Economics Exam Questions for SS1 First Term with Answers

You’re welcome to our school exams series where we provide you with termly examination questions in different subjects. In today’s post, we will focus on Economics exam questions. We will cover Economics exam questions for SS1 First term with answers. This means that we’ll be providing you with answers to the questions at the end. Also, you will get a few success tips on how to pass Economics examinations with flying colors. Remember to use the comments sections if you have questions, and don’t forget to join our Free Online Tutorial Classes on YouTube. (Subscribe to the Channel)

Introduction to Economics as a School Subject

Before we venture into Past Economics Exam Questions for SS1 First term, here’s a brief introduction to the subject:

Economics is a social science that helps students understand how people, businesses, and governments make choices about the use of limited resources to satisfy human wants. It teaches learners about production, distribution, and consumption of goods and services, as well as concepts like demand, supply, money, and national income.

As a school subject, Economics develops students’ analytical and decision-making skills. It also prepares them to understand current economic issues such as inflation, unemployment, and budgeting—knowledge that is useful for personal life, business, and further studies in the social sciences.

Economics Exam Questions for SS1 First Term

Economics Exam Questions for SS1 First Term are divided into two sections:

• Section A
• Section B

The first section, namely, Section A is the objective test, and students are expected to attempt all questions in the section. Section B is the theory part, and students are expected to answer any ONE question from Part 1 and any TWO questions from Part 2. (Total of 3 essay/theory answers.)

Note that what you have below are SS1 Economics First Term Exam Past Questions made available to assist students in their revision for 1st term examinations and also teachers in structuring standard examinations.

SECTION A: Objectives (60 MARKS — 1 mark each)

Instruction: Answer all questions in this section by choosing from the options lettered A—D. Each question carries equal marks.

1. Economics is best described as the study of:
A. how to get rich quickly
B. human behaviour in the ordinary business of life
C. government finance only
D. laws of nature

2. Who is usually called the “father of economics”?
A. Lionel Robbins
B. Adam Smith
C. A. C. Pigou
D. Alfred Marshall

3. The study of Economics is primarily necessitated by:
A. production possibilities
B. scale of preference
C. scarcity of resources
D. abundance of resources

4. Choice is necessary because resources are:
A. available everywhere
B. unlimited
C. scarce and limited
D. constant

5. The reward for capital in production is usually called:
A. rent             B. interest
C. wages         D. profit

6. Which of the following is NOT an example of land?
A. river              B. mountain
C. machine        D. trees

7. Labour is best described as:
A. a factor of production provided by nature
B. human effort used in production
C. the same as capital
D. a free gift

8. The services of a musician are classified under which factor of production?
A. Primary
B. Secondary
C. Tertiary (service)
D. Intermediate

9. Applied Economics mainly deals with:
A. making laws from economic study
B. using economic laws to solve practical problems
C. the whole economy only
D. creating abstract theories only

10. Which of the following is a central problem of every economy?
A. where to produce
B. where to invest abroad only
C. how to tax people
D. how to steal resources

11. Opportunity cost is best defined as:
A. the monetary price of a good
B. the next best alternative forgone when a choice is made
C. fixed cost in production
D. social cost

12. The ranking of a consumer’s wants in order of importance is called:
A. choice
B. scale of preference
C. opportunity cost
D. economics of scale

13. The concept of opportunity cost can also be referred to as:
A. social cost
B. real cost
C. variable cost
D. sunk cost

14. Which of the following is NOT a scope of economics?
A. production      B. derivation
C. distribution     D. exchange

15. Data presented in tables are usually arranged in:
A. charts and graphs
B. graphs and rows
C. rows and columns
D. columns and graphs

16. Which of the following is NOT an advantage of tabular presentation of data?
A. enables easy location of figures
B. makes for easy comparison
C. occupies more space than a mathematical equation
D. shows whether figures are increasing or decreasing

