MID TERM TEST FIRST TERM SS 1 ECONOMICS

First Term Mid Term Test 

   SUBJECT:  ECONOMICS   Class: SS1        Time:

1. Economics can be defined as the study of (a) how to spend the family income efficiently (b) how to find 
2. Demand in economics is synonymous with (a) needs (b) want of the answer (c) all goods demanded in the market (d) want supported with ability to pay
3. All the following factors will cause a change in demand except (a) the customer’s income (b) the consumer’s taste (c) colour of the commodity (d) a change in weather condition
4. Human wants are unlimited because (a) production is inadequate (b) resources have alternative uses (c) new wants always rise (d) resources are limited
5. A basic economic problem of any society is (a) high level of illiteracy (b) irregular power supply (c) population growth (d) resource allocation
6. Households make economic decisions because they want to (a) make more profit (b) increase their salaries and wages (c) increase their purchase (d) maximize their satisfaction
7. Other things being equal, an increase in supply will lead to (a) a full in price and an increase in quantity bought and sold (b) an increase in price and increase in quantity bought and sold (c) a full in price and a fall in quantity bought and sold (d) an increase in quantity supplied and demand only
8. 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
9. Scale of preference is important for the following reasons except (a) satisfying wants (b) making rational choice (c) making optimum allocation of resources (d) using scarce resources efficiently
10. Which of the following cannot be classified as land in economics (a)   deposit in the ground (b) a lake used for irrigation (c) a bulldozer for clearing farm land (d) grazing field for cattle
11. If the quantity of men’s hat demanded per week is represented by the function Qd = 20 – 13p, where p is price, how many hats are demanded when the price is $9.00 (a) 11 (b) 17 (d) 23 (e) 47
12. The demand for torch and batteries is an example of (a) competitive demand (b) composite demand (c) complementary demand (d) derived demand
13. The reward to land as a factor of production is (a) profit (b) rent (c) interest (d) wages
14. The following are examples of economic goods except (a) bottled water (b) air (c) household utensils (d) shelter 
15. A tent making factory offers (a) personal services (b) indirect services (c) social services (d) reflex services
16. The sum of items divided by the number of items is the (a) frequency (b) mean (c) median (d) mode
17. Find the median of the following set of scores 8,9,6,5,10. (a) 9 (b) 8 (c) 6 (d) 5
18. Goods for which demand rises as income rises are (a) complementary goods (b) inferior goods (c) normal goods (d) substitutes
19. The slope of a supply curve is (a) horizontal (b) uniform (c) positive (d) vertical
20. Equilibrium price is the price at which quantity (a) demanded is greater than quantity supplied (b) supplied is greater than quantity supplied (d) supplied equals quantity produced
21. One advantage of the sole proprietorship over other firms of business organizations is that it can (a) make very high profits (b) employ many workers (c) keep its affairs private (d) produce in a very large scale 
22. The role of government in promoting agricultural development include the following except (a) paying the wages of all farmers (b) Establishing and funding research (c) formulation of policies (d) provision of rural infrastructure
23. Which of the following is an invisible item (a) banking services (b) petroleum product (c) processed rice (d) processed milk
24. Middlemen in an economy perform the function of (a) distribution (b) exchange (c) hoarding (d) protection
25. The study of economics enables individual to (a) change job (b) evade taxes (c) accumulate huge wealth (d) make rational decisions
26. Most of the problems of economics rises as a result of (a) competing demand for scarce resources (b) increase in the demand for more goods and services (c) the desire of producers to supply more goods and services (d) the need to reduce the level of poverty
27. Which of the following tools of economic analysis is used when data contains more than one category (a) Bar charts (b) component bar charts (c) graphs (d) symbolical statements
28. The rewards to capital as a factor of production is (a) rent (b) wage (c) interest (d) commission
29. Mining is an example of (a) tertiary production (b) primary production (c) secondary production (d) advanced production 
30. An owner manager of a firm can also be called (a) a shareholder (b) an entrepreneur (c) an employer (d) a chairman

THEORY

Answer any three question

1. What is economics?

1. Highlight five (5) importance of studying economics
2. Explain all the economic concept
3. State the law of demand
4. Highlight five (5) factors affecting demand
5. The demand and supply function of a commodity are given below

Quantity demanded (Qd) = 40 – 4p

Quantity supplied (Qs) = 12p – 24

Where p is price in naira

1. Determine the equilibrium price and quantity bought and sold
2. If the price is fixed at 6.00 what is the magnitude of excess supply

5. List and explain the types of production 
6. Write short notes on the following factors of production (i) Land (ii) Labour (iii) Capital (iv) Entrepreneur