Class: S S S 1 Subject: Economics

Instruction: Answer all questions correctly from the section.

Section: A

1. The definition of economics as the science which studies human behavior as a

relationship between ends and scare means which have alternative uses was given
by_____ (a) Adams Smith (b) David Ricardo (c) Lionel Robbins (d) Robert Giffen
2. Choice is necessary because resources_____ (a) are available (b) can be found
everywhere (c) are constant (d) are scare
3. Bisi needs a book costing ₦10. If Bisi buys the book instead of the hat, the opportunity
cost of his choice is the___ (a) cost of the book (b) cost of the hat (c) ₦10 (d) book
4. Economics may be define as___ (a) the study of money and banking (b) the study of
market and prices (c) the study of production and distribution (d) the study of human
behavior in the allocation of scarce resources
5. Which of the following is NOT strictly included in the study of economics? (a) the study
of wants (b) the study of choice (c) whether a particular want satisfies a good or bad
purpose (d) the study of substitution
6. Opportunity cost is a term which describes (a) the initial cost of setting up a business
venture (b) cost of one product in terms of forgone production of others (c) the monetary
equivalent of the utility of production (d) cost related to an optimum level of production
7. The logical sequence of basic concepts in economics is (a) scarcity, choice, scale of
preference and opportunity cost (b) scarcity, wants, choice and scale of preference (c)
wants, choice, scarcity and opportunity cost (d) wants, scarcity, choice and opportunity
cost
8. Economics is called a social science because it is (a) branch of social studies (b) a study
of the way man devises to satisfy his unlimited wants from limited resources (c) a dismal
science in the Malthusian sense (d) governed by means of scientific methods of
observation
9. Scale of preference refers to____ (a) consumers preference for luxurious goods (b) the
household monthly income (c) list of goods and services in order of priority (d) budget
preparation without paying due regard to priority
10. The basic economic problems of the society include (a) what to produce, how and for
whom to produce (b) how to produce and sell (c) scarcity, when to produce and how (d)
scarcity, for whom to produce and where
11. The most frequently occurring value in a given data is_____ (a) mode (b) median (c)
mean (d) range
12. The formula (n+1)th is used to determine the (a) mean (b) median (c) mode (d) standard
deviation2
13. Which of the following is not a set of measure of Central Tendency? (a) mode and
median (b) mode, mean and median (c) mean and median (d) median and percentage
14. In economics, production is complete when (a) goods are produced in the factories (b)
goods are sold to the wholesalers (c) goods and services are produced by the government
(d) goods and services finally reach the consumers
15. Which of the following sets fully represents factors of production? (a) sunlight,
machinery, man, land (b) land, labor, capital, entrepreneur (c) capital, technology, idea,
market, land (d) land, water, weather, money
16. The term production in Economics means (a) the manufacturing of goods (b) the
creation of utilities (c) giving birth to children (d) the distribution of goods and services
17. Rent and interest are rewards to (a)labor and capital (b) land only (c) capital only (d) land
and capital only
18. The reward of entrepreneurship is (a) rent (b) wages (c) interest (d) profit
19. The reward of capital is (a) interest (b) rent (c) risk (d) premium
20. The ranking of a consumer’s needs in order of importance is termed (a) an opportunity
cost (b) economics of scale (c) a scale of preference (d) direct production
21. A collection of data which has not been processed is (a) disjoint data (b) raw data (c)
class intervals (d) frequency
22. Basic extractive activities are classified as (a) manufacturing production (b) tertiary
production (c) secondary production (d) primary production
23. The money payment made to owners of land and labor are (a) rent and wages (b) interest
and profit (c) wages and interest (d) dividend and salary
24. In Economics, the reward for labor is in the form of (a) salaries (b) profit (c) rent (d)
dividend
25. Data presented in tables are usually arranged in (a) charts and tables (b) rows and
columns (c) graphs and rows (d) maps and pie charts
26. Opportunity cost is defined as a (a) money cost (b) cost of production (c) real cost (d)
fixed cost
27. Land is often different from other factors of production because it (a) is a free gift of
nature (b) has different grades (c) is owned by individuals (d) is owned by government
28. Capital as a factor of production is important because (a) it enables us to carry out tasks
which cannot be done by human efforts only (b) it provides money which is essential for
the growth of business (c) without capital, all other factors are useless (d) most tasks can
be done with bare hands
29. The reward for land as a factor of production is (a) profit (b) rent (c) salaries (d) wages
30. Opportunity cost is a measure of the (a) forgone alternatives (b) money spent in the
purchase of a commodity (c) satisfaction derived from the purchase of a commodity (d)
value of commodity purchase
Theory Questions.
Section: B
Answer ONE question only from this section.
1. The table below shows the allocation of a country to selected sectors of the
economy in a particular year.
Sectors Amount(£)
Education 6250
Mining 2150
Agriculture 4300
Communication 2400
 Health2900
Present the above information contained in the table in a form of a pie chart.
2. The daily sales of a department store for one week are as follows:

