Exam Questions Second Term SS 2 Economics

ECONOMICS

SECTION B

Answer one question only from this section

1a. The demand function for a commodity is given as Qd = 21 – 3p. Use the demand function to complete the table below –

Price =N= 0 1 3 4 5 6

Quantity demanded (kg)

b. Draw the demand curve for the completed schedule in 1(a)

c. Outline any three factors affecting demand

2. The table below shows the budgetary allocation of a country to selected sectors of the economy in a particular year. Study the table carefully and answer the questions that follow.

Sectors Amount ($million)

___________________________________________

Education 6,250

Mining 2.150

Agriculture 4,300

Communications 2,400

Health 2,900

a. Present the above information contained in the table in the form of a pie chart

b. Distinguish between a budget surplus and a budget deficit

SECTION C

Answer three questions only from this section

3a. What is supply?

3b. Describe only five determinants of supply

4a. Define the term Limited Liability

b. Explain four problems of statutory public corporations in your country

5a. What is market?

b. Explain the main features of a perfectly competitive market

6a. Explain the following systems of agriculture as practised in your country.

ECONOMICS

1.Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

A. The same as equilibrium supply

B. Greater than equilibrium supply

C. Less than the equilibrium supply

D. Determined later by government

E. None of these

A budget deficit means

A. That a country is buying more than is selling

B. That a country is selling more than is buying

C. That a government is spending more than in takes in taxation

D. That a government is spending less than it takes in taxation

E. That a government is spending as much as it takes in taxation

When elasticity is zero, the demand curve is

A. Perfectly elastic

B. Perfectly inelastic

C. Concave

D. Downward slopping

E. Circular

The following is NOT a reason for the existence of small firms

A. Scale of production is limited by size of the market

B. Expansion brings diminishing returns

C. Large firms can carter for wide markets

D. Small firms can provide personal services

E. All of the above

Inferior goods are referred to in Economics as goods

A. Whose quality is low

B. Consumed by very poor people

C. Whose consumption falls when cunsumers’ income rises

D. Which satisfy only the basic needs

E. None of the above

To discourage the consumption of harmful commodities, government should tax such commodities if they have

A. elastic demand

B. inelastic demand

C. negative demand

D. positive demand

E. unitary demand

The formular used by the Expenditure approach to calculate National income is

A. Y=C + I + X – M –G

B. Y= C + X – M – I + G

C. Y = C + I + G + X – M

D. Y = C – I + X – M + G

E. Y = C + G – X + M – I

A producer who can only influence the price of his product but canNOT determine the quantity to be sold is referred to as

A. duopoly

B. monopolist

C. monopsonist

D. oligopoly

E. perfect competitor

Government expenditure on universal basic education and subsidy on agriculture are aimed at

A. encouraging growth of the economy

B. projecting images of government

C. re-allocation of resources

D. redistribution of income and wealth

E. stabilization of the economy

Which of the following measure will NOT serves as a control during inflation period?

A. increase in personal income tax

B. increase in bank rate and interest

C. increase in government capital expenditure

D. reduction in money supply

E. reduction in government recurrent expenditure

31. Which of the following is a determinant of elasticity of supply?

A. Consumer’s income

B. Degree of necessities

C. Durability of the product

D. Number of uses of the commodity

E. Proportion of income spent on the product

Entrepreneur is associated more with

A. capital management

B. production of beverage

C. profit making

D. profit sharing

E. risk bearing

Inflation is a …………….

A. general increase in the price of a single product

B. period of economic recession

C. period of hunger

D. period of excessive money

E. persistent rise in the general price level

34. Which of these factors causes a change in the quantity demanded of a commodity?

A. Income

B. Population

C. Price of other commodities

D. Price of the commodity concerned

E. Taste and fashion

35. One of the positive contributions of the petroleum industry to Nigeria’s economic development is that it

A. creates ecological problems

B. creates political unrest

C. creates uncertainties in government revenues

D. is a major foreign exchange earner

E. suppresses agricultural development

36.

The unit for measuring changes in prices and output is called ………………. index

A. capital

B. expenditure

C. income

D. money

E. price

37. A firm is said to be a public joint-stock company when it

A. has unlimited liability

B. is administered by the public

C. is owned by the government

D. operates as a public corporation

E. sells its shares to members of the public

38.

The growth of a country’s population is affected by

A. military might of the country

B. number of births per thousand of the population

C. number of people willing to be counted

D. the amount of money in circulation

E. the number of men in the population

39. The price and quantity of crude oil and petrol sold to other countries by Nigeria is fixed by the

A. ECOWAS

B. IMF

C. OPEC

D. NNPC

E. none

40.

Taxes levied on locally manufactured goods are called

A. custom duties

B. excise duties

C. purchase tax

D. sales tax

E. VAT

Which of the following is a form of business enterprise?

A. Cartel

B. Entrepreneurship

C. Partnership

D. Stock exchange

E. Supermarket

42.

The demand curve of a perfect competitive market is infinitely elastic indicating that the firm can

A. refuse to sell any quantity

B. sell any quantity of output at the prevailing price

C. sell fixed quantity of output at the prevailing market price

D. sell less quantity

E. sell more quantity at a higher price

Through membership of the Economic Community of West African States (ECOWAS) countries have achieved

A. a large market for their products

B. emancipation of Africa

C. full employment of resources

D. higher transportation cost of goods within the region

E. military superiority over other African countries

44. Economic growth can be defined as

A. a rapid and sustained rise in real output per head

B. A rise in real income per head

C. an increase in technology only

D. insufficiency in food production

E. over population in a country

45.

46. A monopolist is a

A. duopolist

B. group of producers of related goods

C. partnership business that produces a commodity with high demand

D. single producer or seller of a commodity at cheap rate

E. single producer or seller of a commodity that has no close substitute

47.

The purchasing power of the Naira will fall when

A. worker are retrenched

B. the colour of the Naira is changed

C. the military take over

D. there is inflation

E. none

48.

The process of building up country’s capacity to process raw materials for the production of goods is known as

A. firm

B. industry

C. industrialization

D. location of industry

E. localization

49.

Which of the following is a function of the central bank?

A. Accepting deposits from the public

B. Agent of payment for individuals

C. Discounting bills of exchange

D. Issuing of currency

E. Provision of short term housing loans

50.

Which of the following is a determinant of elasticity of supply?

A. Consumer’s income

B. Degree of necessities

C. Durability of the product

D. Number of uses of the commodity

E. Proportion of income spent on the product

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