3RD TERM MID TERM EXAM

SS1 ECONOMIC
OBJECTIVES
TIME: 1 ½ HRS.
1. The study of Economics enables the individuals to (a) be miserly in the spending of his
money (b) derive maximum satisfaction from the money he spent (c) avoid the purchase
of luxurious items (d) derive solutions to all problems.
2. One way of solving the problem of scarcity that faces individuals is for (a) the
government to import goods massively so that the citizens can get all they want. (b) Them
to work very hard so that they are able to buy all their wants. (c) Them to choose between
alternatives since they cannot meet all the their wants (d) them to use their resources as
they want.
3. The introduction of division of labour in a firm will lead to (a) a fall in output (b) a
decline in the efficiency of labour (c) an increase in output (d) the separation of
ownership from management.
4. External economics refers to the (a) cost-saving advantages a firm enjoys by being close
to other firms in the same industry (b) disadvantages to a firm that is close to other firms.
(c) economies of large scale production (d) cost-saving advantages a firm enjoys by
staying on its own.
5. To the economist, efficiency of resource use means (a) the maximum use of resources to
achieve minimum objective (b) the reduction of cost for adequate output (c) using
appropriate resources for desired wants (d) maximizing output from a given amount of
resources.
6. In a joint-stock company shareholders are the (a) owners (b) managers (c) chief executive
(d) day-to-day decision makers.
7. Which of the following best describes capital as a factor of production? (a) a natural
resource found everywhere. (b) a stock of physical assets used for production (c) the
organization of human and material resources for production (d) resources used in
training labour.
8. Productivity per worker is best measured by (a) total output less number of workers (b)
total output multiplied by number of workers. (c) total output divided by number of
workers (d) number of workers less total output.
9. A priority rating of aggregate individual wants is called: (a) Scarcity (b) Choice (c) Scale
of preference (d) opportunity cost.
10. Provision of services is classified under (a) primary production (b) tertiary production (c)
secondary production (d) production possibilities.
11. The most common form of business enterprises in West Africa is the (a) Sole
proprietorship (b) co-operative (c) partnership (d) joint stock company.
12. A collection of data which has not been processed is referred as (a) disjointed data (b)
class intervals (c) frequency (d) raw data.
13. Public enterprises are established mainly to (a) provide basic amenities for the people (b)
make goods available in the markets (c) make profit for the government (d) complete with
foreigners in the industrial sector.
14. The consumer’s co-operative society is owned by (a) a management committee (b)
members of the society (c) debenture holders (d) the government.
15. Which of the following is a function of the retailer? (a) provision of storage facilities (b)
Financing manufactures (c) stocking variety of goods (d) advertisement of goods.
16. Performance of one task in a production process is known as: (a) Specialization (b)
standardization (c) division of labour (d) segmentation.
17. Monoculture agriculture means: (a) the cultivation of seasonal crops (b) the cultivation of
one major crop (c) plantation agriculture (d) shifting cultivation.
18. Which of the following business units can issue shares? (a) Sole trader (b) central bank
(c) supermarket (d) private limited company.
19. The reward for shareholder ship of a com is (a) wages (b) interest (c) dividends (d) profit.
20. In a public corporation, the risks of business are borne by the (a) workers (b) tax payers
(c) board members (d) treasury.

SECTION B
 ANSWER FOUR (4) QUESTIONS ONLY
1a. What is channel of distribution?
b. State three (3) functions of wholesaler.
2a. List 5 problems of distribution and marketing of commodities in West African.
b. State 5 roles of co-operative in Distribution of Gods in Nigeria
3. Define the following:
a. The firm
b. The industry
c. Economies of scale
d. External economies of scale
e. Internal diseconomies of scale
4a. What is internal economies of scale?
b. List any four (4) advantages of internal economies scale.
c. Explain any two (2) advantage mention above.
5a. What is agriculture?
b. Explain the following components of agriculture
i. Crop farming
ii. Fishing
iii. Forestry
iv. Livestock