Days Monday Tuesday Wednesday Thursday Friday Saturday

Sales(¥) 1750 1000 3500 2250 1000 2500
(a) Present the above data in a bar chart.
(b) Calculate the average daily sales for the week.

Section: C
Answer TWO questions only from this section.
3. (a) Define the following: (i) Class Intervals (ii) Mid point (iii) Arrays (iv) Frequency
distribution (v) Mean
(b)Calculate the mean of the following marks scored by students in an Economics
exam: 8, 32, 45, 38, 22, 28, 16, 51, 65, 48, 6, 24, 18, 12, 16, 48, 38, 50, 44, 6, 18,
16, 24, 32, 36, 26, 14, 20, 12, 18.
4. (a) Explain Economics as: (i) a science (ii) a social science
(b) List the factors of production and state their rewards.
5. (a) Define: (i) Economics according to Charles Robbins.
(ii) Production
(b)List four advantages of means.
(C)Explain any four factors that determine the volume of production.

Class: S S S 2 Subject:
Economics
Instruction: Answer all questions correctly from the section.
Section: A
1. The range of the data 14, 13, 15, 18, 20, 35 and 13 is (a) 20 (b) 22 (c) 13 (d) 18
2. The most frequently occurring value in a given data is (a) mode (b) median (c) mean (d) range
3. The formula (n+1) th is used to determine the (a) mean (b) median (c) mode (d) deviation
2
4. In most cases, the marginal utility derived from a particular goods (a) increases in additional
units are consumed (b) increase at decreasing rate as additional units are consumed (c)
decreases at a constant rate as additional units are consumed (d) decreases as additional units
are consumed
5. Utility of a commodity means (a) its usefulness (b) power to satisfy a want (c) its adaptability (d)
satisfaction derived from the production of a commodity
 6. A demand schedule is______ (a) a table containing the price of goods (b) a table showing the
relationship between price and quantity demanded of a commodity (c) a table showing the
consumer demand in order of importance (d) the market demand
7. If 12 men were employed in a building site and they molded an average of 150 blocks per
person, calculate the total output in a day. (a) 1200 (b) 1300 (c) 1400 (d) 1800
8. If the total cost of producing 200 units of commodities is ¥8,000. Determine the average cost.
(a) ¥14 (b) ¥20 (c) ¥40 (d) ¥50
9. Mean deviation is the_____ (a) absolute deviation from the mean (b) difference between the
maximum and minimum value in a set (c) reciprocal of the arithmetic mean (d) square root of
age mean
10. A medium of exchange which is generally acceptable is______ (a) barter (b) cheque (c)
government bond (d) money
11. The demand and supply functions of a commodity are given as follows: Qd = 20 – 2p
Qs = 6p – 12,

Where P = price in Naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium
price is_____ (a) ₦2 (b)₦4 (c) ₦6 (d) ₦20

