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