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ECONOMICS SS1 2ND TERM EXAMINATION
Contributed by: Onosue
  • 1. A firm is best described as
A) a market structure
B) an independently administered business unit engaged in production or distribution
C) a group of consumers
D) a government agency
  • 2. The exchange of goods for goods without the use of money is known as
A) credit system
B) commodity trading
C) barter 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) over population
D) under population
  • 4. Payment made to workers on a monthly basis is known as
A) salary
B) commission
C) bonus
D) wages
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Tertiary sector
B) Service sector
C) Primary sector
D) Secondary sector
  • 6. The Central Bank of Nigeria is an example of a
A) thrift collector
B) informal financial institution
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) marketing structure
D) channel of distribution
  • 8. Which of the following is an example of a service industry?
A) Tourism
B) Manufacturing
C) Agriculture
D) Mining
  • 9. Real wages refer to
A) government salary scale
B) the total money earned
C) money paid daily
D) the purchasing power of wages
  • 10. Mining involves
A) transporting goods
B) farming crops
C) extracting minerals from the earth
D) selling products
  • 11. The supply of labour refers to
A) government workers
B) number of people willing and able to work at a given wage rate
C) number of employers in a country
D) number of machines used in production
  • 12. An example of a retailer is a
A) shop owner selling goods to final consumers
B) wholesaler
C) manufacturer
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) it produces only agricultural goods
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) subsistence farming
B) shifting cultivation
C) pastoral farming
D) mixed farming
  • 15. The function of money as a store of value means that money
A) measures prices
B) is used for exchange
C) can be saved for future use
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) agent
B) broker
C) retailer
D) wholesaler
  • 18. An example of a mineral resource found in Nigeria is
A) rubber
B) tin
C) cocoa
D) maize
  • 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) Commercial Bank
B) Esusu / Ajo
C) Insurance company
D) Opay
  • 21. The main aim of commercial agriculture is to
A) produce crops for sale and profit
B) reduce labour
C) practice traditional farming
D) produce food for family consumption
  • 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 wages only
D) depends on the demand for goods and services produced
  • 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) a short-term loan from banks
C) ownership of a company
D) money saved in banks
  • 25. An industry concerned with extracting natural resources is known as
A) manufacturing industry
B) construction industry
C) extractive industry
D) service industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) Low population
B) Dependence on crude oil
C) Low agricultural activities
D) High industrialization
  • 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) providing food and raw materials
C) increasing imports
D) destroying forests
  • 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) better communication
B) increase in price of goods
C) improved storage
D) faster distribution
  • 31. An example of producer goods is
A) cosmetics
B) machinery
C) food grains
D) clothing
  • 32. A share represents
A) ownership in a company
B) a loan to government
C) bank deposit
D) business debt
  • 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) increased poverty
B) unemployment
C) provision of labour force
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) commodity money
C) labour market
D) banking system
  • 37. The labour market is a place where
A) money is stored
B) goods are exchanged
C) workers and employers meet to agree on conditions of work
D) machines are produced
  • 38. 38 Pastoral farming mainly involves
A) rearing of animals
B) fishing
C) forestry
D) crop production
  • 39. One role of the private sector in the economy is
A) issuing currency
B) controlling population
C) production of goods and services
D) regulating industries
  • 40. The informal sector includes
A) government ministries
B) petty traders and artisans
C) commercial banks
D) insurance companies
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