EXAMINATION FOR 2023/2024 SESSION

SUBJECT: ECONOMICS TERM: FIRST SCHOOL: COLLEGE

NAME: …………………………………….EXAM NO:……………………CLASS SS1 TIME:1 hour:30minutes
Answer all questions in this section
1. Economics is a social science which studies how A to distribute income B. human beings
behave C. the market price is fixed D. the scarce resources are allocated
2. The definition of economics as the practical science of production and distribution of wealth
A Adam Smith B. Alfred Marshall C. Irving Fisher D. John S. Mill
3. Human wants are A. limited B. scarce C. unlimited D. in grades
4. Scarcity in Economics means A. shortage of commodity B. unlimited demand for consumer
goods C. limited supply of available resources D. total absence of a commodity in the market
5. The action of the government to forgo road construction in order to provide more health
facilities denotes A. sound economic decisions B. opportunity cost C. practicable government
policies D. scale of preference
6. Which problem rises where there are one possible method of production? A. where to
produce B. for whom to produce C. how to produce D. what to produce
7. Data presented in tables are usually arranged in A. charts and graphs B. rows and columns C.
graphs and rows D. chart and columns
Use the figure below to answer question 8

8. The diagram in the figure above depicts A. simple bar chart B. complex bar chart C.
component bar chart D. multiple bar chart
9. Find the mean of the following numbers 5, 8, 6, 4, 9, 3, 8 and 9 A. 5 B. 6 C. 7 D. 8
10. Productive resources can also be called A. principle of production B. factors of production C.
items of production D. labour and material resources
11. Production covers all the following except A. utility is created B. a good is manufactured C. a
commodity is consumed D. individual wants are satisfied
12. Which of the following is a feature of a labour? A. fixed in supply B. indestructible C. it
reward is interest D. mobile
13. The reward of an entrepreneur in production is A. commission B. interest C. profit D. salaries
14. An increase in production as a result of combination of labour and other factors of
production is A. division of labour B. efficiency of labour C. labour force D. labour market
15. The study of economics enables individual to A. change job B. evade tax C. accumulate huge
wealth D. make rational decisions
16. Which of the following tools of economics analysis is used when data contains more than
one category A. bar chart B. component bar chart C. graphs D. symbolic statement
17. Mining is an example of A. tertiary production B. primary production C. secondary
production D. advanced production
18. Tertiary stage of production is concerned with A. conservation of raw materials B. extraction
of raw material C. provision of services D. construction of bridges
19. An example of capital goods is A. radio B. machinery C. shoes D. television
20. Goods which are meant for consumer immediate consumption are called A. producer goods
B. foreign goods C. locally made goods D. consumer goods
21. The money payment made to the owners of land are A rent B. wages C. interest D. dividend
22. Distribution is part of production because it A. makes goods and services available to the
final consumers B. transports the goods from place to place C. offers employment to people
D. encourage the provision of good roads, waterway and railway
23. A person who buys goods in small quantity and sell in bits is a A. manufacturer B. sales
representatives C. retailer D. consumer
24. The aim of production is to A. make profit B. allocate scarce resources C. satisfy human
wants D. development human capital
25. Individuals and institutions who enable goods produced reach the final consumers are called
A. price control board B. securities and exchange commission C. agents of distribution D.
corporate affairs commission
26. Those who make use of goods produced by a firm are called A. manufacturers B. retailers C.
consumers D. agent
27. Production is not complete until the goods gets to the A. consumer B. manufacturers C.
retailers D. agents
28. Distribution involves the A. movement of raw materials to production centres B. transfer of
goods and services from one market to another C. movement of goods and services by
middleman to urban centres D. transfer of goods and services from production centres to
consumer
29. The number with the highest frequency in a given set of data is called A mean B. median C.
mode D. variance

