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ECONOMICS SS1 2ND TERM EXAMINATION
Contributed by: Onosue
  • 1. A firm is best described as
A) a group of consumers
B) a market structure
C) a government agency
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) credit system
B) barter system
C) money economy
D) commodity trading
  • 3. A population that is too large for the available resources is known as
A) under population
B) balanced population
C) optimum population
D) over population
  • 4. Payment made to workers on a monthly basis is known as
A) commission
B) salary
C) bonus
D) wages
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Service sector
  • 6. The Central Bank of Nigeria is an example of a
A) cooperative society
B) thrift collector
C) formal financial institution
D) informal financial institution
  • 7. The route through which goods move from producers to consumers is called
A) trade union
B) consumer network
C) channel of distribution
D) marketing structure
  • 8. Which of the following is an example of a service industry?
A) Mining
B) Agriculture
C) Tourism
D) Manufacturing
  • 9. Real wages refer to
A) the total money earned
B) the purchasing power of wages
C) money paid daily
D) government salary scale
  • 10. Mining involves
A) selling products
B) transporting goods
C) extracting minerals from the earth
D) farming crops
  • 11. The supply of labour refers to
A) number of employers in a country
B) number of machines used in production
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) 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 individuals control production
B) both government and private individuals participate in economic activities
C) it produces only agricultural goods
D) only the government controls production
  • 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 exchange
B) can be saved for future use
C) measures prices
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) optimum population
D) over 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) maize
C) tin
D) cocoa
  • 19. Nominal wages refer to
A) purchasing power of labour
B) profits earned
C) bonus received by workers
D) the actual money paid to labour
  • 20. An example of an informal financial institution is
A) Opay
B) Esusu / Ajo
C) Commercial Bank
D) Insurance company
  • 21. The main aim of commercial agriculture is to
A) reduce labour
B) produce crops for sale and profit
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 government policy
B) depends on population size
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) Mining minerals
B) Selling money and valuables
C) Manufacturing goods
D) Mobilization of savings
  • 24. A bond is
A) a short-term loan from banks
B) ownership of a company
C) a written promise to repay borrowed money with interest
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) Dependence on crude oil
B) Low population
C) High industrialization
D) Low agricultural activities
  • 27. The main activity of the tertiary sector is
A) farming
B) providing services
C) manufacturing
D) mining
  • 28. Agriculture contributes to the economy by
A) increasing imports
B) destroying forests
C) providing food and raw materials
D) reducing employment
  • 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) increase in price of goods
B) better communication
C) improved storage
D) faster distribution
  • 31. An example of producer goods is
A) cosmetics
B) food grains
C) clothing
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) salary
B) interest
C) commission
D) dividend
  • 34. One importance of population to a country is
A) environmental pollution
B) provision of labour force
C) unemployment
D) increased poverty
  • 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) labour market
B) cooperative trading
C) commodity money
D) banking system
  • 37. The labour market is a place where
A) workers and employers meet to agree on conditions of work
B) machines are produced
C) goods are exchanged
D) money is stored
  • 38. 38 Pastoral farming mainly involves
A) crop production
B) rearing of animals
C) fishing
D) forestry
  • 39. One role of the private sector in the economy is
A) production of goods and services
B) regulating industries
C) issuing currency
D) controlling population
  • 40. The informal sector includes
A) government ministries
B) petty traders and artisans
C) insurance companies
D) commercial banks
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