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) barter system
B) money economy
C) credit system
D) commodity trading
  • 3. A population that is too large for the available resources is known as
A) over population
B) under population
C) optimum population
D) balanced population
  • 4. Payment made to workers on a monthly basis is known as
A) commission
B) salary
C) wages
D) bonus
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Tertiary sector
B) Secondary sector
C) Primary sector
D) Service sector
  • 6. The Central Bank of Nigeria is an example of a
A) informal financial institution
B) thrift collector
C) cooperative society
D) formal financial institution
  • 7. The route through which goods move from producers to consumers is called
A) consumer network
B) channel of distribution
C) trade union
D) marketing structure
  • 8. Which of the following is an example of a service industry?
A) Tourism
B) Manufacturing
C) Mining
D) Agriculture
  • 9. Real wages refer to
A) the purchasing power of wages
B) the total money earned
C) government salary scale
D) money paid daily
  • 10. Mining involves
A) selling products
B) farming crops
C) extracting minerals from the earth
D) transporting goods
  • 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) number of employers in a country
D) government workers
  • 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) only individuals control production
B) only the government controls production
C) both government and private individuals participate in economic activities
D) it produces only agricultural goods
  • 14. The type of agriculture where crops and animals are produced together is called
A) mixed farming
B) shifting cultivation
C) subsistence farming
D) pastoral farming
  • 15. The function of money as a store of value means that money
A) can be saved for future use
B) measures prices
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) dense population
B) under 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) wholesaler
B) retailer
C) broker
D) agent
  • 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) profits earned
B) the actual money paid to labour
C) bonus received by workers
D) purchasing power of labour
  • 20. An example of an informal financial institution is
A) Insurance company
B) Esusu / Ajo
C) Commercial Bank
D) Opay
  • 21. The main aim of commercial agriculture is to
A) reduce labour
B) practice traditional farming
C) produce food for family consumption
D) produce crops for sale and profit
  • 22. The demand for labour is known as a derived demand because it
A) depends on government policy
B) depends on the demand for goods and services produced
C) depends on wages only
D) depends on population size
  • 23. Which of the following is a function of financial institutions?
A) Mining minerals
B) Mobilization of savings
C) Manufacturing goods
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) construction industry
B) service industry
C) manufacturing industry
D) extractive industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) High industrialization
B) Low population
C) Dependence on crude oil
D) Low agricultural activities
  • 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) destroying forests
C) increasing imports
D) providing food and raw materials
  • 29. The removal of minerals close to the earth surface is known as
A) surface mining
B) placer mining
C) drilling
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) clothing
B) food grains
C) cosmetics
D) machinery
  • 32. A share represents
A) business debt
B) bank deposit
C) a loan to government
D) ownership in a company
  • 33. The payment made regularly to debenture holders is known as
A) salary
B) interest
C) commission
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) informal sector
C) primary sector
D) secondary sector
  • 36. One stage in the evolution of money is
A) cooperative trading
B) labour market
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) rearing of animals
C) forestry
D) crop production
  • 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) petty traders and artisans
B) government ministries
C) insurance companies
D) commercial banks
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