17. The representation of data using proportional degrees and sectors is called:
A. pictograph
B. histogram
C. pie chart
D. bar chart

18. Which diagram is best for showing frequency distribution of continuous data?
A. pie chart
B. bar chart
C. histogram
D. pictograph

19. In statistics, the mode is:
A. the average of the two middle numbers
B. the observation with the highest frequency
C. the difference between extreme values
D. the number in the middle position of an ordered list

20. The median of the set {3, 5, 8, 9, 11} is:
A. 7           B. 8
C. 9           D. 5

21. Find the mean of the numbers: 8, 9, 6, 5, 10.
A. 5           B. 6
C. 8           D. 9

22. If N270 is the total spent on several items and one item is represented by 40° in a pie chart, how much was spent on that item?
A. N48         B. N70
C. N30         D. N32

23. If a table shows Rice 25, Beans 35, Garri 20, Flour 10, Yam 10 (total 100), what angle represents Beans in a pie chart?
A. 172°        B. 126°
C. 72°          D. 36°

24. Using the same table (Rice 25, Beans 35, Garri 20, Flour 10, Yam 10), what angle represents Flour?
A. 32°          B. 72°
C. 36°          D. 54°

25. If N2,700 is to be spent on those items (Rice 25, Beans 35, Garri 20, Flour 10, Yam 10), how much is allocated to Garri?
A. N450         B. N540
C. N180         D. N400

26. If flour receives N100 from the same total (as above), how much will rice receive?
A. N150          B. N250
C. N300          D. N540

27. Which of the following is a feature of land as a factor of production?
A. it is a free gift of nature
B. it produces by itself only when planted
C. it is always man-made
D. it is destructible only

28. One advantage of labour over other factors of production is that labour is:
A. scarce only
B. mobile (can move between jobs or locations)
C. rigid and unchanging
D. never destructible

29. A roadside gardener is classified as which kind of labour?
A. skilled
B. semi-skilled
C. unskilled
D. professional

30. Which of the following is an economic good?
A. bottled water
B. air (in open environment)
C. sunlight (free)
D. wind (natural and free)

31. Basic extractive activities (e.g., mining, fishing) are classified as:
A. manufacturing production
B. primary production
C. tertiary production
D. secondary production

32. Alfred Marshall gave his famous definition of economics in which approximate year?
A. 1932         B. 1890
C. 1843         D. 1776

33. Economics is best classified as a:
A. social science
B. pure science
C. political science
D. physical science

34. One similarity between Economics and Physics is that both use:
A. demand concepts
B. graphs and mathematical generalizations
C. choice theory only
D. law of diminishing returns only

35. The most noticeable characteristic of land is that it is:
A. a free gift of nature
B. always owned privately
C. always without mineral resources
D. only created by humans

36. Which of the following problems arises when there are more than one technically possible method of production?
A. where to produce
B. how to produce
C. when to produce
D. for whom to produce

37. If a student buys rice instead of beans, which principle is illustrated?
A. choice
B. opportunity cost
C. scale of preference
D. exchange

38. Which of the following measures is a measure of central tendency?
A. standard deviation
B. variance
C. mean
D. range

39. When data are arranged in ascending order, the middle value used to find the median is called the:
A. mode         B. mean
C. median       D. variance

40. Which presentation is best when you want to compare parts of a whole?
A. line graph
B. pie chart
C. scatter plot
D. frequency polygon

41. The cost of using natural resources that arises when one choice is made instead of another is called:
A. opportunity cost
B. explicit cost only
C. fixed cost only
D. sunk cost

42. The phrase “economics is the science that treats phenomena from the standpoint of price” is credited to:
A. Adam Smith
B. J. S. Mill
C. Davenport
D. A. C. Pigou

43. Which of the following best represents a tertiary activity?
A. farming
B. retail trade (selling goods)
C. mining
D. manufacturing

44. The process by which raw materials are converted into finished goods is called:
A. production
B. distribution
C. consumption
D. exchange

