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