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PES SS 1 Economics Term 1 Exam 2025-2026
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  • 1. Economics is a science which studies human behaviours as a relationship between ends and scarce means which have alternative uses. 'Ends' her refers to
A) output
B) wants
C) choice
D) resource
  • 2. What is the fundamental problem of economics as a discipline?
A) The allocation of resources among competing wants because there are unlimited wants limited resources
B) How to ensure continuous economic growth in the face of uncertainty
C) None
D) How to balance the needs of the economy with society and the environment
  • 3. Opportunity cost is a term which describe
A) Cost related to an optimum level of production
B) The monetary equivalent of the utility of commodity
C) Implicit cost
D) Alternate forgone
  • 4. Scale of preference refers to?
A) budget perparation without paying due regard to priority
B) consumers preference for luxury goods
C) list of goods and services in order of priority
D) the household monthly income
  • 5. The concept of choice in Economics refers to
A) None of the above
B) selection of most pressing wants out of a range of alternatives
C) separating defective commodities from non-defective ones
D) ranking of wants in an ascending order
  • 6. Which of the following best explains what to produce?
A) How many wants are to be satisfied
B) The combination of resources to be used
C) Which goods and services to be produced
D) How much goods are to be produced
  • 7. Which of these is NOT a basic economic problem of society?
A) for whom to produce
B) scale of production
C) how to produce
D) efficiency of resource use
  • 8. The basic problem concerned with production techniques is
A) efficient use if resources
B) how to produce
C) where to produce
D) none
  • 9. What is the result of unlimited wants and limited resources
A) scarcity
B) wants
C) choice
D) none of the above
  • 10. Scale of preference is important for the following reasons except in
A) satisfying wants
B) using scarce resources efficiently
C) making optimum allocation of resources
D) making rational
  • 11. Which of the following factors does not determine the size of a firm
A) Government policies
B) Capital
C) Illiteracy
D) The market
  • 12. Who defined economics as the science of wealth
A) A.C Pigou
B) Bill Gates
C) Alfred Marshal
D) Adam Smith
  • 13. Economics belong to a group of subject called
A) Social sciences
B) National sciences
C) None of the above
D) Physical sciences
  • 14. Which of the following is not a scientific method of economics
A) Observation
B) Formulation of hypothesis
C) Wants
D) Collection of data
  • 15. Wants can be defined as
A) An insatiable desire of need by human being
B) Financial prudence
C) Limited supply of resources
D) Expression of cost
  • 16. Who defined economics as the science of material welfare
A) A.C Pigou
B) Lionel C Robbins
C) Mr Bean
D) John Stuart Mill
  • 17. Alfred Marshal defined economics as the study of
A) Production and distribution
B) Mankind
C) None
D) Wealth
  • 18. __refers to the level of involvement of labour and machines
A) Technological advancement
B) Technique of production
C) Production function
D) Factors of production
  • 19. The two techniques of production are
A) Demand and supply
B) Choice and scarcity
C) Labour and capital intensive
D) Wants and needs
  • 20. Which of the following is not a factor of production
A) land
B) labour
C) capital
D) machine
  • 21. The limited supply of resources which are used for the satisfaction of human wants is
A) Wants
B) Scarcity
C) Needs
D) Choice
  • 22. The following are the basic concepts of economics except
A) Wants
B) Choice
C) Opportunity cost
D) Resources
  • 23. Which of the following is not a scientific method being adopted in economics
A) Observation
B) Evaluation
C) Collecting of data
D) Formulating laws
  • 24. Which economist defined economics as the science of material welfare
A) A.C pigou
B) H.J davenport
C) None of the above
D) Adam Smith
  • 25. Economics was concerned with how people produce and distribute various goods and services that are required for the maintenance of human existence according to
A) John Stuart Mill
B) Lionel Robbins
C) Lauren johnson
D) Alfred Marshal
  • 26. Which technique employs more labor and less capital equipment and machines
A) Labour intensive
B) None
C) Capital intensive
D) Labour and capital intensive
  • 27. A graph made up of bars of rectangles which are of equal width and whose lengths are proportional to the quantities they represent is
A) Pictogram
B) Histogram
C) Pie chart
D) Bars Charts
  • 28. What type of chart is used when the data given are made up of only one item or component
A) Simple bar chart
B) Component bar chart
C) All of the above
D) Multiple bar chart
  • 29. Which is used when data involved are of two variables
A) Simple bar chart
B) None
C) Multiple bar chart
D) Component bar chart
  • 30. A simple circle of any convenient size which is divided into sections or sectors is
A) Pie charts
B) Single bar chart
C) Multiple bar chart
D) Bar chart
  • 31. A line used for data where emphasis is on a continuous change is
A) Line graph
B) Table
C) All of the above
D) Charts
  • 32. Which of the following is not a feature of a graph
A) They must have a title
B) The must be numbered
C) Graph must possess appropriate scales
D) They must be labeled properly for better understanding
  • 33. A systematic and orderly arrangement of information, facts or data using rows and columns for presentation
A) Graph
B) Table
C) Charts
D) None
  • 34. Which if the following is not a tool for economic analysis
A) Pictogram
B) Variable
C) Graph
D) Table
  • 35. If the amount of 30 million naira was being received by the health sector out of a total of 100 million naira, what degree of it would be represented on a pie chart
A) 90 degree
B) 108 degree
C) 100 degree
D) 105 degree
  • 36. If the amount of 20 million naira was being received by the Agricultural sector out of a total of 100 million naira, what degree of it would be represented on a pie chart
A) 85 degree
B) 72 degree
C) 80 degree
D) 75 degree
  • 37. The pie chart is measured with the aid of a mathematical device called a
A) None
B) Protractor
C) Compass
D) Both
  • 38. Which of the following factors does not determine the type of business units
A) Problem of market limitation
B) The return on investment
C) Availability of capital
D) The payback period
  • 39. The following factors determine the size of a firm except
A) Entrepreneur ability
B) Capital
C) Stages of development
D) Government policies
  • 40. A type of business or organization which is owned, controlled and managed by the government is
A) Joint ventureship
B) None of the above
C) Private enterprises
D) Public enterprises
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