30. The formula for calculating the mean of an ungrouped data is written as A.

x−x
√ εfx B. εx C.
εf n
D. /x - x /
n
31. What is the range of the following set of data 5, 3, 1, 40 and 6 A. 11 B. 39 C. 53 D. 41
32. An example of skilled labour is A. gate keeper B. cleaner C. lawyer D. gardener
33. All except one of the following are engaged in primary production A farmer B. stock broker
C. fisherman D. miner
34. Economics is regarded as science because A. it studies the laws that governs human
behaviour B. uses scientific method to explain human behaviour C. makes use of controlled
experiments to explain human behaviour D. makes use of machine to study human
behaviour
35. Which of the following cannot be described as land? A. forest B. diamond C. roads D. crude
oil
36. A disadvantage of the mean as a measure of central tendency is that A. is affected by
extreme value B. can only be used for continuous data C. cannot be used to measure the
qualities of a population D. cannot be determined in group data
Use the table below to answer question 37 and 38
X 2 3 4 5
F 2 5 2 1
37. From the table, the mean of the distribution is A. 2.2 B. 2.5 C. 3.2 D. 4.5
38. What is the mode of the distribution? A. 3 B. 5 C. 2 D. 1
39. The middle number of an order set of data is called the A. mean derivation B. variance C.
mode D. median
40. The factor of production which takes the initiative in combining resource for production is
known as A. capital B. land C. entrepreneur D. labour

Theory (Section B)
Answer one question only from this section
1. The table below shows the age distribution of a hypothetical population
Age No of People (million)
Under 20 20.90
20 – 29 13.75
30 – 59 12.10
60 and above 8.25
Total 55
You are required to
a. Present the above information in the form of a pie chart

2. The raw scores of 20 students of utopia High School who took part in an examination in
Economics are given below. The pass mark is 40%.
38 28 70 43
39 20 64 66
12 46 52 53
20 34 48 49
18 20 64 34
a. Present the above data in frequency table
b. What is the mean score

Section C
Answer three questions only in this section
1. Explain the term factors of production
B. State four features of land

2. According to Lionel Robbins, define economics

B. State four reasons why we study economics

3. Explain each of the following terms

(a) Opportunity cost
(b) Scale of preference
(c) Choice
(d) Wants
(e) Frequency table

