ECONOMICS SS1

1. Other things being equal, an increase in supply will lead to _____________ (a) a
fall in price and increase in quality bought and sold (b) an increase in quantity
supplied and demanded only (c) an increase in price and increase (d) a decrease
in demand and supply
2. A basic economics problem of any society is ______________ (a) high level of
illiteracy (b) irregular power supply (c) population growth (d) resource allocation
3. Which of the following is related to resource allocation in an economy (a) how to
produce (b) what to produce(c) for whom to produce (d) efficient use of inputs
4. Human wants are unlimited because _____________ (a) production is
inadequate (b) resources have alternative uses (c) new want always arise (d)
resources are unlimited
5. In a centrally planned economy, what to produce is ___________ (a) determined
by the forces of demand and supply (b) driven by profit (c) determined by
consumers (d) the responsibility of state’s bureaucrats
6. A declining population one in which the population is __________ (a)
experiencing a high rate of emigration (b) made up of large numbers of old
people (c) not producing enough goods (d) not contributing
7. Livestock production in West Africa is hindered mainly by (a) inadequate demand
(b) use of traditional implements (c) land tenure system (d) pest and diseases
8. Which of the following is not a characteristics of developing country (a) high real
per capita income (b) level of primary production (c ) population growth rate (d)
level of illiteracy
9. Economics is a social science because it ______________ (a) is related with
our choices is made (b) deals with aspect of human behavior (c) provide people
with commodity (d) is very wide
10. Goods consumed out of habits have _________ (a) elastic demand (b) perfectly
elastic demand (c ) inelastic demand (d) unitary elastic demand
11. Who is the father of economics (a) j b Robert (b) professor Lord Lionel Robins (c)
Alfred Marshall (d ) Adam Smith
12. ___________ defined economics as a practical science of production and
distribution of wealth (a) Adam Smith (b) Alfred Marshall (c) johns. Milll (d)
Robertson
13. _____________ is total amount of money spent in order to acquire a set of
goods and services (a) opportunity cost (b) money cost (c) choice (d) scale of
preference
14. ___________ simply means the desire or wish to own goods or services that
gives satisfaction (a) wants (b) scarcity (c) scale of preference (d) all of the above
15. Who has the most accepted definition of economics (a) J.B says (b) professor
Lord Lionel Robins (c) Alfred Marshall (d) Adam Smith
16. _________, ________ and ____________ are the basic problems of economics
17. The following are the concept of economics except (a) choice (b) satisfied (c)
scale of preference (d) scarcity
18. ____________ can be defined as the insert table desire or needs by human
being to own goods or services that gives satisfaction (a) scarcity (b) wants (c)
data (d) service
19. _____________ breakfast to the limited available resources used in satisfying
the unlimited human resources (a) scarcity (b) wants (c) scale of preference (d)
need
20. The fundamental economic problem faced by all society is __________ (a)
unemployment (b) poverty (c) inequality (d) scarcity
21. Scarcity arises because also societies have a limited production resources to
satisfy (a) unlimited wants (b) unlimited productive resources to satisfy limited
wants (c ) limited needs and unlimited wants (d) unlimited needs and limited
wants
22. ________ is the list of unsatisfied wants arranged in order of their relative
importance (a) scale of preference (b) opportunity cost (c) list of things needed
(d) money cost
23. __________ is a system of economics that involve the selecting and choosing
one out of the numbers of alternatives (a) money cost (b) wants or needs (c)
scarcity (d) choice
24. Human wants his ___________ (a) limited (b) unlimited (c ) scarce (d) always
met
25. The following except one are the factors that determine what to produce (a)
consumer's need (b) storage supply unit (c) cost of production (d) type of
economy
26. Scarcity in economics generally refers to __________ (a) period of production (b)
hoarding of goods (c ) resources being limited (d) surplus
27. The opportunity cost of a good is _____________ (a) it's price in dollars and
cents (b) the alternative goods forgone (c ) the price of alternative goods forgone
(d) all of the above
28. Which of the following best explain what to produce? (a) how much goods are to
be produced (b) the combination of resources to be used (c ) which groups and
services are to be produced (d) how many wants are to be satisfied
29. In economics, a market is defined as ending _______ (a) agreement made for
consumers to buy all they need (b) agreements to sell commodities at low prices
(c) arrangements made for producers to sell all their goods (d) system or
arrangements by which persons and institution are brought into contacts to
exchange goods and services
30. All economic systems must decide what to produce the first (a) resources are not
available (b) consumer wants maximum satisfaction (c) resources are limited in
supply (d) producers want maximum profits
 SECTION B
Answer three questions
1. Economic problems arises because a country's resources are limited in relation
to her unlimited wants. Identify and explain these economic problems
2. Define private enterprises and public enterprises
b. Briefly state four characteristics of each
3. Define sole proprietorship.
B. Explain four advantages and four disadvantages of sole proprietorship.
4. Explain the reasons for the continued existence of small scale business units in
Nigeria.

