First Term Examination Test Questions Economics SS 1 First Term Lesson Notes

Economics SS 1 First Term Lesson Notes

Week 12: Examination of the Topics Covered in the First Term

Examination Instructions for Teachers and Students

Instructions for Teachers:

1. Ensure a Quiet Environment:
   Create a peaceful atmosphere to minimize distractions. Make sure all students are seated properly.
2. Clarify the Rules:
   Explain the instructions clearly to the students. Emphasize that the exam is to assess their understanding, not just their ability to memorize.
3. Monitor the Exam Closely:
   Walk around the classroom to ensure that all students are working independently and without assistance.
4. Do Not Tolerate Malpractices:
   Strictly prohibit any form of cheating or malpractice during the examination. This includes:
   • Copying from other students.
   • Using unauthorized materials (notes, phones, etc.).
   • Communicating with other students during the exam. Any student found engaging in malpractice will be reported immediately.
5. Time Management:
   Allocate sufficient time for each section of the exam. Keep an eye on the clock and give time reminders to students.
6. Provide Assistance if Necessary:
   If a student has a question about the exam, direct them to the relevant section or provide clarification, but do not offer any answers.

Instructions for Students:

1. Be Honest and Focused:
   This exam is to assess what you have learned. Do not engage in any form of cheating. If caught cheating, you will be disqualified.
2. Read Each Question Carefully:
   Make sure you fully understand the question before answering. Read all the instructions and options carefully.
3. Answer All Questions:
   Do not leave any questions unanswered. If you are unsure about an answer, move on and come back to it later if you have time.
4. Use Your Own Knowledge:
   Rely on what you have learned in class. Do not ask your classmates for help during the exam.
5. Manage Your Time:
   Keep track of time to ensure you have enough to answer all sections of the exam. Do not spend too much time on one question.
6. Stay Calm and Focused:
   Stay relaxed and think carefully before writing your answers. Do not rush.
7. Respect Others:
   Do not disturb your classmates. Work quietly and focus on your own paper.

Part A: Objective Questions

30 Fill-in-the-Blank Questions with Options (a, b, c, or d)

1. Economics is the study of how people make choices to satisfy their _________.
   a) Wants
   b) Needs
   c) Resources
   d) Prices
2. The law of ________ states that as the price of a good increases, the quantity demanded decreases.
   a) Demand
   b) Supply
   c) Cost
   d) Value
3. ________ is the reward for land in production.
   a) Rent
   b) Wages
   c) Interest
   d) Profit
4. ________ is the process of dividing work into smaller tasks to improve efficiency.
   a) Specialization
   b) Division of labor
   c) Innovation
   d) Economies of scale
5. The ________ of scale occurs when firms reduce costs by increasing production.
   a) Diseconomies
   b) Marginal
   c) Internal economies
   d) External economies
6. ________ cost refers to the value of the next best alternative that is forgone.
   a) Opportunity
   b) Total
   c) Marginal
   d) Fixed
7. ________ is the study of individual markets and economic agents.
   a) Microeconomics
   b) Macroeconomics
   c) Behavioral economics
   d) International economics
8. ________ is the reward for labor in the production process.
   a) Rent
   b) Interest
   c) Wages
   d) Profit
9. The law of ________ states that as the price of a good rises, the quantity supplied increases.
   a) Demand
   b) Supply
   c) Profit
   d) Cost
10. ________ economies of scale benefit all firms in an industry when the industry grows.
    a) Internal
    b) External
    c) Diseconomies
    d) Marginal
11. The reward for capital is called ________.
    a) Rent
    b) Wages
    c) Interest
    d) Profit
12. ________ of labor refers to workers focusing on a specific task to improve efficiency.
    a) Specialization
    b) Division
    c) Economies
    d) Innovation
13. The production possibility frontier (PPF) shows the ________ between two goods.
    a) Value
    b) Trade-off
    c) Cost
    d) Opportunity
14. The reward for entrepreneurship is ________.
    a) Interest
    b) Profit
    c) Rent
    d) Wages
15. The ________ of scale happens when the company grows too large, leading to inefficiency.
    a) Diseconomies
    b) Economies
    c) Marginal
    d) Total
16. The ________ curve shows the relationship between price and quantity demanded.
    a) Supply
    b) Cost
    c) Demand
    d) Profit
17. ________ is the process of organizing the factors of production to make goods and services.
    a) Management
    b) Entrepreneurship
    c) Investment
    d) Innovation
18. ________ is the cost of producing one more unit of a good.
    a) Total cost
    b) Marginal cost
    c) Fixed cost
    d) Opportunity cost
19. ________ economies of scale happen inside a firm as it grows larger.
    a) Internal
    b) External
    c) Marginal
    d) Diseconomies
20. The ________ system helps allocate resources by determining the prices of goods and services.
    a) Market
    b) Price
    c) Financial
    d) Economic
21. The ________ is the price at which the quantity demanded equals the quantity supplied.
    a) Cost
    b) Market equilibrium
    c) Value
    d) Profit
22. ________ is the study of how the economy works on a national or global scale.
    a) Microeconomics
    b) Macroeconomics
    c) Behavioral economics
    d) Financial economics
23. ________ occurs when more resources are used, but output per unit decreases.
    a) Diminishing returns
    b) Marginal returns
    c) Opportunity cost
    d) Diseconomies of scale
24. ________ cost is the total value of all resources used in production.
    a) Opportunity
    b) Marginal
    c) Total
    d) Fixed
25. ________ is the factor of production that involves human effort and skills.
    a) Land
    b) Labor
    c) Capital
    d) Entrepreneurship
26. ________ helps allocate goods and services by setting prices.
    a) Market
    b) Price system
    c) Planning
    d) Exchange
27. The law of ________ states that as more units of a factor are added, the output increases at a decreasing rate.
    a) Demand
    b) Supply
    c) Diminishing returns
    d) Cost
28. ________ economies of scale are the benefits that occur when the industry grows as a whole.
    a) Internal
    b) External
    c) Diseconomies
    d) Financial
29. ________ is the reward for land, and it is paid to the owner of land.
    a) Interest
    b) Rent
    c) Wages
    d) Profit
30. The ________ of labor refers to dividing work into smaller tasks to improve efficiency.
    a) Specialization
    b) Division
    c) Capitalization
    d) Economies of scale

