SCHOOLS
YEAR 12 MOCK 2 UNIFIED EXAMINATION
2021/2022 ACADEMIC SESSION
SUBJECT: ECONOMICS
PAPER I: OBJECTIVE TEST
INSTRUCTION: Answer all questions from this part.
1. Economics is best described as the
study of
A. the wealth of nations
B. how man consumes his
products
C. how man provides for his
everyday needs
D. the distribution of wealth
2. Productive resources can also be
called
A. principle of production
B. factors of production
C. items of production
D. labour and material
resources
3. If the estimated population of a
state, which occupies a land area of
7,500 square kilometer was 225,000,
calculate the population density.
A. 0.033
B. 0.33
C. 35
D. 30
4. The three determinants of the size
and growth of population are:
A. birth rate, death rate and
migration
B. disaster, propensity and
education
C. family planning, birth control
and medical services
D. tradition, custom and
religion
TIME: 1HOUR
5. The theory of diminishing
marginally utility states that: as
more unit of a commodity is
consumed, the
A. satisfaction from an extra
unit decreases
B. satisfaction from extra unit
rises
C. satisfaction from an extra
unit remains constant
D. total satisfaction from the
good remain the same
6. The active population of a country
determines the size of its
A. economic resources
B. national income
C. labour force
D. gross domestic product
7. If goods P and Q are jointly
demanded, an increase in the price
of P will likely
A. leave the demand for Q
constant but reduce the
quantity demanded of P
B. reduce the quantity
demanded of P but increase
the price of Q
C. increase in the quantity
supplied of Q
D. decrease the quantity
demanded of Q
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8. The gap between demand and
supply curves above the equilibrium
price is called
A. normal demand
B. excess supply
C. equilibrium quantity
D. abnormal demand
9. A major function of the price
mechanism is that it determines the
A. allocation of resources
B. amount of national savings
C. population of the country
D. number of goods to be taxed
10. Which of the following determinants
of supply cannot be predicted
easily?
A. Price of the commodity
B. New techniques of
production
C. Natural emergencies
D. Mobility of labour
11. If the co-efficient of elasticity of
demand is 1.5, then the demand is
A. fairly inelastic
B. perfect
C. elastic
D. inelastic
12. When the marginal utility of a
product is zero, the total utility is
A. at its maximum
B. upward -sloping
C. downward-sloping
D. at minimum
13. In the long run, all factors of
production are
A. expensive
B. variable
C. durable
D. fixed
14. The slope of the transformation
curve indicates the
A. opportunity cost of
producing one commodity
for another
B. opportunity cost of
producing two commodities
at a time
C. sale of the plant to other
investors
D. decrease in the cost of
production
15. Which of the following is regarded
as fixed cost?
A. Expenditure on raw materials
B. Expenditure on fuel
C. Expenditure on power
D. Cost of building
16. Revenue is described as the
A. cost of good multiplied by
the quantity sold
B. price of good multiplied by
the quantity sold
C. quantity of good plus chase
price
D. quantity supplied less
quantity sold
17. A business outfit is said to be a
Public Limited Company when it
A. is owned by government
B. operates as a public
corporation
C. is run by the public
D. sells its shares to members
of the public
18. Economic freedom is a basic feature
of
A. Market Economy
B. Command Economy
C. Industrialized Economy
D. Developing Economy.
19. The monopolist can determine
A. price and output
B. price only
C. output only
D. price or output
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20. A market situation with a large
number of firms selling closely
related but differentiated products
is
A. monopolistic competition
B. perfect competition
C. monopoly
D. monopsony
21. Equilibrium under perfect
competition requires that
A. MC = MR but AR < AC
B. MR = MC = AR = AC
C. AC = AR < MC
D. TR < TC
22. The purely competitive firm should
close down when its price less than
its
A. average variable cost
B. total fixed cost
C. average total cost
D. marginal Cost
23. During a sale by auction, the price in
which goods are finally sold is
mostly determined by
A. competition between buyers
and sellers
B. competition among buyers
C. competition among sellers
D. government policy
24. Which of the following does not
affect a country’s population?
A. Birth Rate
B. Death Rate
C. Emigration
D. Unemployment
25. Trade unions in West Africa have
achieved the following for their
workers except
A. increase wages
B. better condition of service
C. competitive determination of
wage rate
D. improved welfare facilities
26. The employers demand curve for
labour is represented by the
A. marginal product curve of
labour
B. total product curve of labour
C. average produce curve of
labour
D. total cost curve of labour
27. Agriculture 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
28. The main objective of specialization
is to
A. allocate resources
B. limit workers skill
C. increase the use of labour
D. increase productivity
29. An industry can be defined as
A. several firms producing
different commodities
B. group of firms producing
similar commodities
C. different firms producing
equal number of
commodities
D. many firms producing for
export
30. The principle of comparative cost
advantage was propounded by
A. David Ricardo
B. Alfred Marshal
C. J. S Mill
D. Adam Smith
31. The national income of a country
can be estimated through the use of
A. Output Approach
B. Input Approach
C. Empirical Approach
D. Estimated Approach.
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 Use the table below to answer questions 32 and 33.
Items $ Million
Final consumption expenditure 500
Gross private investment 150
Government Purchases 300
Depreciation 25
Net factor income -10
32. The Gross Domestic Product (GDP) is 38. A continuous fall in the general price
equal to level is called
A. $825m A. Recession
B. $925m B. Depression
C. $940m C. Deflation
D. $950m D. Stagflation
33. The net capital formation is 39. The Central Bank can restrict credit
A. $115m through
B. $125m A. depreciation of assets
C. $915m B. granting overdraft
D. $925m C. direct investment
34. If the Marginal Propensity to Save D. Open Market Operation.
(MPS) in a two sector economy is 40. Creation of money by commercial
0.1, what will be the change in the banks is done through
national income, if investment is A. increasing the cash ratio
increased by N10m? B. printing of money
A. N100m C. lending to borrowers
B. N9m D. issuing cheques
C. N10m 41. Public finance is basically an analysis
D. N90m of the
35. If money is demanded for what it A. income and expenditure of
can buy, the demand is said to be government
A. derived B. expenditure patterns of
B. joint government
C. composite C. current and capital receipts
D. complementary of government
36. A consumer maximizes his utility in D. current and capital
increasing good X when expenditure of government
A. Mux = Px 42. The major use of taxation is to
B. Px > Mux A. control population growth
C. Price is falling rate
D. Mux > Px B. influence people’s spending
37. The indicator of the value of money habits
is C. control money supply
A. the general price level D. create bank credit
B. the equilibrium price
C. consumers’ income
D. the interest rate.