45. Production is completed when:
A. raw materials are converted into finished goods
B. goods reach the final consumer only
C. goods are stored in the warehouse only
D. goods are advertised only

46. Which of the following is NOT a characteristic of wants?
A. unlimited
B. recurrent
C. satiable (completely satisfied after one attempt)
D. varying in intensity

47. The advantage of presenting data in a bar chart is that it:
A. hides differences between categories
B. makes comparison between categories easy
C. reduces totals only
D. cannot show frequency

48. If a frequency distribution shows values 0,2,4,5,6,7,8 with frequencies 7,11,8,9,7,5,3 respectively, what is the modal class/value?
A. 7        B. 2
C. 6        D. 11

49. From the same distribution above, the median is most likely to be:
A. 2           B. 4
C. 5           D. 6

50. Which of the following best describes “scale of preference”?
A. ordering wants according to importance
B. a production schedule only
C. a method of taxation
D. government budget plan

51. Which of these is a secondary activity?
A. mining
B. manufacturing
C. retailing
D. banking

52. A histogram is most useful when presenting:
A. categorical data with names only
B. continuous numerical data grouped into classes
C. percentages of a whole only
D. single observations only

53. Which of the following helps economists make generalizations about human behaviour?
A. myths only
B. observations and data analysis
C. guessing only
D. astrology

54. The study of Economics makes an individual able to:
A. evade tax
B. change jobs frequently only
C. make rational economic decisions
D. accumulate huge wealth overnight

55. An item that occupies the middle position in an ordered list is called the:
A. mode          B. mean
C. median       D. variance

56. Which of the following would increase the angle of a sector in a pie chart?
A. increasing the total equally for all items
B. decreasing the percentage share of that item
C. increasing the percentage share of that item
D. keeping shares constant

57. If a distribution has values 1,2,3,4,5,6 with frequencies 4,8,11,3,2,2 respectively, the modal value is:
A. 1          B. 3
C. 11        D. 2

58. Which of the following best explains “economics of scale”?
A. cost advantages that arise from increased output
B. small-scale production only
C. personal tax reduction
D. a consumer’s budget constraint

59. What is the primary aim when economists draw production possibility frontiers (PPF)?
A. to show unemployment only
B. to illustrate trade-offs and opportunity cost between two goods
C. to set prices for goods
D. to show monetary policy

60. Which of the following statements about “economic goods” is correct?
A. They are always free.
B. They require scarce resources and command a price.
C. They are unlimited.
D. They never satisfy wants.

Read Also: Economics Exam Questions for SS1 Third Term

SECTION B: Essay

INSTRUCTION – Answer 3 questions as instructed

PART 1 — Answer ONLY ONE question from this part.

1. (a) Define Economics according to any three scholars (choose three different definitions).
(b) Give four reasons why we study Economics.
(c) Explain five basic economic problems every society faces.

2. The table below shows a frequency distribution:

X: 0 2 4 5 6 7 8
f: 7 11 8 9 7 5 3

(a) Using the table, calculate the mean of the distribution. Show your working.
(b) Find the median. Show your working.
(c) Find the mode. Show your working.

3. Use the table below (sectorial allocation of a country’s budget) and do the tasks that follow:

Sector — Amount (N Million)
Health — 40
Education — 209
Housing — 83
Manufacturing — 80
Agriculture — 138
Total — 550

(a) Draw a pie chart to represent the sectorial allocation. (Show calculations of angles for each sector and a neat labelled diagram.)
(b) Explain two limitations of using a pie chart to represent such data.

PART 2 — Answer any TWO questions from this part.

4. (a) What is labour?
(b) List and explain at least four characteristics of labour.
(c) Explain two ways in which a worker’s productivity can be improved.

5. (a) Define median in statistics.
(b) Give three advantages and two disadvantages of using the median as a measure of central tendency.
(c) Under what circumstance is the median preferred to the mean?