4. Write short on “Basic tools of Economic analysis”

B. Mention and explain three basic tolls of economic analysis
 EXAMINATION FOR 2023/2024 SESSION

SUBJECT: ECONOMICS TERM: FIRST SCHOOL: COLLEGE

NAME: …………………………………….EXAM NO:……………………CLASS SS2 TIME: 1 hour:45Minutes

Answer all questions in this section

1. A review of occupational distribution of population from time to tie helps us to know the
________ (a) Rate at which the population grows (b) number of people that make up the
labour force (c) efficiency of the working population (d) industries which are becoming less
important
2. Which of the following is not a feature of the sole proprietorship? (a) the sole proprietor
provides the capital to start the business (b) the sole proprietor is the boss of his business (c)
decision can be taken only by 10 people (d) there is unlimited liability
3. A condition which adversely affects expansion of production is (a) effective management (b)
limited size of the market (c) availability of funds (d) increase profit prospects
4. Which of the following is not an item of capital expenditure? (a) building of roads and
bridges (b) supply of electricity (c) payment of interest on load (d) building of dams
5. External economics occur when (a) industries are scattered all around (b) a firm decides to
expand (c) firms comprising an industry are concentrated in one area (d) a firm is located
near raw materials
6. Which of the following crops can be referred to as Nigeria’s current export crops (a) rubber,
groundnuts, beniseed, cotton (b) rubber, cocoa, coffee, palm kernel, sugar cane (c) palm oil,
palm kernel, sugar cane (d) soya beans, rice, groundnut, cashew nut
7. Subsistence farming means producing food (a) mainly for the need of our immediate and
extended family (b) crops for sale mainly (c) crops mainly for export (d) to feed the
community around
8. In economics, market is defined as (a) a place where buyers and sellers come together to
exchange goods (b) any arrangement made for consumers to buy all they need (c) any
arrangement made for producers to sell all their goods (d) any arrangement whereby the
buyers and sellers are in close touch with one another
9. All the following are source of finance to a joint stock company except (a) bank loan (b)
equity shares (c) c0-operative thrift (d) debentures
10. Which of the following is regarded as fixed cost? (a) cost of raw materials (b) cost of fuel (c)
cost of light (d) rent on land
11. Which of the following factors is not important in deciding the location of an industry? (a)
the native language of the people (b) availability of suitable labour (c) sources of cheap
power and raw materials (d) proximity to the market
12. One of the advantages of a sole proprietorship is that (a) risks are unlimited (b) technological
progress is often out of reach (c) shares and stocks can be issued to raise funds (d) initiative
can be use in all cases
13. The movement of a worker from one grade to another within the same industry is a form of
mobility of labour which is (a) geographical (b) vertical (c) occupational (d) horizontal
14. Which of these does not encourage industrial development? (a) tax exemption (b) provision
of financial institutions (c) provision of infrastructural facilities (d) limitation of market for
industrial products
15. Industry can simply be defined as (a) many firms producing different products (b) a firm or
firms producing similar goods and services (c) different firms producing different goods (d)
different firms producing equal number of similar goods and services
16. The reward of debentures holder of a public company is a fixed rate of (a) interest (b) return
(c) dividend (d) rent
17. The joint stock company can be a private company whose minimum membership is (a) 2 (b)
5 (c) 7 (d) 20
18. Which of the following are not agents of distribution? (a) wholesalers (b) retailers (c)
consumers (d) government agencies
19. When a business has unlimited liability (a) owners are not responsible for all its financial
debts (b) all its profits can be taxed by the government (c) the owners are responsible for all
its financial debts (d) all its assets belong to the members of its board of directors
20. Which of the following is a public corporation? (a) National Electric Power Authority (b)
Union Bank of Nigeria Plc (c) Volkswagen of Nigeria Plc (d) Roads Nigeria Plc
21. The price of a commodity is determined by (a) supplier (b) consumer (c) quantity of goods
demanded (d) interaction of demand and supply
22. Price control can be defined as the fixing by government or maximum of minimum prices of
(a) luxury goods (b) inferior goods 9c) imported goods (d) certain selected goods
23. The co-efficient of price elasticity of supply is one when supply is (a) elastic (b0 inelastic (c)
unity (d) zero elastic
24. Which of the following crops can be referred to as Nigeria’s current export crops (a) Rubber
and Groundnut (b) Rubber, Cocoa, Coffee and Palm kernel (c) Palm Oil and Sugar cane (d)
Soya beans, Rice and Cashew nut
25. The imposition of high income tax by government to cut down demand is known as (a)
monetary policy (b) budgetary policy (c) Fiscal policy (d) internal policy
26. Which of the following reasons explains the upward sloping supply curve in a competitive
market? (a) ceteris paribus, marginal cost increases as output increase (b) as new firms enter
the market, factor prices move up (c) firms are in business to satisfy consumers (d) marginal
cost often increases in a competitive market
27. A legal tender is any ______ (a) form of money (b) means of exchange authorised by the
state (c) commodity generally acceptable as a medium of exchange (d) total productivity of
labour
28. Which of the following hard currencies is usually used in the pricing of oil at the world
market particularly by the Organization of Petroleum Exporting Countries (OPEC) (a) Us
Dollar (b) Japanese (c) Pound Sterling (d) Naira
29. Fiscal policy is associated with (a) taxation and government expenditure (b) re-structuring of
the banks (c) injection of more money into the economy (d) reduction of economic activities
30. Which of the following serves as a banker’s bank? (a) commercial bank (b0 the mortgage
bank (c) the central bank (d) development bank
31. The type of demand that exists between torchlight and battery is (a) competitive demand (b)
complementary demand (c) composite demand (d) derived demand
 32. Public finance is basically an analysis of the (a) income and expenditure of government (b)
expenditure patterns of Government (c) current and capital receipts of government (d)
current and capital expenditure of government
33. The main objectives of specialization is to (a) allocate resources (b) limit workers’ skill (c)
increase the use of labour (d) increase in productivity
34. Agricultural plays a dominant role in our country because (a) it is the main source of energy
(b) it employs more than 50% of the total labour force (c) it supplies all industrial inputs (d)
there are large plantations of cocoa, groundnut and palm oil
35. Which of the following does not affect a country’s population? (a) Birth rate (b) Death rate
(c) Emigration (d) Unemployment
36. Monetary control measures are coordinated by (a) development bank (b) merchant bank (c)
commercial bank (d) central bank
37. To promote the development of the agricultural sector, Government of West African
countries should (a) encourage rural-urban drift (b) discourage foreign investment in
agriculture 9c) support the marketing of farm produce (d) reduce tariff on food imports
38. Revenue is the (a) total profit made after sales (b) amount spent on purchased (c) amount of
goods produced (d) total money realised from sales
39. The mechanism which allows the price of a commodity to be fixed either above or below the
equilibrium is known as (a) monopolistic competition (b) price discrimination (c) perfect
competitive market (d) price control
40. The market price of a commodity is normally determined by the (a) law of demand (b)
interaction of the forces of demand and supply (c) total number of people in the market 9d)
total quantity of the commodity in the market

