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ECONOMICS SS1 2ND TERM EXAMINATION
Contributed by: Onosue
  • 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) money economy
B) credit system
C) commodity trading
D) barter system
  • 3. A population that is too large for the available resources is known as
A) optimum population
B) under population
C) over population
D) balanced population
  • 4. Payment made to workers on a monthly basis is known as
A) bonus
B) wages
C) commission
D) salary
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Primary sector
B) Service sector
C) Tertiary sector
D) Secondary sector
  • 6. The Central Bank of Nigeria is an example of a
A) formal financial institution
B) informal financial institution
C) cooperative society
D) thrift collector
  • 7. The route through which goods move from producers to consumers is called
A) channel of distribution
B) trade union
C) consumer network
D) marketing structure
  • 8. Which of the following is an example of a service industry?
A) Mining
B) Manufacturing
C) Tourism
D) Agriculture
  • 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) transporting goods
C) selling products
D) farming crops
  • 11. The supply of labour refers to
A) number of employers in a country
B) government workers
C) number of machines used in production
D) number of people willing and able to work at a given wage rate
  • 12. An example of a retailer is a
A) shop owner selling goods to final consumers
B) farmer
C) manufacturer
D) wholesaler
  • 13. The Nigerian economy is described as a mixed economy because
A) only the government controls production
B) both government and private individuals participate in economic activities
C) it produces only agricultural goods
D) only individuals control production
  • 14. The type of agriculture where crops and animals are produced together is called
A) subsistence farming
B) shifting cultivation
C) mixed farming
D) pastoral farming
  • 15. The function of money as a store of value means that money
A) is used for exchange
B) measures prices
C) is used for payment of debts
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) under population
C) dense 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) maize
B) cocoa
C) tin
D) rubber
  • 19. Nominal wages refer to
A) the actual money paid to labour
B) bonus received by workers
C) profits earned
D) purchasing power of labour
  • 20. An example of an informal financial institution is
A) Commercial Bank
B) Insurance company
C) Opay
D) Esusu / Ajo
  • 21. The main aim of commercial agriculture is to
A) produce crops for sale and profit
B) practice traditional farming
C) produce food for family consumption
D) reduce labour
  • 22. The demand for labour is known as a derived demand because it
A) depends on the demand for goods and services produced
B) depends on wages only
C) depends on government policy
D) depends on population size
  • 23. Which of the following is a function of financial institutions?
A) Selling money and valuables
B) Manufacturing goods
C) Mobilization of savings
D) Mining minerals
  • 24. A bond is
A) money saved in banks
B) a short-term loan from banks
C) ownership of a company
D) a written promise to repay borrowed money with interest
  • 25. An industry concerned with extracting natural resources is known as
A) extractive industry
B) construction industry
C) manufacturing industry
D) service industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) Dependence on crude oil
B) Low population
C) High industrialization
D) Low agricultural activities
  • 27. The main activity of the tertiary sector is
A) mining
B) farming
C) providing services
D) manufacturing
  • 28. Agriculture contributes to the economy by
A) increasing imports
B) reducing employment
C) destroying forests
D) providing food and raw materials
  • 29. The removal of minerals close to the earth surface is known as
A) surface mining
B) shaft mining
C) placer mining
D) drilling
  • 30. One disadvantage of having many middlemen is
A) better communication
B) faster distribution
C) improved storage
D) increase in price of goods
  • 31. An example of producer goods is
A) machinery
B) food grains
C) clothing
D) cosmetics
  • 32. A share represents
A) bank deposit
B) ownership in a company
C) a loan to government
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) environmental pollution
D) provision of labour force
  • 35. The sector that processes raw materials into finished goods is
A) primary sector
B) tertiary sector
C) secondary sector
D) informal sector
  • 36. One stage in the evolution of money is
A) commodity money
B) banking system
C) cooperative trading
D) labour market
  • 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) rearing of animals
B) forestry
C) crop production
D) fishing
  • 39. One role of the private sector in the economy is
A) regulating industries
B) controlling population
C) production of goods and services
D) issuing currency
  • 40. The informal sector includes
A) government ministries
B) insurance companies
C) petty traders and artisans
D) commercial banks
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