12. The reward to land as a factor of production is_____ (a) profit (b) rent (c) interest (d) wage
13. The money payment made to owners of land and labor are_____ (a) rent and wages (b) interest
and profit (c) wages and interest (d) dividend and salary
14. The satisfaction derived from the use of a commodity is____ (a) demand (b) elasticity (c) wealth
(d) utility
15. Risk bearing and managerial control are the main functions of the_____ (a) managing director
(b) manager (c) entrepreneur (d) chief executive
16. The sum of items divided by the number of items is the____ (a) frequency (b) mean (c) median
(d) mode
17. The reward to capital as a factor of production is_____ (a) rent (b) wage (c) interest (d)
commission
18. The study of Economics enables individual to_____ (a) change jobs (b) evade taxes (c)
accumulate huge wealth (d) make rational decision
19. The satisfaction of a consumer derives from consuming additional unit of a commodity is
called____ (a) average utility (b) marginal utility (c) total utility (d) necessities
20. The money paid per hour or week for work done is known as_____ (a) cost (b) time rate (c)
bonus (d) wage rate
21. Price elasticity of demand is defined as the_____ (a) responsiveness of demand to changes
in price (b) responsiveness of price to changes in demand (c) increase in demand resulting
from a rise in price (d) unit decrease in price resulting from a fall in demand
22. Which of these factors does not cause a change in demand? (a) price of the commodity
concerned (b) taste and fashion (c) population (d) price of the commodities
23. The term production in Economics means____ (a) the manufacturing of goods (b) the
creation of utilities (c) giving birth to goods (d) the distribution of goods and services
24. The formula for calculating price elasticity of demand coefficient is______ (a) % change in
P(b)
i. % change in Qd
 b. absolute decline in P (c) % change in Qd (d) change in Qd
c. absolute increase in Qd % change in P decrease in P
25. Which of the following is NOT an advantage of price control? (a) control of inflation (b)
distortion of price mechanism (c) prevention of exploitation (d) control of producers profit
26. The law of diminishing marginal utility states that, the more a commodity is consumed
the_____ (a) higher the satisfaction derived from an additional unit (b) higher the price (c)
lower the quantity supplied (d) lower the rate of increase in the total utility derived
27. The difference between money cost and real cost is (a) real cost is the alternative forgone
while money cost is the actual amount paid for buying the item (b) real cost is the
opportunity cost while money cost is the marginal cost (c) money cost is the opportunity
cost while real cost is the actual cost in monetary terms (d) money cost is always greater
than real cost
28. Which of the following causes the demand curve to shift to the right? (a) a reduction in the
size of population (b) an increase in the income of the buyer (c) the availability of substitutes
(d) a decrease in price of the goods
29. Equilibrium price is the price at which quantity____ (a) demand is greater than quantity
supplied (b) supply is greater than quantity demanded (c) demand is equal to quantity
supplied (d) supply equal quantity produced
30. The mechanism which allows the price of a commodity to be fixed either above or below the
equilibrium is_____ (a) monopolistic competition (b) price discrimination (c) perfect
competitive market (d) price control

Theory
Section: B
Instruction: Answer only one question from these section.
1. (a) Define cross elasticity of demand.
(b)The table below shows the response of quantity demanded to changes in prices for
three pairs of commodities. Use the table to answer the question that follows:

Commodity Original NewPrice(£) Commodity Original New

Price(£) Quantity(kg) Quantity(kg)
Bread 15 20 Yam 150 200
Beef 25 40 Fish 1000 3000
Butter 100 50 Margarine 250 400

Calculate the cross elasticities of demand for: (i) bread and yam (ii) beef and fish(iii) butter and
margarine

2. The table below shows the various incomes and quantity demanded for different
commodities.

Commodities Income (₦) Quantity demanded (kg)

A 20,000 120
B 36,000 96
C 40,000 160
 D 44,000 200
E 45,000 240
F 47,000 252
(a) Calculate the following income elasticity between (i) A and B
(ii) C and D
(iii) E and F
(b) What kind of goods is between: (i) A and B (ii) C and D
Section: C
Answer two questions only from this section.
3. (a) Outline any five price control policy. (b) Write down any three effect of a
maximum price control policy. (c) What is price control?
4. (a) What is elasticity of supply?
(b) When is supply elastic? (c) Explain any four factors that influence elasticity of supply
5. With carefully labelled diagrams, illustrate each of the following:
a. perfectly inelastic demand (b) unity elastic demand (c) fairly elastic
demand (d) perfectly elastic demand(e) If at ₦16 per tuber, 40 tubers
were demanded and when the price fell to ₦12 per tuber, 60 tubers were
demanded. What is the price elasticity of demand?