Section A (Theory)
Answer One from this Section
1. Utility schedule:
Quality of goods Total utility Marginal utility

0 0 0
1 1 1
2 16 ?=
3 ?= 4
4 ?= ?=
5 23 1
6 23 ?=

(a) Complete the above utility schedule

(b) Draw the marginal utility curve
(c) At what quantity does TU equal MU?
ii. What is the value of MU when TU reaches the maximum?
iii. What happens to the values of TU as the quantity consumed increase?
iv. What happens to the values of MU as the quantity consumed increases?
2. The price of bread in year 2002 was increased from ₦40 to ₦50 and the quantity bought per
week by a consumer decreased from 160 loaves to 80 loaves
(a) Present the above data in a table
 (b) Calculate the co-efficient of price elasticity of demand
(c) What type of elasticity is this and how did you arrive at your conclusion

Section B
Answer any three (3) question from this section
3. What do you understand by “utility”
(b) State and explain basic concept of utility with the help of the diagrams
(c) State the relationship between total utility and marginal utility
4. Define demand
(b) State and explain type of demand
5. Explain the following with the aid of diagrams
i. Increase in quantity demanded
ii. Decrease in quantity demanded
iii. Increase in demand
iv. Decrease in demand
6. Define supply
(b) State 5 factors affecting supply
(c) State the laws of supply
 EXAMINATION FOR 2023/2024 SESSION

SUBJECT: ECONOMICS TERM: FIRST SCHOOL: COLLEGE

NAME: …………………………………….EXAM NO:……………………CLASS SS3 TIME: 1hr:30Mins

Answer all questions in this section

1. The fundamental economic problem in every society is (a) the large number of the
unemployed (b) inadequate supply of money (c) corruption and mismanagement (d) limited
supply of productive resources
2. A point X inside a production possibility curve indicates that (a) resources are fully utilized
(b) the country is poor (c) some resource are idle (d) resources are not available
3. The major employer of labour in developing countries is the (a) tertiary sector (b) secondary
sector (c) primary sector (d) industrial sector
4. The desire for profit is a major feature of (a) traditional economy (b) mixed economy (c)
market economy (d) command economy
5. The wages of a group of workers in dollars are stated below: 40, 30, 70, 20, 60, 10, 10, 80, 30
and 10. What is the mean wage? (a) 35 (b) 36 (c) 37 (d) 38
6. If the coefficient of price elasticity of demand of a product is zero, then its demand curve will
be (a) parallel to the quantity axis (b) parallel to the price axis (c) negatively sloped (d)
positively sloped
7. If the demand function is Qd = -0.5p + 20 calculate the quantity demanded when price is
₦15.00 (a) -₦27.00 (b) -₦12.50 (c) V12.50 (d) ₦27.50
8. If less of a good is bought as one’s income increases, such a good is (a) a normally good (b) a
luxury (c) a necessity (d) an inferior good
9. The demand for coffee and tea is (a) joint (b) competitive (c) composite (d) derived
10. What effect will an increase in the supply of fish have on the meat market? (a) a fall in
equilibrium price and quantity (b) an increase in equilibrium price and quantity (c) an
increase in equilibrium price and a fall in quantity (d) both equilibrium price and quantity
remain unchanged
11. Which of the following factors is not a condition for a change in supply of a commodity? (a)
improved technology (b) cost of production (c) the price of the commodity 9d) government
tax policies
12. Supply of agricultural products is likely to be elastic in the (a) intermediate period (b) long-
run (c) market period (d) short-run
13. Two commodities X and Y are in joint supply when (a) X is a by-product of Y (b) X and Y are
produced by the same firm (c) increase in quantity of X leads to decrease in Y (d) X and Y
cannot be produced in the same process
14.
Units of quantity Total utility Marginal quantity
consumed

