

(C) festive period

(D) cost of production

 

12. The table that shows the relationship between the prices of goods and the quantity offered for sale at a time is called ______.

(A) demand schedule

(B) supply schedule

(C) demand curve

(D) supply curve

 

13. One of the following is not a type of supply ______.

(A) derived supply

(B) composite supply

(C) competitive supply

(D) Joint supply

 

14. The type of demand in which a commodity can satisfy more than one want is called ______.

(A) competitive demand

(B) complementary demand

(C) composite demand

(D) Joint demand

 

Given the demand and supply functions Qd = 20 – 2p and Qs = 6p – 12. Use the equation above to answer question 28 to 30.

15. What is the equilibrium price?

(A) 4

(B) 3

(C) 5

(D) 12

 

16. What is the equilibrium quantity?

(A) 12

(B) 16

(C) 4

(D) 6

 

17. If the equilibrium price is fixed at N2, what will be the excess demand?

(A) 26

(B) 16

(C) 6

(D) 4

 

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

(A) an entrepreneur

(B) a producer

(C) banker

(D) a retailer

 

19. Who among the following is the intermediary between the producer and the retailer?

(A) Manufacturer

(B) Wholesaler

(C) Consumer

(D) Agent

 

20. Effective distribution of goods in West Africa is hindered by ______.

(A) banking services

(B) insurance services

(C) high transport cost

(D) administrative inefficiency

 

21. Which of the following represents a good channel of distribution?

(A) consumer, retailer, wholesaler, and producer

(B) producer, retailer, wholesaler and consumer

(C) producer, consumer, wholesaler and retailer

(D) Producer, wholesaler, retailer and consumer

 

22. The argument for the elimination of middlemen from the distributive process is that they ______m

(A) delay the delivery of goods

(B) don’t provide a variety of goods to the consumers

(C) don’t provide credit facilities

(D) Make a excessive profit

 

23. The inefficient distribution of commodities in west Africa is due to the ______.

(A) activities of middlemen

(B) level of poverty

(C) narrow market

(D) sovereignty of the consumers

 

24. Which of the following is not usually the function of wholesaler?

(A) transport

(B) storage

(C) advertising

(D) after-sale service

 

25. Retailer in an economy performs the function of ______.

(A) production

(B) exchange

(C) distribution

(D) hoarding

 

26. Given that Qd = 20 – 2P and QS = 6P -12. If the equilibrium price is ₦6, What is the excess supply?

(A) 20

(B) 5

(C) 4

(D) 3

 

SECTION B – FILL IN THE GAPS

27. How many geo political zones are in Nigeria? ______

28. Which of the following zones in Nigeria Anambra state is ______.

29. The process of exchange goods for goods is called ______.

30. ______ refers to a graph showing the relationship between the quantity demanded and prices.

 

SECTION C – THEORY

INSTRUCTION – ATTEMPT ONLY 3 QUESTIONS FROM THIS SECTION. QUESTION ONE IS COMPULSORY. 

QUESTION 1

AThe demand and supply functions are given as Qd = 55 – 1/5p and Qs = 20 + 4/5p

A. Calculate the equilibrium price.

B. Calculate the equilibrium quantity.

C. If the equilibrium price falls to N20, what is the excess demand?

D. If the equilibrium price rises to N50, calculate the magnitude of the excess supply.

 

QUESTION 2

A. Define central bank.

B. State 5 instruments of monetary policy or weapons used by central bank to control the activities of commercial banks.

 

QUESTION 3

A. Define money.

B. State 4 functions of money with explanations.

 

QUESTION 4

A. What do you understand by distributive trade?

B. Illustrate the channel of distribution in 5 different ways