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