Economics Exam Questions for SS1 Second Term with Answers

1. Determine the arithmetic mean
A. 2.0              B. 2.3
C. 2.4              D. 2.5

2. A basic economic problem of any society is
A. higher level of illiteracy
B. irregular power supply
C. population growth
D. Scarce resources

3. Which of the following is related resource allocation in an economy
A. how to produce
B. what to produce
C. for whom to produce
D. efficient use of inputs

4. Households make economic decision because they want to
A. make more profit
B. increase their salaries and wages
C. increase their purchases
D. maximize their satisfaction.

5. Livestock production in Africa is hindered mainly by
A. inadequate demand
B. use of traditional implements
C. land tenure system
D. pests and diseases

6. The components of a three sector economy are;
A. banks, schools and hospitals
B. workers, producers and marketers
C. Households, firms and Government
D. producers retailers and wholesalers.

7. Which of the following agencies help to stables farmers income
A. local Government authorities
B. trade unions
C. marketing boards
D. co-operative organizations.

8. Examples of joint stock banks are
A. commercial banks
B. co-operative credit societies
C. central bank
D. development bank

Use the table below to answer questions 9 and 10

9. From the table, the mean of the distribution is
A. 2.2             B. 2.5
C. 3.2             D. 4.5

10. What is the median of the distribution
A. 5               B. 4
C. 3               D. 2

11. Co-operative societies formed to market the output of the members are called
A. consumer’s Co-operative society
B. wholesales Co-operative societies
C. credit and thrift co-operative societies
D. producers co-operative societies

12. Money will serve as a standard for deferred payment if it is
A. homogeneous
B. durable
C. easily recognized
D. stable in value

13. Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450 units. What is the percentage charge in quantity supplied?
A. 1 %              B. 7.5 %
C. 12.5 %         D. 20 %

14. Precautionary motive for holding money is to
A. meet daily and regular transactions
B. Take advantage of changes in the prices of goods and services
C. cover unforeseen events
D. cover expenses on house rent

15. The concentration of many firms of a particular industry in a particular area is known as
A. location of industry
B. amalgamation of industries
C. location of industries
D. nationalization of industry

16. The difference between the birth rate and the death rate in a country is known as the
A. natural growth rate
B. net migration
C. marginal growth
D. average growth rate

17. Measures of central tendency refers to
A. deviation            B. midpoint
C. average              D. mass

18. The population size which harnesses available economic resources to yield maximum average output is known as
A. under population
B. overpopulation
C. optimum population
D. population growth

19. Census is the
A. population growth
B. head counting of population
C. people’s head
D. development plan

20. Government can improve agricultural products through
A. Building houses
B. constructing roads
C. provision of credit facilities to the farmers
D. land tenure

21. The movement of people from one country to another is called
A. Emigration
B. Migration
C. Net emigration
D. urban migration

22. Land is different from other factors of production because it is
A. mobile
B. movable
C. free gifts of nature
D. earth

23. The services of Doctors for the general hospital rendered to patient is
A. direct service
B. indirect service
C. government service
D. good service

24. The demographic transition theory explains stages of modern population history
A. 2              B. 3
C. 5              D. 7

25. The minimum number of shareholders required to form a joint stock company is
A. 5               B. 7
C. 9               D. 2

26. The grouping of population according to the economic activities people engage in is
A. age distribution
B. sex distribution
C. geographical distribution
D. occupational distribution

27. The detail of the internal affairs of a joint stock company are contained in the company’s
A. code of conduct
B. articles of association
C. certificates of incorporation
D. trade certificates

28. Which of the following is not a commodity money?
A. cowries          B. salt
C. beads             D. coins

29. Localization of firms means
A. combination of firms
B. location of industries a street
C. sitting an industry in an area
D. many industries

30. The following are components of agriculture except
A. crop production
B. fish farming
C. forestry
D. mining

31. In partnership a nominal partner
A. bears the unlimited liability in case of failure
B. does not make financial contribution to the partnership
C. makes financial contribution and participates in management
D. carry the whole responsibility

32. Goods and services that can satisfy one’s immediate needs are referred to as ________ goods
A. capital               B. consumer
C. indigenous        D. industrial

33. Which of the following is the best form of business organization.
A. co-operative society
B. joint stock company
C. partnership
D. sole proprietorship

34. Which of the following age group(s) is / are regarded as dependents in the age distribution below?
i. 0-10 years
ii. 11-17 years
iii. 18-60 years
iv. 61 and above