ECONOMICS SS2
1. Human wants are unlimited because (a) resources are unlimited (b) resources
have alternative uses c) new want always arise d production is inadequate
2. All economic systems must decide what to produce because (a) resources are
not available b consumers wants maximum satisfaction c resources are limited in
supply d producers wants maximum profit
3. In economics, a market is defined as any_______(a) agreement to buy all they
need (b) agreements to sell commodities at low prices c) arrangement made for
producers to sell all their goods (d) system or arrangements by which persons
and institution are brought into contacts to exchange goods and services
4. Demand is elastic when percentage change in (a) quantity demanded is greater
than percentage change in price (b) price is greater than percentage changing
quantity demanded c ) price is equal to one (d) quality demanded is zero
5. A debenture holder earns _______ (a) commission (b) profits c) fixed interest (d)
quasi-rent
6. Other things being equal, an increase in supply will lead to ___ (a) Paul in price
 and increase in quantity bought and sold (b) an increase in price and increase in
quantity demanded (c. A decrease in quantity demanded and supplied d) and
increase in quantity supplied and demanded only
7. If the coefficient of price elasticity of demand is one (1), demand is___ (a) elastic
(b) inelastic (c) zero elastic d) unitary elastic
8. Which of the following is not a function of an insurance company a) pooling
resources together against risk (b) mobilization of fund true premium collected
(c.) encouragement of investments by security of capital (d) collection of deposits
from the public for investment
9. General rise in the price level induced by increased price of input is referred to as
_____(a) run-away inflation (b) cost-push inflation (c.) demand-pull inflation (d)
imported inflation
10. A budget is balanced when expected total revenue is_______(a) greater than
expected expenditure (b) less than total expenditure (c.) equal to expected
expenditure (d) greater than total expenditure
11. An increase in the supply of a commodity x automatically results in an increase in
the supply of another commodity why why. This is a case of ____(a) elastic
supply b) joint supply (c.) exceptional supply (d) competitive supply
12. Trade between two countries is known as_____(a) bilateral trade (b) unilateral
trade (c.) multilateral trade (d) internal trade
13. Why would an individual increase his level of consumption during inflationary
period. (A) The real value of any amount saved false over time (b) interest rates
are generally low (c.) there are variety of good to buy (d) wages and salaries
stagnate during inflation
14. Which of the following is a function of money? (A) Medium of communication (b)
measures of security (c.) store of wealth (d) treasury bills
15. A major disadvantage of partnership form of business is that_____(a) every
partner has to be consulted during decision making (b) partners could be two
friendly with their customers (c.) affairs can be kept private (d) partner could take
long holidays
16. A cooperative society is a ____(a) finance house (b) self- help business
organization (c.) public corporation (d) non - democratic business organization
17. The fundamental economic problem faced by all societies is____a
unemployment (b) poverty (c.) inequality (d ) scarcity
18. The type of Monopoly that develops as a result of uneven distribution of
resources is called (a) legal Monopoly (b) natural Monopoly (c.) state Monopoly
(d ) international Monopoly
19. Which of the following will enhance productivity in an economy? (A) The use of
obsolete capital (b) technological change (c.) expansion of land under cultivation
(d) and increase in the Labor Force
20. An agricultural production process which uses more machinery relative to labor is
 referred to as (a) large scale farming (b) capital intensive farming (c.) commercial
farming (d) land intensive farming
21. Goods are said to be competitive demanded when they are_____(a physical
goods (b ) economic good (c.) free goods (d) in tangible goods
22. Which of the following statements is not a feature of Monopoly? (A) Seller is
allowed (b) buyers and sellers are price takers (c.) new entrances are restricted
(d) there is only one seller of the commodity
23. Livestock production in West Africa is hindered mainly by ____ (a) demand (b)
use of traditional implements (c.) land tenure system (d) pets and diseases
24. A decline population is one in which the population is___(a) experiencing a high
rates of emigration (b) made up of large number of old people (c.) not producing
enough goods (d) not contributing enough to the national income
25. Other things being equal, and increasing supply will lead to ________(a) a fall in
price and increase in quantity bought and sold (b) and increase in quantity supply
and demanded only
26. The components of a three- sector economy are (a) banks, schools and hospitals
(b) workers, producers and marketers (c.) I also, farms and government (d)
producer, firms and government
27. Which of the following is not a characteristics of a developing country? (a) high
real per capita income (b) level of primary production (c.) population growth rate
(d) level of illiteracy
28. Goods consumed out of habits have (a) and elastic demand (b) perfectly elastic
demand (c) in elastic demand (d) unitary elastic demand
29. Scarcity arises because all societies have (a) limited productive resources so
satisfy unlimited wants (b) unlimited productive resources to satisfy limited wants
(c.) limited needs and unlimited wants (d) unlimited needs and limited
30. ________is the list of unsatisfied wants arranged in other of their relative
importance (a) scale of preference (b) opportunity cost (c.) list of things needed
( d) money cost

SECTION B (THEORY)
ANSWER THREE QUESTIONS
1. List and explain five reasons for government participation in the location of
industries in Nigeria.
B. Outline the role of industrialization in the economic development of Nigeria
2. Give five reasons for the low rate of industrial growth in your country.
B. Distinguish between I. A farm and an industry i i. Location and localization of
industries
3. Discuss the different types of agricultural system that exists in West Africa
4. Explain each of the following
I. Localization of industries
II. Economics of scale
III. Indigenization
IV. National budget