SS2 ECONOMICS
OBJECTIVE
TIME 1 ½ HOURS
1. Which of the following has a derived demand? (a) Labour (b) butter (c) Television
sets. (d) Bread.
2. In economics production is complete when (a) goods are manufactured in the
factories (b) commodities are sold to the final consumer (c) goods and services are
distributed by the government (d) goods and services get to the retailers
3. Goods are said to be in competitive demand when they (a) are substitutes (b) are
complementary to each other (c) are identical (d) are jointly demanded
4. which of the following is function of commercial banks? (a) issue currencies (b) are
the bankers bank (c) accept deposits (d) determine the rate of interest.
5. A stock exchange is a market that (a) deals with the exchange of commodities (b)
exchange stockfish for lady fish (c) sells foreign exchange (d) deals with the purchase
and sale of securities.
6. All the following are different forms of money except (a) bank note (b) bank tellers
(c) demand deposits (d) currency.
7. The development banks are essentially different from commercial banks because they
(a) open current accounts for their customers (b) give medium and long term loans (c)
discount bills of exchange (d) are lenders of last resort.
8. An exceptional demand is one in which the (a) supplier sells all that he takes to the
market (b) consumers do not buy from the market (c) quantity demanded falls as
price falls (d) quantity demanded and price move apposite directors.
9. Total cost is the addition of (a) real cost and money cost (b) price and taxes (c)
average cost and marginal cost (d) fixed cost and variable cost.
10. The creation of utility can be referred to as (a) value added (b) profit maximization
(c) entrepreurship (d) production.
11. The most common form of business enterprise in West Africa is the (a) Sole
proprietorship (b) co-operative (c) partnership (d) Joint stock company.
12. The entire satisfaction that a consumer derives from a successive consumption of a
particular commodity is known as: (a) marginal utility (b) total utility (c) average
utility (d) diminishing utility.
13. Dividing total variable cost by quantity of output gives (a) total cost (TC) (b) Total
fixed cost (TEC) (c) variable cost (d) average variable cost (AVC).
14. Performance of one task in a production process in known as: (a) standardization (b)
division of labour (c) specialization (d) segmentation.
15. Use the table below to answer question 16, 17 and 18.
 Unite of variable factor total product
1 25
2 31
3 40
4 48
5 55

16. the marginal product at the fourth variable factor is (a) 12 (b) 8 (c) 9 (d) 6.
17. The difference between the highest and the least marginal product of the variable
factors is (a) 3 (b) 8 (c) 10 (d) 12
18. The average product of the variable factor when four units are employed is (a) 6 (b) 8
(c) 12 (d) 48
19. The cost incurred by using both fixed and variable factors in production is called: (a)
Marginal cost (b) fixed cost (c) total cost (d) average cost.
20. The upward slopping of the supply curve indicates that (a) more will be supplied as
prices rises (b) less will be supplied as price rises (c) supply is not function of price
(d) supply is static and demand is dynamic.

SECTION B
THOERY
ANSWER QUESTION 1, 4 IN THIS SECTION
1a. State the laws of variable proportions.
b.
Table of input and output
Units of land Number of men Total Average Marginal
fixed factors employed variable output output output
factor
4 1 15 15 15
4 2 32 16 17
4 3 54 18 22
4 4 72 18 18
4 5 85 17 13
4 6 90 15 3
4 7 84 12 -6

Draw the Total product (TP) curve and Marginal Product. (MP) in one diagram. (No
graph sheet is required). Note use product on Y axis and number of men employed.
2. Define the following:
i. Revenue
ii. Profit
iii. Marginal revenue
iv. Total revenue
v. Average revenue

3. With the aid of diagram, explain the short run and long-run cost.
4. The output and cost of production of rice (in bags) are presented in the talbe below.
Use the information in the table to answer the questions that follow:
Output rice (in bags) 0 1 2 3 4
Total variable cost (TVC) 0 5 7 10 20
a. Calculate the
i. Average fixed cost (AFC) at output levels 0,2and 4.
ii. Marginal cost (MC) at all levels of output.
b. if the price of bay of rice were #10
i. Calculate the profit /less at all level of output.
At what output level(s) is the maximum profit made?
5. Define the following:
i. Form utility
ii. Place utility
iii. Time utility
iv. Marginal utility
v. Total utility.