1 10 10

2 15 5

3 17 2

4 18 1
 5 18 0

Table I above illustrates the law of (a) diminishing returns (b) diminishing marginal
productivity (c) diminishing marginal utility (d) variable proportion
15. When the price of a good is above the equilibrium, there will be (a) shortage (b) a surplus (c)
unemployment (d) inflation
16. What happens when a minimum price is imposed in a market? (a) shortage occurs (b)
surplus occurs (c) the market maintain its equilibrium (d) many firms will close down
17. When an increase in inputs leads to a more than proportionate increase in output, there is
(a) decreasing returns to scale (b) increase in marginal product 9c) increasing returns to scale
(d) constant returns to scale
18. The short-run in production is the time period when (a) techniques of production can easily
be changed (b) all factors are variable (c) at least a factor is fixed while others are variable
(d) variable factors cannot be changed
19.
Quantity (kg) Fixed cost Variable cost Total cost Marginal Average cost
(₦) (₦) (₦) cost (₦) (₦)

1 750 200 950 950

2 750 560 1310 360 655
3 750 900 P Q 550

Table II shows the short-run cost of a firm. Calculate the value of Q (a) ₦350 (b) ₦340 (c)
₦360 (d) ₦370
20. A cost of production that is positively related to output is the (a) total fixed cost (b) average
fixed cost (c) variable cost (d) social cost
21. In perfect competition, the average revenue curve of a firm is (a) below the marginal
revenue curve 9b) downward sloping (c) the marginal revenue curve (d) convex to the origin
22. Which of the following means of funding a business is very reliable and cheap? (a) bank
loans (b) loans from friends (c) plough back profits (d) debentures
23. Government in most cases influences location of firms to (a) discourage private investors
(b)ensure equitable distribution (c) reduce cost of production (d) make the firms enjoy
economies of scale
24. Middlemen are made up of (a) manufacturers, wholesalers and consumers (b)
manufacturers, wholesalers and retailer (c) wholesalers, retailers and hawkers
(d)wholesaler, retailers and consumers
25. The Malthusian theory of population was proved wrong because (a) the practice of
subsistence farming was encouraged (b) developing countries adopted birth control method
(c) new lands and new methods of production were discovered
26. Human development can be improved if (a) banks give more loans to businessmen (b) large
family sizes are encouraged (c) general education and training (d) it is handled by the private
sector only
27. The use of interest rates to control money supply is a (a) control policy (b) monetary policy
9c) development policy (d) fiscal policy
28. Agricultural productivity may be increased if (a) educational institutions are established in
rural areas (b) commercial banks are established in rural area (c) more infrastructural
facilities are provided in rural area (d) labour intensive method of agriculture is encouraged
29. A country is described as industrialized if (a) the contributions of industries to national
income is high (b) traditional and modern sectors coexist (c) the country adopts import
promotion strategy (d) primary industries dominate the economy
30. Which of the following is a major advantage of establishing a tomato-processing factory in a
country? (a) local consumption will decrease (b) more unskilled labour will be employed 9c)
foreign exchange will be conserved (d) it will attract more tourist
31. The total value of goods and services produced within the borders of a country is (a) net
national product (b) net domestic product (c) gross domestic product (d) gross national
product
32. Which of the following items is not considered as a transfer payment? (a) pension pay (b)
government subsidy (c) students’ grant (d) doctor’s salary
33. Which of the following factors will not underestimate the national income? (a) rapid
decrease in prices (b) increased subsistence production (c) practice of specialization of
labour (d) increase in value of services not paid for
34. Which of the following is true of the value of Money? It (a) is positively related to the price
level (b) depends on the value people attach to it (c) is determined by the government (d) is
inversely related to the price level
