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ECONOMICS SS1 2ND TERM EXAMINATION
Contributed by: Onosue
  • 1. A firm is best described as
A) an independently administered business unit engaged in production or distribution
B) a group of consumers
C) a market structure
D) a government agency
  • 2. The exchange of goods for goods without the use of money is known as
A) barter system
B) credit system
C) commodity trading
D) money economy
  • 3. A population that is too large for the available resources is known as
A) under population
B) over population
C) optimum population
D) balanced population
  • 4. Payment made to workers on a monthly basis is known as
A) salary
B) wages
C) bonus
D) commission
  • 5. Which of the following sectors extracts natural resources from the earth?
A) Service sector
B) Secondary sector
C) Tertiary sector
D) Primary sector
  • 6. The Central Bank of Nigeria is an example of a
A) thrift collector
B) cooperative society
C) informal financial institution
D) formal financial institution
  • 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) Agriculture
C) Tourism
D) Manufacturing
  • 9. Real wages refer to
A) government salary scale
B) money paid daily
C) the total money earned
D) the purchasing power of wages
  • 10. Mining involves
A) farming crops
B) transporting goods
C) extracting minerals from the earth
D) selling products
  • 11. The supply of labour refers to
A) number of people willing and able to work at a given wage rate
B) number of employers in a country
C) number of machines used in production
D) government workers
  • 12. An example of a retailer is a
A) manufacturer
B) wholesaler
C) shop owner selling goods to final consumers
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) subsistence farming
C) shifting cultivation
D) pastoral farming
  • 15. The function of money as a store of value means that money
A) can be saved for future use
B) is used for exchange
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) over population
B) dense population
C) optimum population
D) under 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) cocoa
B) rubber
C) maize
D) tin
  • 19. Nominal wages refer to
A) profits earned
B) the actual money paid to labour
C) purchasing power of labour
D) bonus received by workers
  • 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) practice traditional farming
B) produce food for family consumption
C) produce crops for sale and profit
D) reduce labour
  • 22. The demand for labour is known as a derived demand because it
A) depends on wages only
B) depends on government policy
C) depends on population size
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) Mining minerals
C) Selling money and valuables
D) Manufacturing goods
  • 24. A bond is
A) ownership of a company
B) money saved in banks
C) a short-term loan from banks
D) a written promise to repay borrowed money with interest
  • 25. An industry concerned with extracting natural resources is known as
A) construction industry
B) service industry
C) extractive industry
D) manufacturing industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) Dependence on crude oil
B) Low population
C) Low agricultural activities
D) High industrialization
  • 27. The main activity of the tertiary sector is
A) farming
B) manufacturing
C) mining
D) providing services
  • 28. Agriculture contributes to the economy by
A) increasing imports
B) providing food and raw materials
C) reducing employment
D) destroying forests
  • 29. The removal of minerals close to the earth surface is known as
A) placer mining
B) drilling
C) surface mining
D) shaft mining
  • 30. One disadvantage of having many middlemen is
A) faster distribution
B) better communication
C) increase in price of goods
D) improved storage
  • 31. An example of producer goods is
A) food grains
B) clothing
C) machinery
D) cosmetics
  • 32. A share represents
A) ownership in a company
B) bank deposit
C) business debt
D) a loan to government
  • 33. The payment made regularly to debenture holders is known as
A) commission
B) interest
C) salary
D) dividend
  • 34. One importance of population to a country is
A) increased poverty
B) environmental pollution
C) unemployment
D) provision of labour force
  • 35. The sector that processes raw materials into finished goods is
A) secondary sector
B) tertiary sector
C) primary sector
D) informal sector
  • 36. One stage in the evolution of money is
A) banking system
B) commodity money
C) cooperative trading
D) labour market
  • 37. The labour market is a place where
A) money is stored
B) goods are exchanged
C) machines are produced
D) workers and employers meet to agree on conditions of work
  • 38. 38 Pastoral farming mainly involves
A) forestry
B) rearing of animals
C) fishing
D) crop production
  • 39. One role of the private sector in the economy is
A) production of goods and services
B) issuing currency
C) regulating industries
D) controlling population
  • 40. The informal sector includes
A) petty traders and artisans
B) commercial banks
C) insurance companies
D) government ministries
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