END OF THE TERM EXAMINATION

SS1 ECONOMICS
SECTION A
TIME 21/2 HOURS
OBJECTIVE QUESTIONS
NO 1-20 MID TERM EXAM
1. Every society strives to pursue all the following economic objectives except (a)
Increase production (b) Price Stability (c) An inequitable distribution of income
(d) Sustainable growth and development.
2. The graph of the function X=a + by is (a) Linear (b) Quadrate (c) Cubical (d)
exponential
3. The benefit that results from concentrating similar firms in an area is referred to
as (a) External diseconomies of scale (b) Internal diseconomies scale (c) Internal
economies of scale (d) External economies of scale.
4. The main objective of setting up private business as it to (a) Protect the interest of
the government (b) Maximize profits (c) Provide Infrastructure (d) Promote
exports.
5. The National Electric Power Authority (NEPA) of Nigeria is a. (a) Public limited
company (b) Private limited company (c) Private Authority (d) Public
Corporation.
6. Which of business organisation enjoys tax-free profits in West Africa (a) Co-
operative societies (b) Private Limited liability companies (c) Joint stock
companies (d) Partnership
7. The problem of scarcity is reduced by (a) Controlling consumption of goods and
services (b) Producing everything needed by consumers (c) Ensuring efficient
allocation of resources (d) Restricting consumer choices and tastes.
8. One major function of the entrepreneur is (a) Bearing of risk (b) Maximizing
profits (c) Taking charge of day to day management (d) Determining the selling
price of his products.
9. A major limiting factor of mass production is (a) Efficient management (b)
adequate labour supply (c) small size of the market (d) adequate supply of raw
materials.
10. A normal demand curve slopes (a) downwards from left to right (b) Upwards
from left to right (c) Downwards from right to left (d) upwards from the origin.
11. The most common type of business in West Africa countries is (a) Joint-stock
companies (b) Sole-proprietorship (c) Partnership (d) Public enterprises.
12. Which of the following is a type of business organization? (a) Stock exchange (b)
Insurance company (c) Chain stores (d) Co-operative.
13. One advantage of the sole proprietorship is that (a) Accounts must be published
(b) It is always successful (c) Funds are easy to obtain (d) Control and
supervision is under one man.
14. The shares which do not carry fixed rate of dividend are known as: (a)
Debentures (b) Cumulative (c) Ordinary shares (d) Partiapating preference share.
15. The economic goal of public corporations is to (a) Maximize profit (b) Provide
essential services (c) Expand assets (d) Minimize costs.
16. Efficient distribution of goods in West Africa will be facilitated by: (a) Poor
storage facilities (b) Adequate transportation system (c) High standard of living
(d) High cost of living.
17. In a socialist economy, the means of production is owned and controlled by the
(a) State (b) Rich (c) Entrepreneur (d) Trader.
18. The distribution of goods is said to be completed when it reaches the (a)
Wholesalers (b) Retailers (c) Consumers (d) Manufactures
19. An economic good is described as a good which (a) Yields utility and command a
price (b) Is useful and occupier a space (c) is in high demand and transferable (d)
Has unlimited supply.
20. Wholesalers are often criticized because they (a) Help to break the bulk (b)
Finance produce (c) Increase prices (d) Provide after-sale services.
SECTION B
ANSWER ONE QUESTION ONLY FROM THIS SECTION
1. Given the demand function for commodity x Qd = 12-2p where Qd is the
quantity demanded and P the price of the commodity.
a. Use the demand function to complete the table below.
P 6 5 4 3 2 1 0
Quantity demanded

(Show your working)

b. Draw the individuals demand curve (use of graph paper is essential)
c. What is the maximum quantity the individual can buy of commodity x per unit
of time?
d. What is the relationship between quantity demanded and price in the function
Qd = f (d)?
2. The daily sales of department store for one week.
Days Mon Tue Wed Thurs Fri Sat
Sale (N) 1750 1000 3500 2250 1000 2500

