PES SS 1 Economics Term 1 Exam 2025-2026
  • 1. Economics is a science which studies human behaviours as a relationship between ends and scarce means which have alternative uses. 'Ends' her refers to
A) output
B) resource
C) choice
D) wants
  • 2. What is the fundamental problem of economics as a discipline?
A) How to ensure continuous economic growth in the face of uncertainty
B) The allocation of resources among competing wants because there are unlimited wants limited resources
C) None
D) How to balance the needs of the economy with society and the environment
  • 3. Opportunity cost is a term which describe
A) Implicit cost
B) Cost related to an optimum level of production
C) The monetary equivalent of the utility of commodity
D) Alternate forgone
  • 4. Scale of preference refers to?
A) consumers preference for luxury goods
B) the household monthly income
C) budget perparation without paying due regard to priority
D) list of goods and services in order of priority
  • 5. The concept of choice in Economics refers to
A) separating defective commodities from non-defective ones
B) selection of most pressing wants out of a range of alternatives
C) None of the above
D) ranking of wants in an ascending order
  • 6. Which of the following best explains what to produce?
A) How much goods are to be produced
B) How many wants are to be satisfied
C) The combination of resources to be used
D) Which goods and services to be produced
  • 7. Which of these is NOT a basic economic problem of society?
A) how to produce
B) for whom to produce
C) scale of production
D) efficiency of resource use
  • 8. The basic problem concerned with production techniques is
A) efficient use if resources
B) where to produce
C) how to produce
D) none
  • 9. What is the result of unlimited wants and limited resources
A) choice
B) wants
C) none of the above
D) scarcity
  • 10. Scale of preference is important for the following reasons except in
A) using scarce resources efficiently
B) making rational
C) making optimum allocation of resources
D) satisfying wants
  • 11. Which of the following factors does not determine the size of a firm
A) The market
B) Capital
C) Government policies
D) Illiteracy
  • 12. Who defined economics as the science of wealth
A) Alfred Marshal
B) Adam Smith
C) A.C Pigou
D) Bill Gates
  • 13. Economics belong to a group of subject called
A) Physical sciences
B) Social sciences
C) None of the above
D) National sciences
  • 14. Which of the following is not a scientific method of economics
A) Formulation of hypothesis
B) Wants
C) Collection of data
D) Observation
  • 15. Wants can be defined as
A) Limited supply of resources
B) Financial prudence
C) Expression of cost
D) An insatiable desire of need by human being
  • 16. Who defined economics as the science of material welfare
A) Mr Bean
B) John Stuart Mill
C) A.C Pigou
D) Lionel C Robbins
  • 17. Alfred Marshal defined economics as the study of
A) Mankind
B) None
C) Production and distribution
D) Wealth
  • 18. __refers to the level of involvement of labour and machines
A) Production function
B) Technique of production
C) Factors of production
D) Technological advancement
  • 19. The two techniques of production are
A) Choice and scarcity
B) Demand and supply
C) Wants and needs
D) Labour and capital intensive
  • 20. Which of the following is not a factor of production
A) capital
B) labour
C) machine
D) land
  • 21. The limited supply of resources which are used for the satisfaction of human wants is
A) Wants
B) Choice
C) Needs
D) Scarcity
  • 22. The following are the basic concepts of economics except
A) Choice
B) Resources
C) Opportunity cost
D) Wants
  • 23. Which of the following is not a scientific method being adopted in economics
A) Formulating laws
B) Collecting of data
C) Evaluation
D) Observation
  • 24. Which economist defined economics as the science of material welfare
A) A.C pigou
B) Adam Smith
C) H.J davenport
D) None of the above
  • 25. Economics was concerned with how people produce and distribute various goods and services that are required for the maintenance of human existence according to
A) John Stuart Mill
B) Alfred Marshal
C) Lionel Robbins
D) Lauren johnson
  • 26. Which technique employs more labor and less capital equipment and machines
A) None
B) Labour intensive
C) Labour and capital intensive
D) Capital intensive
  • 27. A graph made up of bars of rectangles which are of equal width and whose lengths are proportional to the quantities they represent is
A) Pie chart
B) Pictogram
C) Bars Charts
D) Histogram
  • 28. What type of chart is used when the data given are made up of only one item or component
A) All of the above
B) Component bar chart
C) Multiple bar chart
D) Simple bar chart
  • 29. Which is used when data involved are of two variables
A) Multiple bar chart
B) Simple bar chart
C) None
D) Component bar chart
  • 30. A simple circle of any convenient size which is divided into sections or sectors is
A) Pie charts
B) Bar chart
C) Single bar chart
D) Multiple bar chart
  • 31. A line used for data where emphasis is on a continuous change is
A) Line graph
B) Charts
C) Table
D) All of the above
  • 32. Which of the following is not a feature of a graph
A) They must be labeled properly for better understanding
B) Graph must possess appropriate scales
C) The must be numbered
D) They must have a title
  • 33. A systematic and orderly arrangement of information, facts or data using rows and columns for presentation
A) Charts
B) Graph
C) None
D) Table
  • 34. Which if the following is not a tool for economic analysis
A) Pictogram
B) Variable
C) Table
D) Graph
  • 35. If the amount of 30 million naira was being received by the health sector out of a total of 100 million naira, what degree of it would be represented on a pie chart
A) 90 degree
B) 105 degree
C) 108 degree
D) 100 degree
  • 36. If the amount of 20 million naira was being received by the Agricultural sector out of a total of 100 million naira, what degree of it would be represented on a pie chart
A) 75 degree
B) 80 degree
C) 72 degree
D) 85 degree
  • 37. The pie chart is measured with the aid of a mathematical device called a
A) None
B) Both
C) Compass
D) Protractor
  • 38. Which of the following factors does not determine the type of business units
A) The payback period
B) The return on investment
C) Availability of capital
D) Problem of market limitation
  • 39. The following factors determine the size of a firm except
A) Entrepreneur ability
B) Government policies
C) Stages of development
D) Capital
  • 40. A type of business or organization which is owned, controlled and managed by the government is
A) Public enterprises
B) Joint ventureship
C) Private enterprises
D) None of the above
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