ECONOMICS SS1 2ND TERM EXAMINATION
  • 1. A firm is best described as
A) an independently administered business unit engaged in production or distribution
B) a group of consumers
C) a government agency
D) a market structure
  • 2. The exchange of goods for goods without the use of money is known as
A) money economy
B) commodity trading
C) barter system
D) credit system
  • 3. A population that is too large for the available resources is known as
A) under population
B) optimum population
C) balanced population
D) over population
  • 4. Payment made to workers on a monthly basis is known as
A) bonus
B) commission
C) salary
D) wages
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Service sector
  • 6. The Central Bank of Nigeria is an example of a
A) cooperative society
B) thrift collector
C) formal financial institution
D) informal financial institution
  • 7. The route through which goods move from producers to consumers is called
A) marketing structure
B) consumer network
C) channel of distribution
D) trade union
  • 8. Which of the following is an example of a service industry?
A) Tourism
B) Mining
C) Manufacturing
D) Agriculture
  • 9. Real wages refer to
A) money paid daily
B) the purchasing power of wages
C) government salary scale
D) the total money earned
  • 10. Mining involves
A) farming crops
B) transporting goods
C) selling products
D) extracting minerals from the earth
  • 11. The supply of labour refers to
A) government workers
B) number of people willing and able to work at a given wage rate
C) number of employers in a country
D) number of machines used in production
  • 12. An example of a retailer is a
A) manufacturer
B) shop owner selling goods to final consumers
C) wholesaler
D) farmer
  • 13. The Nigerian economy is described as a mixed economy because
A) it produces only agricultural goods
B) both government and private individuals participate in economic activities
C) only individuals control production
D) only the government controls production
  • 14. The type of agriculture where crops and animals are produced together is called
A) subsistence farming
B) shifting cultivation
C) mixed farming
D) pastoral farming
  • 15. The function of money as a store of value means that money
A) is used for exchange
B) is used for payment of debts
C) measures prices
D) can be saved for future use
  • 16. A population that gives the highest output per head when combined with available resources is known as
A) under population
B) optimum population
C) dense population
D) over population
  • 17. A middleman who buys goods in large quantities from producers and sells to retailers is known as
A) retailer
B) agent
C) broker
D) wholesaler
  • 18. An example of a mineral resource found in Nigeria is
A) tin
B) maize
C) cocoa
D) rubber
  • 19. Nominal wages refer to
A) purchasing power of labour
B) bonus received by workers
C) profits earned
D) the actual money paid to labour
  • 20. An example of an informal financial institution is
A) Esusu / Ajo
B) Insurance company
C) Commercial Bank
D) Opay
  • 21. The main aim of commercial agriculture is to
A) reduce labour
B) produce food for family consumption
C) practice traditional farming
D) produce crops for sale and profit
  • 22. The demand for labour is known as a derived demand because it
A) depends on population size
B) depends on the demand for goods and services produced
C) depends on wages only
D) depends on government policy
  • 23. Which of the following is a function of financial institutions?
A) Mining minerals
B) Manufacturing goods
C) Mobilization of savings
D) Selling money and valuables
  • 24. A bond is
A) a written promise to repay borrowed money with interest
B) money saved in banks
C) a short-term loan from banks
D) ownership of a company
  • 25. An industry concerned with extracting natural resources is known as
A) extractive industry
B) manufacturing industry
C) construction industry
D) service industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) High industrialization
B) Dependence on crude oil
C) Low population
D) Low agricultural activities
  • 27. The main activity of the tertiary sector is
A) farming
B) mining
C) manufacturing
D) providing services
  • 28. Agriculture contributes to the economy by
A) reducing employment
B) providing food and raw materials
C) destroying forests
D) increasing imports
  • 29. The removal of minerals close to the earth surface is known as
A) placer mining
B) drilling
C) surface mining
D) shaft mining
  • 30. One disadvantage of having many middlemen is
A) increase in price of goods
B) improved storage
C) faster distribution
D) better communication
  • 31. An example of producer goods is
A) cosmetics
B) food grains
C) machinery
D) clothing
  • 32. A share represents
A) ownership in a company
B) bank deposit
C) business debt
D) a loan to government
  • 33. The payment made regularly to debenture holders is known as
A) interest
B) salary
C) commission
D) dividend
  • 34. One importance of population to a country is
A) increased poverty
B) environmental pollution
C) unemployment
D) provision of labour force
  • 35. The sector that processes raw materials into finished goods is
A) primary sector
B) informal sector
C) tertiary sector
D) secondary sector
  • 36. One stage in the evolution of money is
A) labour market
B) cooperative trading
C) banking system
D) commodity money
  • 37. The labour market is a place where
A) goods are exchanged
B) workers and employers meet to agree on conditions of work
C) machines are produced
D) money is stored
  • 38. 38 Pastoral farming mainly involves
A) forestry
B) fishing
C) rearing of animals
D) crop production
  • 39. One role of the private sector in the economy is
A) production of goods and services
B) controlling population
C) regulating industries
D) issuing currency
  • 40. The informal sector includes
A) insurance companies
B) commercial banks
C) petty traders and artisans
D) government ministries
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