a. Present the above data in a bar graph (The use of graph sheet is essential).
(b) Calculate the average daily sales for the week
SECTION C
Answer three (3) questions in this section
3a. Explain five (5) problems of distribution and marketing of commodity in
West Africa.
b. List five (5) function of retailers.
4a Explain the following advantages of internal economic of scale:
i. Marketing economies
ii. Financial economies
iii. Administrative or managerial economies
iv. Welfare economies
b. List four (4) demerits arising from internal diseconomies.
5a. Explain four (4) important of agriculture to West Africa Countries.
b. State four (4) component of agriculture.
6a. What is demand?
b. With the aid of illustration, differentiate between a demand schedule and a
demand curve.
c. Explain four (4) factors that affect demand.
7a. With the aid of diagram, explain the following:
i. Change in the quantity supplied
ii. Change is supply
iii. An increase in demand
b.i What is abnormal demand?
ii. Explain any two (2) reason why people buy at higher prices than at lower
prices.
END OF THE TERM EXAMINATION
SS2 ECONOMICS
SECTION A
OBJECTIVE QUESTION
1 – 20 MID TERM EXAMINATION
1. In the firm’s production process, marginal cost (a) falls continuously
throughout (b) falls and later rises (c) remains unchanged throughout (d) rises
and later falls.
2. One reason why small scale business are very common in West Africa is that:
(a) They can easily float shares (b) their management boards are easily
formed (c) Their initial capital is easy to raise (d) their Dividend payments
are very regular.
3. A public limited company could finance its operations through. (a)
Government taxes (b) Equity shares (c) Dividends payments (d) Import
duties.
4. A shift in demand curve indicates (a) exceptional demand (b) change in
demand (c) change in quantity demanded (d) elasticity of demand.
5. If a 6% decrease in price results in more than 6% decrease in quantity
supplied, supplied can be regard as: (a) Elastic (b) Unitary elastic (c)
Perfectly inelastic (d) Perfectly elastic.
6. A condition for consumer utility maximization is (a) Equality of the ratio of
marginal utilities and the ratio of prices (b) Equality of the ratio of average
utilities and the ratio of prices (c) Equality of the marginal utility to total
utility ratio for both commodities. (c) Total utility and marginal utility must
be zero.
7. Which of the following best describes the mode? The (a) Average of two
middle numbers. (b) Item that occupies the middle position (c) Difference of
two extreme values (d) Observation with the highest frequency
8. A demand schedule shows the quantities of goods that are: (a) Supplied at
given prices at a time (b) Produced at given prices at a time (c) Bought at
given prices at a time (d) Reserved for future consumption.
9. A decrease in the demand for a product x resulted in a decrease in the
demand for another product Y. The demand for x and y is: (a) derived (b)
Joint (c) Composite (d) competitive
10. Any price below the equilibrium price will lead to (a) Increase in quantity (b)
Excess demand (c) Equality of demand and supply (d) Decrease in demand.
11. The allocation of goods and services in a free market economy is performed
by: (a) The price system (b) the banking system (c) The central planning
body (d) Government budgets.
12. Given that demand function Qd=20 – ½ p. What is Qd when P is $12 (a) 6
units (b) 10 units (c) 12 units (d) 14 units
13. If a particular consumer derives total utility of 22 units having consumed 4
units of a given product, his average utility will be (a) 88 utils (b) 18 utils (c)
5.5 utils (d) 3.5 utils.
14. The law of diminishing marginal utility applies to a (a) Firm which
minimizes cost (b) Consumer who maximizes satisfaction (c) Producer who
maximizes marginal product (d) consumer who minimizes total utility.
15. Which of the following is capable of increasing the population of a country?
(a) Decrease in death rate (b) Increase in death rate (c) Poor medical facilities
(d) Decrease in birth rate.
16. The factor of production which takes the initiative in combining resources for
production is known as: (a) Capital (b) Land (c) Entrepreneur (d) Labour
17. Which of the following is a function of a retailer? (a) Banking services (b)
Hoarding services (c) Storage services (d) Sales services.
18. The difference between the number of immigrants and emigrants is: (a)
Natural growth rate (b) natural increase (c) net migration (d) census
19. All the following are features of optimum population except (a) full
employment available resources (b) unlimited amount of unexploited
resources (c) Maximum per capita production and income (d) High standard
of living.
20. The financial that specializes in risk spreading is called: (a) An investment
bank (b) a development bank (c) an insurance company (d) the stock
exchange.
21. The following are means of reducing the population of a country except
encouraging (a) Emigration (b) Family planning (c) early marriage (d) Sex
education
22. Mr. Okpoti has meat and wants maize, while Mr. Adama has maize and
wants meat. A transaction is (a) double coincidence (b) Joint demand (c)
Scale of preference (d) Opportunity cost.
 23. Which of the following is not form of money? (a) Coins (b) Bank deposit (c)
bank notes (d) bank Balance.
24. The difference between birth rate and death rate is known as: (a)
Demographic transition (b) Natural growth rate (c) Migration rate (d) fertility
rate.
25. In open market operations, what are central bank or buys are: (a) Shares (b)
Debentures (c) Securities (d) Equities