35. The motive for holding money to meet unforeseen events is termed (a) precautionary
demand (b) transactions demand (c) liquidity demand (d) speculative demand
36. An increase in the prices of factor inputs may result in (a) demand-pull inflation (b)
stagflation (c) open inflation (d) cost-push inflation
37. Insurance companies are similar to commercial banks in that they (a) compensate their
customers for losses (b) acts as lender of last resort (c) help in maintaining monetary
stability in a nation (d) help in mobilizing savings for investment
38. What happens when the central bank increases the bank rate? (a) amount of borrowing
increase (b) amount of borrowing decrease (c) supply of money increase (d) commercial
banks are not affected
39. Citizens are protected from government’s arbitrariness in taxation by the canon of (a)
elasticity (b) flexibility (c) economy (d) certainty
40. In a period of unemployment and falling prices, government should adopt a (a) zero-based
budget (b) budget deficit (c) balanced budget (d) surplus budget
41. In most developing countries, a large percentage of the labour force is engaged in (a) trading
(b) mining (c) agriculture (d) manufacturing
42. In most underdeveloped countries, development plans do not achieve their objectives due
to (a) poor coordination between local and national governments (b) exportation of more
primary products (c) lack of educational institutions in those countries (d) urban-rural
migration of citizens
43. Balance of trade involves exchange of (a) goods only (b) services only (c) goods and services
(d) goods and capital
44. An improvement in a country’s terms of trade means that the (a) nation can export more
services (b) nation’s receipts on export is equal to payments on imports (c) value of her
imports is lower than her exports (d) visible exports is less than visible imports
45. Devaluation of currency may not correct a balance of payment deficit if the demand for
export is (a) perfectly inelastic (b) perfectly elastic (c) fairly elastic (d) unitary elastic
46. One measure for financing a country’s balance of payment deficit is through (a) export
diversification (b) import substitution (c) short-term borrowing from IMF (d) internal
borrowing from commercial banks
47. The major achievement of the Economic Community of West African States (ECOWAS) is
that it has (a) made capital more mobile (b) made possible the use of common currency (c)
increased members allegiance to former colonial masters (d) widened the market for goods
produced
48. Which of the following institutions is concerned with expanding developing countries’
community trade? (a) World Trade Organization (WHO) (b) United Nations Conference on
 Trade and Development (UNCTAD) (c) Economic Commission for Africa (ECA) (d) African
Development Bank (AfDB)
49. Exploitation of forest resources becomes a major problem when (a) communities fight over
ownership (b) they are not renewed (c) they are neglected (d) the supply is fixed in the long
run
50. Natural resources that are renewable are found in the (a) mining sector (b) traditional sector
(c) agricultural sector (d) secondary sector

Theory (Section B)
Answer question one and any three questions in the section
1. The following figures are extracted from a schedule of demand and supply:
Price (₦) Quantity Quantity
demanded (Kg) supplied (kg)

9 1050 850
10 1000 1000
11 950 1150

(i) Calculate the elasticity of demand when price rises from ₦10 to ₦11
(ii) State whether the demand in (i) above is elastic or inelastic
(iii) Calculate the elasticity of supply when price falls from ₦10 to ₦9
(iv) State whether the supply in (iii) above is elastic or inelastic
2. Define the term “public finance”
(b) Itemize three (3) sources of government revenue you know
(c) List three (3) government expenditure of your country
3. Why do governments impose tax in your country
(b) explain each of the following types of taxes:
i. Proportional tax
ii. Progressive tax
iii. Regressive tax
(c) Define the term taxation
4. Discuss four (4) different types of agricultural systems that exist in West Africa
(b) Describe six (6) problems facing agriculture in Nigeria
5. Define the form budget
(b) List and explain types of budget you know
(c) Mention five (5) importance of budget you know