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