26. Units of quantity consumed Total Utility Marginal Utility

0 - -
1 10 10
2 15 5
3 17 2
4 18 1
5 18 0
The table above illustrates the law of (a) Diminishing marginal utility (b)
diminishing marginal productivity (c) diminishing returns (d) increasing
returns.
27. A society that operates below the production possibility curve is using its
productive resources (a) Optimally (b) Efficiency (c) Inefficiently (d)
Maximally.
28. An efficient weapon used in resolving disputes between employers and
employees is (a) Co-operation (b) Collective bargaining (c) display of
placards (d) legal action.
29. An consumer purchasing a commodity x will maximize his satisfaction if. (a)
Px = MUx (b) Px > MUx (c) Px > MUx (d) Px < MUx.
30. If the quantity demanded of a commodity increases from 20 t0 30 units when
there is an increase in price from 4 naira to 5 naira, the elasticity of demand
is: (a) 0 (b) 1 (c) 2 (d) 5.
SECTION B
ANSWER ONE (1) QUESTION ONLY FROM THIS SECTION
1. The table below shows Mr. Nengi’s schedule of total utility for oranges
and mangoes. The prices of oranges and mangoes are set at $1. 00 each. Mr.
Nengi has $10. 00 to spend on the goods.
Use the information contained in the table to answer the questions that
follow:
Orange Total utility Mangoes Total utility
1 100 1 50
2 190 2 95
3 270 3 135
4 340 4 170
5 400 5 200
6 450 6 225
7 490 7 245
8 520 8 260

a. Calculate the marginal utility for all the levels of consumption for the goods.
b. at equilibrium, how many, (1) oranges (11) Mangoes will the consumer buy?
c.i) State the law of diminishing marginal utility
ii. State the marginal condition for utility maximization.

2. The supply situation for rice in x over a period is as shown in the table below. Use
the information in the table to answer the questions that follow:
Periods Prices Quantity Supplied (bags)
December 2004 30 100
January 2007 40 150
April 2009 50 160

a. Calculate the co-efficient of price elasticity of supply for rice between December
2004 and January 2007.
b. Is the supply of rice elastic or inelastic? Give a reason for you answer.
c. State any three reasons which may cause an increase in the supply of rice.
SECTION C
ANSWER THREE (3) QUESTIONS ONLY
3a. With the aid of diagram, explain the effects of fixing a price (i) Above the
equilibrium (ii) below the equilibrium
b.i. What is an abnormal demand?
ii. Give two reasons for its occurrence
4a. define the profit of a firm
b. with appropriate formulae, explain the following revenue and cost concepts: (i)
Total revenue (TR) (ii) Average Revenue (AR) (iii) marginal revenue (MR) (iv)
Average fixed cost (AFC)
5a. Explain the following types of unemployment: (i) structural Unemployment (ii)
Voluntary Unemployment (iii) Frictional unemployment (iv) cyclical unemployment
b. List four (4) measures to eliminate unemployment.
6a. Define the following: (i) Public finance (ii) Tax
b. Explain any three (3) objective or types of public expenditure.
c. List three (3) types of indirect tax.
7a. Define the following: (i) Cross elasticity of demand (ii) price elasticity of demand.
b. With the aid of diagram explain the following types of or degrees elasticity of
demand (i) Elastic demand (ii) Inelastic demand (iii) Perfectly elastic demand
c.i. What is price legislation or price control
ii. Draw curve illustrating maximum price control.