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