ECONOMICS FIRST TERM EXAMINATION SS 2

FIRST TERM

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

 SUBJECT: ECONOMICS             

DURATION: 2HR                

CLASS: SSS 2

1. Which of the following is an economic activity? Attending a town’s meeting.    B.  A visits to the stadium. C.  Payment of school fees   D. Arresting a petty thief
2. Which of the following cost curve is not u-shaped? The (a)marginal cost curve (b)average fixed cost curve (c)average total cost curve (d)average variable cost curve
3. Frictional unemployment occurs when (a) there is a change in the techniques of production (b)job seekers lack information where job exists (c)bad weather prevents workers from progressing (d)job seekers have disabilities
4. Which of the following will increase the demand for labour?(a)increase wage rate (b)labour demand for output (c)low wage rate (d) low marginal productivity
5. Production of firms and Industries is not influenced by(a)availability of raw materials (b)existence of other firms (c)nearness to the source of money supply (d)government policy
6. 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
7. Cyclical unemployment is the one associated with (a)inadequate information (b)trade fluctuations (c)structural changes (d)seasonal changes
8. Perfect knowledge of events in a perfect market will be made possible by the existence of (a)many buyers and sellers (b) homogeneous products (c)means of communication (d) large member of traders
9. Which of the following measures will not encourage industrialization in West Africa ?(a)taking over of all forms of industries by the government (b)provision of social infrastructure (c)giving tax incentives especially to infant industries (d)using tariffs to discourage the use of imported items
10. In economics, a market is defined as any (a)agreement made for consumers to buy all they need (b)agreement to sell commodity at low prices (c)arrangement made for producers to sell alltheir goods (d)arrangement whereby buyers and sellers are in close contact
11. The following constitutes the criteria for identifying an economic system except(a)ownership of resources (b)scarcity of resources (c)method of decision making (d)motivation for production
12. The movement of labour from one grade to an entirely different grade is an example of (a)industrial labour mobility (b)horizontal occupational mobility (c) vertical occupational mobility (d)geographical mobility
13. Which of the following is not a strong basis for trade union demand for higher wages? The (a)company is making higher profit (b)productivity of the worker has increased (c) members of the union have high qualification (d)commodity produced by the worker is very essential
14. An industry is best described as (a)firms that sells a set of closely related commodities (b)a factory that produces different lines of products(c)a group of firms that sell a closely related set of products (d)industrial concern that is into production and selling goods
15. Which of the following statement is correct?(a)as total utility increases the marginal utility also increases (b)the marginal utility is always zero whenever the total utility reaches the maximum (c)the total utility is at maximum whenever the marginal utility is at its minimum(d)there is no relationship between total utility and the marginal utility
16. Points outside a production possibility curve indicate (a) unattainable production levels  (b) attainable production levels  (c) inefficient but attainable production levels  (d) optimum production levels (a) natural monopoly  (b) state monopoly  (c) legal monopoly (d) discriminating monopoly
17. One of the problems facing industrial development in West African countries is (a) inadequate large market  (b) inadequate infrastructure  (c) inadequate supply of labour  (d)  unavailability of natural resources
18. The allocation of goods and services in a free market economy is performed by (a) the price system  (b) the banking system  (c) the central planning body  (d) government
19. If a firms price is less than average cost but more than average variable cost, the firm is covering (a) all of its fixed cost and variable cost  (b) all of its fixed cost and part of variable cost  (c) all of its variable cost and part of fixed cost  (d) part of its fixed cost and part of variable cost
20. The type of monopoly that develops as a result of granting patent right is known as When the marginal product is negative, the total product will be (a) Constant  (b) at a maximum  (c) increasing  (d) decreasing
21. A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as (a) perfect competition (b) monopoly  (c) Oligopoly  (d) imperfect competition
22. In which of the following markets does a firm have power to make super normal profits both in the short run and long run? (a) monopoly  (b) duopoly  (c) oligopoly  (d) monopoly
23. The component of three sector economy are (a)banks, schools and hospital (b)workers, producers and marketers (c)households, firms and the government    (d)producers, retailers and wholesalers In the long-run factors of production are considered to be (a)at maximum (b)fixed (c)variable (d) increasing
24. Which of the following is the main outcome of a trade union’s interference with the wage rate? Wages are (a) lowered but employment level remains unchanged  (b) lowered but more employment opportunities are created  (c) increased and employment levels are unchanged  (d) increased but employment levels are reduced
25. Which of the following statement is not a feature of a monopoly (a) seller is allowed to fix his own price  (b) buyers and sellers are price takers  (c) new entrances are restricted  (d) there is only one seller of the commodity.
26. The movement of labour from one grade to an entirely different grade is an example of (a)industrial labour mobility (b)horizontal occupational mobility (c) vertical occupational mobility (d)geographical mobility
27. Which of the following is not a strong basis for trade union demand for higher wages? The (a)company is making higher profit (b)productivity of the worker has increased (c) members of the union have high qualification (d)commodity produced by the worker is very essential
28. Which of the following statement is correct?(a)as total utility increases the marginal utility also increases (b)the marginal utility is always zero whenever the total utility reaches the maximum (c)the total utility is at maximum whenever the marginal utility is at its minimum(d)there is no relationship between total utility and the marginal utility
29. Productive resources can also be called (a) principle of production    (b) factors of production    (c) items of production    (d) labour and material resources.
30. Production covers all the following except when (a) utility is created   (b) a good is manufactured   (c) a commodity is consumed    (d) individual want

THEORY:  Answer one question only from this section

1.  The table below shows the various possible combinations of military and civilian goods produced by a country, using the available resources and technology.  Use the table to answer the questions the questions that follow.

(a)      Draw the production possibility curve (PPC)

(b)      Indicate points S and K at which production is not feasible

(c)      Indicate points M and N at which resources are not efficiently utilized

(d)      What does the downward slope of the PPC indicate?

(e)      Why is production not feasible at points S and K?

Use the table above to answer the following questions (a) complete the table by calculating the missing figures P,Q,R,S,T,U (b) At what output is profit maximized ? (c) calculate the  profit when quantity sold is 5 (d) At what output does MC begin to rise  ?

Answer two from this section

3. Define market. (b)      Explain four characteristics of a perfect market

(c)      Explain 4 advantages and 3 disadvantages of monopoly

(d)      With the aid of a diagram, explain the super normal profit of a monopolist

4a.      Define unemployment     (b)           State and explain five types of unemployment

(c)      (i) Define wages (ii) Discuss five factors responsible for variation in wages

5a.      Define (i) Labour market (ii Demand for labour

(b)      Explain 4 factors affecting the demand for labour

(c)      Discuss 4 factors affecting the efficiency of labour

(d)      Explain the term mobility of labour

6a.      What is capitalism?     (b)      State and explain 5 main features of capitalism?

(c)      Explain 4 advantages and 4 disadvantages of a socialist economic system

(d)      State and explain four advantages and two disadvantages of the mixed economic system

(e)      Explain any three weapons that can be used by a trade union during a trade dispute