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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 government agency
C) a market structure
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) 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) under population
C) over population
D) optimum 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) Tertiary sector
B) Service sector
C) Secondary 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) consumer network
B) trade union
C) channel of distribution
D) marketing structure
  • 8. Which of the following is an example of a service industry?
A) Tourism
B) Manufacturing
C) Mining
D) Agriculture
  • 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) extracting minerals from the earth
B) transporting goods
C) selling products
D) farming crops
  • 11. The supply of labour refers to
A) number of machines used in production
B) government workers
C) number of employers in a country
D) number of people willing and able to work at a given wage rate
  • 12. An example of a retailer is a
A) farmer
B) manufacturer
C) wholesaler
D) shop owner selling goods to final consumers
  • 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) pastoral farming
C) mixed farming
D) shifting cultivation
  • 15. The function of money as a store of value means that money
A) is used for payment of debts
B) is used for exchange
C) measures prices
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) under population
B) dense 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) broker
B) agent
C) wholesaler
D) retailer
  • 18. An example of a mineral resource found in Nigeria is
A) rubber
B) maize
C) cocoa
D) tin
  • 19. Nominal wages refer to
A) purchasing power of labour
B) profits earned
C) the actual money paid to labour
D) bonus received by workers
  • 20. An example of an informal financial institution is
A) Insurance company
B) Esusu / Ajo
C) Opay
D) Commercial Bank
  • 21. The main aim of commercial agriculture is to
A) produce food for family consumption
B) produce crops for sale and profit
C) reduce labour
D) practice traditional farming
  • 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 population size
C) depends on government policy
D) depends on wages only
  • 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) a short-term loan from banks
B) money saved in banks
C) a written promise to repay borrowed money with interest
D) ownership of a company
  • 25. An industry concerned with extracting natural resources is known as
A) extractive industry
B) manufacturing industry
C) construction industry
D) service industry
  • 26. Which of the following is a feature of the Nigerian economy?
A) Low agricultural activities
B) Low population
C) High industrialization
D) Dependence on crude oil
  • 27. The main activity of the tertiary sector is
A) mining
B) providing services
C) farming
D) manufacturing
  • 28. Agriculture contributes to the economy by
A) reducing employment
B) destroying forests
C) providing food and raw materials
D) increasing imports
  • 29. The removal of minerals close to the earth surface is known as
A) drilling
B) placer mining
C) surface mining
D) shaft mining
  • 30. One disadvantage of having many middlemen is
A) faster distribution
B) increase in price of goods
C) improved storage
D) better communication
  • 31. An example of producer goods is
A) cosmetics
B) machinery
C) clothing
D) food grains
  • 32. A share represents
A) bank deposit
B) ownership in a company
C) business debt
D) a loan to government
  • 33. The payment made regularly to debenture holders is known as
A) commission
B) interest
C) dividend
D) salary
  • 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) commodity money
B) banking system
C) labour market
D) cooperative trading
  • 37. The labour market is a place where
A) machines are produced
B) workers and employers meet to agree on conditions of work
C) goods are exchanged
D) money is stored
  • 38. 38 Pastoral farming mainly involves
A) fishing
B) crop production
C) rearing of animals
D) forestry
  • 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) petty traders and artisans
B) insurance companies
C) commercial banks
D) government ministries
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