6. (a) Define opportunity cost.
(b) Using a clear example, explain how opportunity cost affects consumer choice.
(c) Explain two ways governments can reduce the negative effects of scarcity.

7. (a) List and explain any four basic concepts of Economics (for example, wants, resources, utility, choice — explain each).
(b) Distinguish between economic goods and free goods with examples.
(c) Explain briefly the difference between microeconomics and macroeconomics.

Remember to use the comments sections if you have questions, and don’t forget to join our Free Online Tutorial Classes on YouTube. (Subscribe to the Channel)

Answers to Economics Exam Questions for SS1 First Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Economics exam questions for SS1 First term. If you are using a mobile device, hold the table and scroll to the right or left for a complete view.

So here you have the answers to the objective section of Economics Exam Questions for SS1 First term. Use the comments section to let me know if you have any questions you would want me to clarify or discuss further.

Answers to Section B (Theory)

PART 1

1. (a) Definitions of Economics:

(i) According to Adam Smith, Economics is the study of the nature and causes of the wealth of nations.

(ii) Alfred Marshall defined Economics as a study of mankind in the ordinary business of life. It examines how man earns and uses his income.

(iii) Lionel Robbins defined Economics as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.

(b) Four reasons why we study Economics:

1. To understand how scarce resources are allocated to satisfy human wants.
2. To help individuals and nations make informed economic decisions.
3. To understand production, distribution, and consumption of goods and services.
4. To develop analytical and problem-solving skills useful in daily life and business.

(c) Five basic economic problems every society faces:

1. What to produce: Deciding which goods and services should be produced.
2. How to produce: Choosing the best method or technology of production.
3. For whom to produce: Determining who receives the goods and services.
4. How to allocate resources: Deciding how limited resources are distributed among competing uses.
5. How to achieve economic growth: Ensuring continuous improvement in production and living standards.

2. (a) Calculation of the mean:

Mean (𝑥̄) = Σ(fx) / Σf

Using the table:

X: 0, 2, 4, 5, 6, 7, 8
f: 7, 11, 8, 9, 7, 5, 3

fx = (0×7) + (2×11) + (4×8) + (5×9) + (6×7) + (7×5) + (8×3)
fx = 0 + 22 + 32 + 45 + 42 + 35 + 24 = 200

Σf = 7 + 11 + 8 + 9 + 7 + 5 + 3 = 50

Mean = 200 ÷ 50 = 4

(b) Finding the Median:

Total frequency (Σf) = 50
Median position = (n + 1) / 2 = (50 + 1) / 2 = 25.5th item

Cumulative frequency: 7, 18, 26, 35, 42, 47, 50

The 25.5th item lies within X = 4 and X = 5 classes.
Hence, Median = 4.

(c) Finding the Mode:

The highest frequency = 11 (corresponding to X = 2).
Therefore, Mode = 2.

3. (a) Calculation of angles for the pie chart:

Total = 550

Health = (40/550) × 360 = 26°
Education = (209/550) × 360 = 137°
Housing = (83/550) × 360 = 54°
Manufacturing = (80/550) × 360 = 52°
Agriculture = (138/550) × 360 = 90°

Diagram: Draw a circle and divide it into 5 sectors with the angles above. Label each sector according to the sectors and their angles.

(b) Two limitations of a pie chart:

1. It is not suitable for representing very large data sets or detailed comparisons.
2. Small differences between data values are difficult to show clearly on a pie chart.

PART 2

4. (a) Labour is the human effort (physical or mental) used in the production of goods and services.

(b) Characteristics of labour:

1. Human element: Labour is provided by human beings.
2. Inseparability: The labourer and his effort cannot be separated.
3. Labour is perishable: Labour not used today cannot be stored for future use.
4. Labour is mobile: Workers can move from one job or place to another.

(c) Two ways to improve productivity:

1. Providing training and education to workers.
2. Improving working conditions and motivation (e.g., better wages, incentives).

