Economics Third Term Examination SS 1 THIRD TERM

    THIRD TERM

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.   SUBJECT   ECONOMICS     CLASS: S.S.S 1       DURATION 2HR

1. Price fixed above the equilibrium is to (a) protect agricultural producers (b) discourage agricultural producers (c) lower the prices of agricultural produce (d) favour consumers
2. The types of production that involves the tapping and harnessing of natural resources is (a) primary production  (b) secondary production (c) tertiary production (d) industrial production
3. A firm’s main aim is to (a) survive in business (b) maximize profits (c) increase its market share (d) satisfy the ambitions its managers.
4. Human wants are unlimited because (a) production is inadequate (b) resources have alternative uses (c) new wants always arise (d) resources are limited
5. The profit of a producer is the difference between (a) total cost and marginal cost (b) total revenue and total cost (c) average cost and total cost (d) price and total cost
6. Any price below the equilibrium price will lead to (a) increase in supply (b) excess demand (c) equality of demand and supply (d) decrease in demand
7.   Given the demand function Qd = 20 – 1/2 P, what is Qd when P is $12? (a) 6 units (b) 10 units (c) 12 units (d) 14 units
8. Which of the following is a function of money? (a) medium of communication (b) measure of securities (c) store of value (d) discounting bills of exchange
9. Which of the following is an asset of a commercial bank? (a) reserve funds (b) shareholders’ capital (c) customers’ deposits (d) treasury bills
10. The central bank controls money supply through all the following except (a) lending to the public (b) bank rate (c) legal reserve requirements (d) open market operation
11. The function of the central bank as a lender of last resort means that when all other sources fail, (a) the consumer can always borrow money from the central bank (b) the government can ask the central bank to print more money (c) commercial banks can raise loans from the central bank (d) commercial banks can deposit money with the central bank.
12. Palm oil and palm kernel have (a) competitive supply (b) excess supply (c) joint supply (d) composite supply
13. One good reason for the elimination of middlemen is that they(a) cause increase in price (b) help in price stability (c) grade and blend goods (d) are too many.
14. Goods which have to be paid for are known as (a) physical goods (b) economic goods (c) free goods (d) intangible goods
15. An agricultural production process which uses more machinery relative to labour is referred to as (a) large – scale farming (b) capital intensive farming (c) commercial farming (d) land intensive farming
16. All rates of interest in a country are influenced by the (a) bank rate (b) population growth rate (c) wage rate (d) mortgage rate
17. Equilibrium price is the price at which quantity (a) demanded is greater than quantity supplied  (b) supplied is greater than quantity demanded (c) demanded is equals to quantity supplied (d) supplied equals quantity produced
18. The following are reasons for the failure of agricultural policies in West Africa except  (a) vague policy statement  (b) negation of policies (c) creation of agro- service stations (d) provision of obsolete implements
19. A normal demand curve slopes (a) downwards from left to right (b) upwards from right to left (c) downwards from right to left (d) upwards from left to right
20. Money will serve as a standard of deferred payment if it is (a) homogenous (b) durable (c) easily recognized (d) stable in value.
21. The following are features of subsistence agriculture except (a)little capital (b) processing of raw materials (c) small allotments of land (d) use of crude implements
22. Which of the following is a legal tender? (a) bank notes (b) bank overdrafts (c) bills of exchange (d) money order
23. Economics is regarded as a science because it (a) studies laws that govern human behaviour (b) uses scientific method to explain human behaviour  (c) makes use of controlled experiments to explain human behaviour (d) resources are unlimited
24. Which of the following is not an effect of many middlemen in the chain of distribution? (a) shortage of commodities (b) low retail prices (c) hoarding of goods (d) high retail prices
25. The market supply curve slopes upwards from left to the right indicating that (a) producers pay high taxes (b) two commodities can be supplied at the same time (c) at a lower price, less is supplied (d) at a lower price, more is supplied and demanded.
26. Which of the following is a function of a retailer? (a) banking services (b) hoarding services  (c) storage services (d) after sales services
27. Which of the following is not a form of money? (a) coins (b) bank notes (c) bank balance (d) bank deposit
28. A demand schedule shows the quantities of goods that are (a) bought at given prices at a time (b) supplied at given prices at a time (c) produced at given prices at a time (d) reserved for future consumption
29. The action of government to forgo road construction in order to provide more health facilities denotes (a) sound economic decision (b) opportunity cost (c) practicable government policy (d) scale of preference
30. The slope of a supply curve is (a) horizontal (b) uniform (c) positive (d) vertical
31. The quality of money that emphasizes its uniformity is referred to as  (a)  acceptability (b) divisibility  (c) durability (d) homogeneity
32. A basic economic problem of any society is  (A) High level of illiteracy  (B) irregular power supply  (C) population growth  (D) resource allocation
33. Which of the  following factors can facilitate  mobility of labour? (a)  cost of transferring to another place (b)  discriminating from employers (c) education and training (d) social  ties
34. Which of the following best explains what to produce    (A)   How much goods are to be produced  (B)  the combination of resources to be used  (C) Which goods and services to be produced.  (D) How many wants are to be satisfied 
35. Which of the following problems arises where there are more than one technically possible methods of production?  (A) Where to produce  (B) For whom to produce  (C) How to produce  (D) What to produce
36. Labour can be efficient when there are (A) adequate tools to work with  (B) high levels of employment  (C)  limited vacancies  (D) government restrictions 
37. Productive resources can also be called   (A) principle of production  (B) factors of production  (C) items of production  (D) labour and material resources
38. Production covers all the following except when  (A) Utility is created  (B) a good is manufactured  (C) a commodity is consumed  (D) individual wants are satisfied
39. The reward to capital as a factor of production is  (A) rent  (B) wage  (C) Interest  (D) Commission
40. Mining is an example of  (A) tertiary production  (B) Primary production  (C) Secondary production  (D) advanced production

ESSAY-SECTION A

Answer ONE question ONLY from this section

1. Given that the prices and quantities supplied per period of time in litres of gasoline is expressed as : 

Qs = 25 + 0.25 P ,Where Qs is quantity supplied  P is Price 

1. Determine the quantity supplied when price per litre is 

1. 0 Naira (ii) 24 Naira (iii) 40 Naira (iv) 60 Naira (v) 80 Naira

1. From your calculations in (a) (i) present the supply schedule (ii) draw the supply curve

1. Supply and demand schedule

Use the schedule to answer the following questions:

1. At what price and quantity does the market attain equilibrium and why?
2. At what price does the market exhibit excess demand and by how many units?
3. At what price does the market exhibit excess supply and by how many units?
4. At what price will the seller be willing to sell most? What quantity will he be willing to sell at that price?

SECTION B

ANSWER TWO QUESTIONS ONLY FROM THIS SECTION

3ai.    Define Demand 

3aii.    Define Supply

3b.    write notes on

1. Law of Demand
2. Demand Schedule
3. Law of supply
4. Supply schedule

4a.    State and explain types of demand

4b.    State and explain types of supply

4c.    State 5 factors affecting supply. 

5a.    What is money? 

5aii.    Explain five characteristics

5bi.    What is trade by barter?

5bii.    Highlight four problems posed by trade by barter

6a.    Discuss 4 the functions of money

6b.    Describe any five functions of the central Bank of Nigeria (CBN)

6c.    Explain any four functions of commercial banks.

  7a.     What is distributive trade?

7bi.     who is a retailer?

7bii     Distinguish between the functions of a wholesaler and retailer in the distribution of commodities.

1. Describe any five problems of distribution in Nigeria
2. Discuss the circumstances that may warrant the by- passing of the middlemen.