2022/2023 FIRST TERM SS1 ECONOMICS EXAMINATION

1. The Federal Ministry of health regulating all hospital activities in Nigeria,

including those in private practice is a feature of
A. socialism
B. mixed economy
C. capitalism
D. none of the above

2. Ensuring industrialization/creativity and making sure that essential services are

rendered to the people is a feature of a _______ economy
A. capitalist
B. socialist
C. mixed
D. traditional

3. Oil spillage, water pollution, good roads, afforestation and deforestation are all
examples of
A. positive externalities
B. negative externalities.
C. social cost
D. externalities.

4. Total social benefit =

A. Private cost + social cost
B. Private cost + external cost
C. Private benefit + external benefit
D. None of the above

5. Which of these is a feature of a public good?

A. It is usually non accessible to all
B. It is expensive to buy
C. It is non excludable.
D. It is restricted to the poor.

6. A situation where the price mechanism cannot influence production, distribution

and consumption decisions of people within a state is a sign of ______
A. corruption
B. scarcity
C. pollution
D. market failure
7. The desire to own goods and services is referred to as ______
A. ends
B. needs
C. wants
D. means

8. Economics is a/an ______ because it employs methods like observation,

hypothesis, testing of facts etc before conclusions are drawn
A. arts discipline
B. social science
C. science
D. none of the above

9. Economics is a/an ______ discipline because it studies human behavior.

A. science
B. arts
C. social science
D. general science

10. The production possibility curve is __________ sloped.

A. flat
B. curvy
C. negatively
D. positively

11. Which of these is not a primary activity?

A. hunting
B. gathering
C. lumbering
D. carpentry

12. Which of these countries below is likely to have almost 80% of her work force in
Banking, communication and manufacturing sectors
A. Congo
B. Zambia
C. United Knigdome
D. Mali

13. Production is not complete until ______________________

A. goods are processed
B. branding is complete
C. goods reach final consumers
D. storage is complete

14. Which of these economic concepts is not clearly reflected on the PPC?
A. Scarcity
B. scale of preference
C. choice
D. opportunity cost
15. Scarcity in economics implies ___________
A. poverty
B. non-availability of resources
C. famine
D. limited availability of resources

16. Which of these is not a disadvantage of capitalism

A. It leads to exploitation.
B. It leads to fair distribution of resources
C. It creates unhealthy completion.
D. It leads to market failure

17. The two most important and cardinal problems of economics are
A. food and water
B. ends and needs
C. scale of preference and nature
D. scarcity and choice

18. Who defined economics as the study of mankind in the ordinary business of life?
A. Alfred Marshalls
B. John Stuart Mills
C. Prof. Lord Robbins
D. Adams smith

19. Decision making regarding the use of scarce resources is known as

A. needs
B. choice
C. scarcity
D. scale of preference

20. The next best possible alternative forgone is an economic concept known as
A. choice
B. scarcity
C. opportunity cost
D. ends
21. The deliberate slowing down of work by striking workers during a trade dispute is
called
A. threat to strike
B. work to rule
C. picket lines
D. negotiation

22. The outward shift in the PPC signifies

A. recession
B. inefficiency
C. low production
D. economic growth

23. How many regions can be identified on the Production Possibility Curve?
A. 2
B. 3
C. 4
D. 5

24. Regions below the PPC is a sign of

A. resource overuse
B. good resource
C. inefficiency in resource use
D. maximum production

25. Land, labour, capital and enterprise are all examples of

A. Renewable resources
B. factors of production
C. natural resources
D. human resources

26. Economics is a _______ science

A. biological
B. physical
C. social
D. natural

27. Which of these is not a scientific method adopted in the study of economic
phenomena?
A. Observation
B. Testing of facts
C. Theory
D. Motivational speeches

28. Fishing, farming and lumbering are all examples of ____ activities.
A. secondary
B. tertiary
C. universal
D. primary

29. Developing countries engage more in ____ activities.

A. primary and secondary
B. secondary and tertiary
C. tertiary and primary
D. primary

30. Which of these is not used by trade unions during a trade dispute with an
employer.
A. Picket lines
B. Threat to strike
C. Blacklist
D. Strike

31. The _____ produce goods and services in the private sector of the economy while
the ______ produces goods and services in the public sector respectively.
A. Firms and government
B. Households and firms
C. Government and shops
D. Government and households

32. Which of this is used by both employers’ associations and trade unions during a
trade dispute?
A. Blacklist
B. Lockout
C. Threat to strike
D. Negotiation

33. Countries like UK, Canada and US have greater proportion of their work force in
the _____ sectors
A. primary and secondary
B. tertiary and primary
C. primary and manufacturing
D. secondary and tertiary

34. Which of these is not a feature of a sole trading business?

A. Limited liability
B. No legal status
C. The business identity is the same as that of the owner
D. Managed by one person

35. The public company has the following features except ____
A. It uses the PLC name
B. There is unlimited liability
C. It has a legal name
D. It has a separate entity with the owners

36. The type of capital that changes its form during and after production is
A. fixed capital
B. circulatory capital
C. liquid capital
D. social capital

37. The partnership business is formed between persons from

A. 1 – 50
B. 2 – infinity
C. 7 – 50
D. 2 – 20

38. From the point of view of the society, a business is worth it when
A. private benefits = private costs
B. social benefits > social costs
C. the business pays workers well
D. social costs> social benefits

39. From the point of view of the individual, a business is worthwhile when
A. it has no social cost
B. it has no social benefits
C. private benefit < price cost
D. private benefit > private cost

40. Which of these is not important from an economic point of view?

A. capital
B. labour
C. raw materials
D. air
THEORY

ANSWER ANY THREE OF THE FOLLOWING QUESTIONS BELOW.

1. In July 2009, demonstrations by Americans held up the construction of two

large cellulose factories on the Canada-America border. The demonstrators
claimed that the factories would pollute the local river- harming local tourism,
farming and fishing.

(a) Identify two private costs of building the factories. (2)

(b) Explain why pollution is an external cost. (2)
(c) Explain three types of market failure. (6)

2. In a tabular form, state five differences each between a public company and a
private company. (10)

3. (a) Identify and explain three instruments used by employees during a trade
dispute. (6)
(b) Identify four features of a cooperative society. (4)

4. Discuss whether or not capitalism would be more beneficial for a developing

country like Nigeria? (10)