5. (a) The median is the middle value of an ordered set of data.

(b) Advantages of median:

1. It is simple to calculate and understand.
2. It is not affected by extreme values.
3. It can be used for ordinal data.

Disadvantages:

1. It does not use all data values.
2. It may not be accurate for large or grouped data without interpolation.

(c) The median is preferred to the mean when data contain extreme values or are skewed.

6. (a) Opportunity cost is the next best alternative forgone when a choice is made.

(b) Example: If a consumer has ₦500 and chooses to buy a book instead of food, the opportunity cost of the book is the food forgone.

(c) Two ways governments can reduce scarcity:

1. Encouraging production through investment and industrial development.
2. Importing essential goods to supplement local production.

7. (a) Four basic concepts of Economics:

1. Wants: Human desires that are unlimited and recurring.
2. Resources: The inputs (land, labour, capital, enterprise) used to produce goods and services.
3. Utility: The satisfaction derived from consuming a good or service.
4. Choice: The act of selecting one option among alternatives due to scarcity.

(b) Difference between economic goods and free goods:

Economic goods: They are scarce, have value, and command a price (e.g., food, clothes).
Free goods: They are abundant and free (e.g., air, sunlight).

(c) Difference between microeconomics and macroeconomics:

Microeconomics studies individual units like consumers, firms, and markets.
Macroeconomics studies the economy as a whole, dealing with national income, inflation, and unemployment.

How to Pass Economics Exam Questions for SS1 First Term

Passing your Economics exam questions for SS1 First term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1. Know the syllabus and exam format

1. Check topics set for the term. Focus on them first.
2. Know how many objective and essay questions will be asked.
3. Learn the command words: define, explain, illustrate, list, calculate.

2. Build strong foundations

• Learn clear definitions for key terms (economics, scarcity, wants, resources, opportunity cost).
• Memorise basic classification (factors of production, types of wants, sectors of the economy).
• Understand the difference between mean, median and mode and how to compute them.

3. Practice diagrams and calculations

Diagrams come often. Practice drawing:

• Pie chart (calculate angles from percentages).
• Simple bar chart and histogram.
• Label every axis and sector. Show working for calculations.

4. Study with past questions

1. Solve past objective and theory questions under timed conditions.
2. Mark your answers and learn from mistakes.
3. Repeat areas you get wrong until you improve.

5. Answering objective questions

• Read every option carefully before choosing.
• Eliminate clearly wrong answers first.
• If unsure, pick the best option based on definitions you memorised.

6. Writing good essay/theory answers

1. Plan — Jot a quick outline (introduction, main points, short conclusion).
2. Introduction — Give a clear definition or statement in one sentence.
3. Body — Use numbered or bullet points. Explain each point briefly. Give small examples where possible.
4. Conclusion — Summarise the main point in one sentence.
5. Use economic terms and stay on topic.

7. Time management in the exam

• Do objective questions first. They are faster and build confidence.
• Divide time for essay questions. Leave time to check your work.
• Show calculations clearly. Examiners award marks for correct method even if final answer is wrong.

8. Common exam mistakes to avoid

• Writing long irrelevant sentences. Be direct.
• Forgetting units (Naira, degrees, frequency) in calculations.
• Leaving diagrams unlabelled.
• Careless arithmetic — always re-check sums.

9. Revision routine

1. Make short notes for each topic. Use bullet points.
2. Use flashcards for definitions and formulas.
3. Practice a set of questions every day before the exam.

10. Exam day tips

• Get a good night’s sleep. Eat a light meal before the exam.
• Bring necessary tools: ruler, calculator (if allowed), pen and pencil.
• Read instructions on the question paper carefully before you start.

It’s a wrap!

If you need more clarification on SS1 First Term Questions on Economics, you can use the comments box below. We’ll be there to answer you asap. Don’t forget to join our Free Online Tutorial Classes on YouTube. (Subscribe to the Channel)

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