MID TERM TEST FIRST TERM SS 1 ECONOMICS

First Term Mid Term Test

SUBJECT: ECONOMICS Class: SS1 Time:

Economics can be defined as the study of (a) how to spend the family income efficiently (b) how to find

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
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
Human wants are unlimited because (a) production is inadequate (b) resources have alternative uses (c) new wants always rise (d) resources are limited

A basic economic problem of any society is (a) high level of illiteracy (b) irregular power supply (c) population growth (d) resource allocation
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
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

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
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
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

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
The demand for torch and batteries is an example of (a) competitive demand (b) composite demand (c) complementary demand (d) derived demand
The reward to land as a factor of production is (a) profit (b) rent (c) interest (d) wages

The following are examples of economic goods except (a) bottled water (b) air (c) household utensils (d) shelter
A tent making factory offers (a) personal services (b) indirect services (c) social services (d) reflex services
The sum of items divided by the number of items is the (a) frequency (b) mean (c) median (d) mode

Find the median of the following set of scores 8,9,6,5,10. (a) 9 (b) 8 (c) 6 (d) 5
Goods for which demand rises as income rises are (a) complementary goods (b) inferior goods (c) normal goods (d) substitutes
The slope of a supply curve is (a) horizontal (b) uniform (c) positive (d) vertical

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
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
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

Which of the following is an invisible item (a) banking services (b) petroleum product (c) processed rice (d) processed milk
Middlemen in an economy perform the function of (a) distribution (b) exchange (c) hoarding (d) protection
The study of economics enables individual to (a) change job (b) evade taxes (c) accumulate huge wealth (d) make rational decisions

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
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
The rewards to capital as a factor of production is (a) rent (b) wage (c) interest (d) commission

Mining is an example of (a) tertiary production (b) primary production (c) secondary production (d) advanced production
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

Quantity demanded (Qd) = 40 – 4p

Quantity supplied (Qs) = 12p – 24

Where p is price in naira

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

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