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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) choice
C) wants
D) resource
  • 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) How to balance the needs of the economy with society and the environment
D) The allocation of resources among competing wants because there are unlimited wants limited resources
  • 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) Implicit cost
D) Alternate forgone
  • 4. Scale of preference refers to?
A) list of goods and services in order of priority
B) the household monthly income
C) consumers preference for luxury goods
D) budget perparation without paying due regard to priority
  • 5. The concept of choice in Economics refers to
A) None of the above
B) ranking of wants in an ascending order
C) selection of most pressing wants out of a range of alternatives
D) separating defective commodities from non-defective ones
  • 6. Which of the following best explains what to produce?
A) The combination of resources to be used
B) How many wants are to be satisfied
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) efficiency of resource use
B) for whom to produce
C) how to produce
D) scale of production
  • 8. The basic problem concerned with production techniques is
A) how to produce
B) where to produce
C) none
D) efficient use if resources
  • 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) making rational
B) making optimum allocation of resources
C) using scarce resources efficiently
D) satisfying wants
  • 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) Alfred Marshal
B) Bill Gates
C) Adam Smith
D) A.C Pigou
  • 13. Economics belong to a group of subject called
A) Physical sciences
B) None of the above
C) National sciences
D) Social 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) Financial prudence
B) Expression of cost
C) An insatiable desire of need by human being
D) Limited supply of resources
  • 16. Who defined economics as the science of material welfare
A) A.C Pigou
B) Mr Bean
C) Lionel C Robbins
D) John Stuart Mill
  • 17. Alfred Marshal defined economics as the study of
A) Wealth
B) None
C) Production and distribution
D) Mankind
  • 18. __refers to the level of involvement of labour and machines
A) Technique of production
B) Production function
C) Technological advancement
D) Factors of production
  • 19. The two techniques of production are
A) Wants and needs
B) Choice and scarcity
C) Labour and capital intensive
D) Demand and supply
  • 20. Which of the following is not a factor of production
A) labour
B) capital
C) land
D) machine
  • 21. The limited supply of resources which are used for the satisfaction of human wants is
A) Choice
B) Scarcity
C) Wants
D) Needs
  • 22. The following are the basic concepts of economics except
A) Opportunity cost
B) Choice
C) Resources
D) Wants
  • 23. Which of the following is not a scientific method being adopted in economics
A) Observation
B) Collecting of data
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) A.C pigou
D) H.J davenport
  • 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) Alfred Marshal
D) Lauren johnson
  • 26. Which technique employs more labor and less capital equipment and machines
A) Labour and capital intensive
B) None
C) 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) Simple bar chart
B) Multiple bar chart
C) All of the above
D) Component bar chart
  • 29. Which is used when data involved are of two variables
A) Component bar chart
B) None
C) Multiple bar chart
D) Simple bar chart
  • 30. A simple circle of any convenient size which is divided into sections or sectors is
A) Bar chart
B) Pie charts
C) Multiple bar chart
D) Single bar chart
  • 31. A line used for data where emphasis is on a continuous change is
A) Charts
B) Line graph
C) All of the above
D) Table
  • 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) They must have a title
D) The must be numbered
  • 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) 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) 100 degree
C) 108 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) 75 degree
D) 80 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) 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) Government policies
B) Stages of development
C) Capital
D) Entrepreneur ability
  • 40. A type of business or organization which is owned, controlled and managed by the government is
A) None of the above
B) Private enterprises
C) Joint ventureship
D) Public enterprises
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