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43. A tax which is expressed as a given
absolute sum of money per unit of a
commodity is known as a/an
A. specific tax
B. direct tax
C. indirect tax
D. value added tax
44. All indirect taxes tend to be
A. progressive
B. regressive
C. certain
D. equitable
45. Which of the following will have a
more destabilizing effect on the
economy?
A. A tax on the prices of
vehicles
B. A tax on petrol
C. A decrease in the supply of
vehicles
D. Moderate increase in wages
46. An important features of economic
development is
A. population explosion
B. reduction in export
C. high literacy level
D. low exports
47. Trade among nations is desirable
because it
A. enables people in a country
to know those in other
countries
B. makes it possible for people
in a country to enjoy the
goods and service produced
in other countries
C. enables residents in a
country to understand the
language of resident
of other countries
D. makes it possible for a
country to have the
currencies of other countries
48. Invisible trade refers to trade in
A. services
B. goods and services
C. tangible goods
D. crude oil
49. Balance of payment surplus implies
that the value of the country’s
A. export exceeds its imports
B. imports exceed its exports
C. exports is equal to its
imports
D. terms of trade is constant
50. A country’s import price index in
2009 was 50 and her index of export
price was 70. Calculate the country’s
terms of trade
A. 140%
B. 20%
C. 120%
D. 71.4%
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 SCHOOLS
YEAR 12 MOCK 2 UNIFIED EXAMINATION
2021/2022 ACADEMIC SESSION
SUBJECT: ECONOMICS TIME: 1½HOURS
NAME

UNIT DATE

PAPER 2: THEORY QUESTIONS

SECTION A
Answer only one question from this section.
1. The table below represents the cost function of a poultry farm.
The price per crate is $21.
Use the information on the table to answer the questions that follow.
Quantity of Egg Total Cost
(In crates) (In $)
0 50
1 55
2 62
3 75
4 96
5 125
6 162
7 203
8 248

a. Calculate the marginal cost of each unit of output. 4marks

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b. Draw the demand curve for this farm. 6marks

c. What is the profit maximizing output level of this firm?

State the reason for your answer. 4marks

d. With the aid of diagram, describe the following: 6marks

i. Average Revenue

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 ii. Marginal Revenue

2. a. Find the values of letters A, B, C, D, E, F, G, H, I and J in the table below.

Unit of Fixed Variable Total Average Marginal
output Cost (N) Cost (N) Cost (N) Cost (N) Cost (N)
1 A 100 120 120 -
2 B 160 E G I
3 20 C 210 70 30
4 20 260 280 70 70
5 20 280 300 H 20
6 20 D F 90 J
5marks

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b. With the aid of diagram, briefly describe the following: 10marks
i. Marginal Cost

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ii. Variable Cost

iii. Total Cost

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 iv. Supply Curve

v. Average Fixed Cost 2marks

c. Define the profit of a firm. 3marks

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 SECTION B
Answer FOUR Questions from This Section.
3. a. State two feature of each of the following:
i. Perfect competition; 8marks

ii. Monopolistic competition.

b. what does it mean for a firm to be a:

i. Price Taker;

ii. Price Maker

c. Explain the following source of monopoly power:

i. Acts of parliament; 12marks

ii. Copyright

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 iii. Natural monopoly

iv. Cartel.

4. a. What is Public Recurrent Expenditure? 3marks

b. Give four reasons for the rapid increase in government expenditure

in your country. 8marks

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 c. Define the term Limited Liability. 3marks

d. Explain three problems of Statutory Public Corporations in your

country. 6marks

5. Explain the following systems of agriculture as practiced in your country: 20marks

a. Subsistence Farming

b. Co-Operative Agriculture

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 c. Plantation Agriculture

d. Mechanized Agriculture

e. Peasant Farming

6. a. What is Economic Integration? 4marks

b. State two features each of:

i. Free Trade Area; 4marks

ii. Common Markets. 4marks

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 c. Highlight two advantages and disadvantages each of:
i. Custom Union; 4marks

ii. Economic Union. 4marks

7. a. What is a market? 4marks

b. Explain four main features of Perfectly Competitive Market. 10marks

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 c. Give three reasons why the governments of West African Countries
have found the policy of privatization attractive. 6marks

8. a. Explain the term Internal Economies of Scale. 2marks

b. Explain four economies of scale a firm enjoys as it grows in size. 8marks

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c. Outline five effects of high dependency ratio in Nigeria. 10marks

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