Part B: Theory Questions

30 Simple Short Answer Questions

1. What is economics, and what does it aim to understand?
2. What is the law of demand? Provide an example.
3. Explain the term “scarcity” in economics.
4. What is the concept of opportunity cost?
5. Describe the role of entrepreneurship in the production process.
6. What are internal economies of scale? Give an example.
7. How do external economies of scale benefit firms in an industry?
8. What are the four factors of production?
9. What is the reward for labor in production?
10. How does specialization help increase efficiency in production?
11. What is the meaning of “division of labor” in economics?
12. How does the law of supply operate in the market?
13. What is the production possibility frontier, and why is it important?
14. Explain what diseconomies of scale mean.
15. What is the difference between microeconomics and macroeconomics?
16. Define marginal cost and explain its significance.
17. What is meant by the price system in economics?
18. How does demand and supply determine prices in the market?
19. What are the rewards for land, capital, and entrepreneurship?
20. How do economies of scale affect the cost structure of a firm?
21. What is meant by diminishing returns in the context of production?
22. Explain the concept of market equilibrium.
23. What is the difference between fixed cost and variable cost?
24. How does the law of diminishing returns affect production?
25. What are the key determinants of supply in a market?
26. What are external economies of scale? Provide an example.
27. How do government policies affect demand and supply in an economy?
28. Explain the concept of elasticity of demand.
29. What factors can shift the demand curve in economics?
30. What is the relationship between price and quantity supplied?

Part C: True or False Questions

30 True or False Questions

1. Economics studies how to make goods and services scarce. (False)
2. Scarcity forces people to make choices. (True)
3. The law of supply states that as the price of a good rises, the quantity supplied decreases. (False)
4. Opportunity cost is the cost of producing one more unit of a good. (False)
5. The reward for labor is interest. (False)
6. Marginal cost is the additional cost of producing one more unit of a good. (True)
7. External economies of scale benefit individual firms rather than the entire industry. (False)
8. Division of labor makes production more efficient. (True)
9. The price system determines the allocation of resources in an economy. (True)
10. The production possibility frontier shows all possible combinations of two goods that can be produced. (True)
11. Diseconomies of scale occur when a firm becomes too small to benefit from economies of scale. (False)
12. The law of demand states that higher prices decrease the quantity demanded. (True)
13. Specialization helps workers become more efficient in performing a single task. (True)
14. The reward for capital is wages. (False)
15. The law of diminishing returns explains that as more factors are added, output will always increase. (False)
16. Entrepreneurs organize resources to produce goods and services. (True)
17. The marginal product is the additional output produced by one more unit of input. (True)
18. Internal economies of scale only affect large firms. (False)
19. A price system allocates resources based on the ability to pay. (True)
20. The law of supply states that as price increases, the quantity supplied decreases. (False)

Part D: Fill in the Gaps Questions

30 Fill-in-the-Blank Questions Without Options

1. The reward for land in production is called ________.
2. The law of demand states that as the price of a good increases, the quantity demanded ________.
3. ________ cost is the cost of producing one more unit of a good.
4. The four factors of production are land, labor, capital, and ________.
5. ________ is the reward for labor in the production process.
6. ________ economies of scale lead to higher production efficiency as a firm grows larger.
7. The ________ curve shows the relationship between price and quantity supplied.
8. The ________ is the reward for capital in the production process.
9. The concept of opportunity cost refers to the value of the ________ best alternative.
10. ________ economies of scale benefit all firms in an industry when it grows larger.
11. The production possibility frontier shows the maximum possible output of ________ goods.
12. ________ economies of scale occur when a firm becomes too large and inefficient.
13. ________ is the process of dividing work into smaller tasks to improve efficiency.
14. The law of diminishing returns shows that adding more resources will increase output at a ________ rate.
15. The price system helps allocate resources based on ________.
16. The ________ cost is the value of the next best alternative.
17. ________ is the reward for entrepreneurship in the production process.
18. The marginal product is the additional output produced by one more unit of ________.
19. The ________ of scale occurs when costs increase as the firm grows too large.
20. ________ is the study of individual markets in economics.

This lesson note serves as a thorough review and revision for the SS1 Economics students. It ensures that they are prepared for their final exam by assessing key concepts in an accessible and straightforward manner.