Third Term Examination Economics SS 2 – Exam Questions








Objectives: Answer all questions. 

1. A shift in the demand curve indicates ___________.

(a) exceptional demand

(b) change in demand

(c) change in quantity demanded

(d) elasticity of demand


2. If there are no barriers to entering a market, it means that ___________.

(a) anyone can become a buyer or seller

(b) unwanted goods can always enter the market

(c) the market becomes a dumping ground

(d) the goods are not inspected


3. 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


4. MrIdowu needs a television set and a refrigerator. Each costs N500,the exact amount he has. MrIdowu buys the television set; the refrigerator would be regarded to as ___________.

(a) marginal cost



(b) inferior item

(c) opportunity cost

(d) prime cost


5. In economics, a market is defined as any ___________.

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

(b) agreement to sell all commodities at low prices

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

(d) arrangement whereby buyers and sellers are in contact


6. A budget is balanced when expected total revenue is ___________.

(a) greater than expected expenditure

(b) less than total expenditure

(c) equal to expected expenditure

(d) greater than total expenditure


7. An increase in the supply of a commodity X automatically results in an increase in the supply of another commodity Y. This is a case of ___________.

(a) elastic supply

(b) joint supply

(c) exceptional supply

(d) competitive supply


8. The introduction of tariffs and quotas ___________.

(a) reduce the price of imports

(b) increase the demand for locally made goods

(c) discourage domestic industries from becoming more efficient

(d) reduce the prices of locally made goods


9. A government that wants more revenue will increase the tax on commodities with ___________.

(a) high price elasticity of demand



(b) low price elasticity of demand

(c) high income elasticity of demand

(d) low income elasticity of demand


10. Which of the following is involved in the money market?

(a) building society

(b)development banks

(c) commercial banks

(d) stock exchange


11. Which of the following statements is a feature of a monopoly?

(a) Sellers are allowed to fix his own price.

(b) Buyers and sellers are price takers.

(c) new entrants are restricted.

(d) there is only one seller of the commodity.


12. A shift in the demand curve indicates ___________.

(a) exceptional demand

(b) change in demand

(c) change in quantity demanded

(d) elasticity of demand


13. 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


14. The demand curve for a commodity is downward sloping because the consumer will pay ___________.

(a) less as the marginal utility falls



(b) more as the marginal utility falls

(c) less as the total utility falls

(d) more as the average utility falls


15. Which of the following features best describes peasant agriculture in West Africa?

(a) specialises in the production of one crop.

(b) involves the use of small farm holdings.

(c) is a capital intensive system of farming.

(d) is mostly associated with tree crops.


16. An excise tax is imposed on goods ___________.

(a) smuggled into the country

(b) manufactured locally

(c) imported into the country

(d) seized by customs officials


17. The slope of a supply curve is ___________.

(a) horizontal

(b) uniform

(c) positive

(d) vertical


18. Equilibrium price is the price at which quantity ___________.

(a) demanded is greater than quantity supplied

(b) supplied is greater than quantity demanded

(c) demanded is equal to quantity supplied

(d) supplied equals quantity produced


19. one disadvantage of direct taxes is that they ___________.

(a) allocate scarce resources



(b) are not rigid

(c) can be progressive

(d) can be evaded


20. The demand and supply functions of a commodity are given below:

Qd = 20 – 2p

Qs = 6p -12

where P = price in naira, Qd = quantity demanded and Qs=quantity supplied.

The equilibrium price is ___________.

(a) 2 naira

(b) 4 naira

(c) 6 naira

(d) 20 naira


Get more Exam Questions for Economics – Third Term Examination Economics for SS Classes Links




Answer all questions. 


A. What is market?

B. Give two types of market according commodities sold in them.

C. Give two types of market according to channel of distribution.

D. Define perfect market.

D. Define imperfect market.



A. Outline four conditions necessary for a perfect competition.



B. Outline four conditions necessary for an imperfect competition.

C. What is a budget?

D. List and explain the types of budget.

E. Outline two uses of budget.



A. List and explain the systems of taxation.

B. Give two examples of direct tax.

C. Give two examples of indirect tax.



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