ECONOMICS MOCK EXAMINATION

Class: SS 3
Subject: Economics
Time Allowed: 2 Hours

SECTION A: OBJECTIVE QUESTIONS

Answer all questions in this section. Choose the correct option for each question.

1. The group of countries in Southeast Asia whose economies are referred to as the Asian Miracle is
   A. ASEAN B. Asian Tigers C. China D. America

2. What is essential to boost a country’s economy?
   A. Debt B. High savings rate C. Transfer payments D. Risk

3. The five Asian Tiger economies became significantly developed within
   A. 20 years B. 35 years C. 40 years D. 100 years

4. The Ikeda Plan was unveiled in
   A. 1965 B. 1960 C. 1950 D. 1945

5. Japan experienced what during the period from 1960 to 1970?
   A. Recession B. Double-digit growth C. Inflation D. Unemployment

6. The value added into a company by an employee is known as
   A. Human capital B. Capital C. Physical asset D. Developmental capital

7. Physical capital is also referred to as
   A. Human capital B. Non-human capital C. Labour D. Humans

8. Which of the following is not a characteristic of human capital?
   A. It is mobile B. It is tangible C. It has feelings D. It requires motivation

9. The emigration of individuals with technical skills from one country to another is known as
   A. Mobility of labour B. Brain drain C. Travelling D. Emigration

10. All of the following are causes of brain drain except
    A. Poor opportunity B. Political instability C. Marriage D. Social environment

11. Where was petroleum first discovered in commercial quantity in Nigeria?
    A. Enugu B. Oloibiri C. Kaduna D. Ogoja

12. Which company first discovered petroleum in commercial quantity in Nigeria?
    A. Shell BP B. Agip C. Gulf D. Butman

13. Which of the following is not a function of NNPC?
    A. Production of crude oil B. Refining of crude oil
    C. Exportation of crude oil D. Exploitation of crude oil E. Pricing of crude oil

14. Nigeria’s major foreign exchange earner is
    A. Agriculture B. Sports C. Tourism D. Petroleum

15. A mono-product economy produces
    A. Only intermediate products B. Agricultural products
    C. One major commodity D. Processed goods

16. The industry that converts raw materials into finished goods is
    A. Conversion B. Manufacturing C. Construction D. Power

17. Which of the following is an example of manufacturing industry?
    A. Shoe making B. Road construction C. Service D. Banking

18. A contribution of the construction industry to economic development is
    A. Decreasing GDP B. Unemployment of graduates
    C. Stimulation of other sectors D. Shortage of infrastructure

19. The manufacturing industry gets its raw materials from which sector?
    A. Secondary B. Primary C. Tertiary D. Semi-secondary

20. One of the problems of manufacturing and construction industries except
    A. Lack of skilled personnel B. High illiteracy rate
    C. Lack of funds D. Surplus funds

21. The service industry is also known as the
    A. Processing industry B. Tertiary industry C. Construction industry D. Mining industry

22. How many types of service occupations exist?
    A. Five B. Two C. Ten D. Four

23. All the following belong to indirect service except
    A. Soldiers B. Lawmakers C. Civil servants D. Housemaids

24. Banking, transport, and insurance are referred to as
    A. Trade B. Commerce C. Auxiliaries to trade D. Occupation

25. Which of the following is not a reason for the growth of the service sector?
    A. Urbanization B. Privatization C. Increase in demand D. Decrease in urbanization

26. Domestic and international trade are similar except that
    A. Both use land, water, and air transport
    B. Goods are exchanged
    C. Services are exchanged
    D. Same currency is used as medium of exchange

27. International trade is necessary mainly because
    A. No country can live in economic isolation
    B. All countries have the same resources
    C. Countries want to build up foreign exchange
    D. Some countries have comparative advantage
    E. Global demand and supply is increasing rapidly

28. International trade occurs because of differences in
    A. Production cost B. Language C. Currency D. Government policy

29. Instruments used to restrict imports include
    A. High tariffs B. Price index C. Excise duties D. Bank rates E. Subsidies

30. The exchange of goods and services between countries is known as
    A. Bilateral trade B. Multilateral trade C. National trade D. Home trade

31. Which does not relate to the law of comparative advantage?
    A. It was propounded by David Ricardo
    B. It emphasizes relative efficiency
    C. A country must have absolute advantage
    D. It increases total world output

32. Devaluation means
    A. Reduction in value of national currency
    B. Reduction in purchasing power of foreign currency
    C. Fall in domestic currency value against foreign currencies
    D. Decrease in foreign purchasing power

33. Dumping is the act of selling goods in a foreign market
    A. At a lower price than home market
    B. At same price as home market
    C. At cost price
    D. To encourage local producers

34. Foreign exchange control in Nigeria is enforced by
    A. Commercial banks B. Merchant banks C. Mortgage bank
    D. Central Bank E. Agricultural Development Bank

35. Exchange control helps to regulate
    A. Internal trade B. Stock exchange C. Foreign trade
    D. Barter trade E. Personal property exchange

SECTION B: THEORY QUESTIONS

Answer four (4) questions only from this section. All questions carry equal marks.

Question 1

(a) Why do countries impose restrictions on international trade? (Mention 5 reasons)
(b) Justify government restrictions on trade with foreign countries. (Explain 5 points)

Question 2

(a) State five (5) benefits of international trade.
(b) Outline five (5) obstacles to effective trade among countries.

Question 3

(a) Identify three (3) problems caused by the concentration of manufacturing industries.
(b) Discuss five (5) contributions of industries to the Nigerian economy.

Question 4

(a) Explain three (3) positive and two (2) negative effects of petroleum on the Nigerian economy.
(b) Describe the role of the Nigerian National Petroleum Corporation (NNPC).

Question 5

(a) Briefly explain five (5) factors that affect human capital development.
(b) Differentiate between Human Capital and Physical Capital using a tabular form (mention at least 4 points each).

Question 6

(a) Discuss five (5) reasons behind the rapid development of the Asian Tigers.
(b) What are the challenges facing Small and Medium Scale Enterprises (SMEs) in Nigeria? (List and explain 5)