A. i only
B. iii only
C. i, ii and iv only
D. i and iv only

35. a business formation with a minimum of two and maximum of twenty persons is called
A. co-operative society
B. Joint stock company
C. one man business
D. partnership

36. Which of the following will not bring about increase in labour force?
A. better medical services
B. decrease in death rate
C. emigration
D. Immigration

37. The formula (N+1)th / 2 is used to determine the
A. mean           B. median
C. mode           D. standard deviation

38. A product has utility if it
A. is useful
B. satisfies consumers wants
C. takes more resources
D. supply and demand

39. Economics is the study of human behaviour as it relates to the
A. efficient allocation of resources
B. operation of companies
C. production of goods
D. generation income

40. The ultimate aim of agricultural policies in Nigeria is to achieve
A. food sufficiency
B. full employment
C. industrialization
D. industrial capacity utilization

41. The middle men in the chain of distribution are
A. the consumers and wholesalers
B. the producers and retailers
C. the retailers and consumers
D. the wholesalers and retailers

42. The reward of entrepreneurship is
A. interest           B. profit
C. rent                 D. salary

43. The practice of division of labour can be restricted by
A. improved system of exchange
B. research and innovation
C. the employment of specialization
D. the greater use of Machinery

44. Scarcity is the principal problem faced by
A. the poor people in developing countries
B. societies who face the problems of unemployment
C. every individual, firm and Government
D. the poor people in the world

45. Means are scarce because
A. they are abundant in supply
B. they are unlimited in supply
C. they have alternative uses
D. wants are limited

46. Entrepreneurship as a factor of production is scarce because
A. not everyone has the time
B. it is difficult to obtain the qualification
C. a lot of people avoid taking risks
D. labour is also scarce

47. A Schoolboy bought a textbook and went home without a cell phone he would have liked to buy. This is a typical case of
A. wrong choice
B. inadequate money cost
C. luxurious lifestyle
D. opportunity cost

48. A product that can be used as money which is valuable in its own right is called
A. bank money
B. precious money
C. token money
D. commodity money

49. A farmer’s capacity to produce on a large scale in West Africa is limited by
A. absence of buyers
B. inadequate storage
C. development of substitutes
D. absence of industries to patronize them

50. Peasant farming is the
A. cultivation of small holdings
B. use of labour intensive method of agriculture
C. production of food crops
D. production to meet family food requirement

PART 2: THEORY

SECTION A: Data Response

Answer All Questions

1. The demand function for a commodity is given as Qd = 21 – 3p
a) Use the demand function to complete the table below.

b) Draw the demand curve for the completed schedule in 1 (a)
c) Outline any three factors affecting demand and supply

2. The following are the loans granted by commercial banks to different categories of individuals. Use the information to answer the questions that follow.
Bakers $8,000, Farmers $8000, Miners $7000, Retailers $5,000, Tailors $4,000, Teachers $6,000, Drivers $4000, Fishermen $3,000.
(a) Arrange the information in the form of a table. Grouping the individuals into (i) Primary sector (ii) Secondary sector (iii) Tertiary sector
(b) Express the loan of each sector as a ratio of the total loans granted.
(c) prevent the total loans granted to the sectors in a simple bar chart.

3. The following table represents the scholarship awards made by some philanthropist over the years.

(a) Draw the pie chart to represent the scholarship given for 6yrs
(b) What are the three importance of pie chart
(C) What is a graph
(d) List three types of Bar chart
(e) What are the three definitions of economics

SECTION B

4. (a) What are quoted and unquoted companies.
(b) What are the characteristics of private limited liability company.
(c) What are the contents of deed of partnership organization.
(d) What are the features of capitalist economy.
(e) How is a company formed.

5. (a) What is limited liability?
(b) What are the determinants of population. Explain them?
(c) what is Division of labour.
(d) Explain the factors that limit Division of labour and specialization.
(e) What is market demand schedule?

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Answers to Economics Exam Questions for SS1 Second Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Economics exam questions for SS1 Second 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 Second 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 Part 2 (Theory)

SECTION A: DATA RESPONSE

1.

(a) Use the demand function Qd = 21 – 3p to complete the table below.

(b) Demand Curve for the Schedule

To draw the demand curve:

• Draw the vertical axis as Price (P).
• Draw the horizontal axis as Quantity Demanded (Qd).
• Plot the following points:
  (21,0), (18,1), (15,2), (12,3), (9,4), (6,5), and (3,6).
• Join the points with a smooth curve sloping downward from left to right.

The curve slopes downward because as price increases, quantity demanded decreases.

(c) Three Factors Affecting Demand and Supply

Factors Affecting Demand

1. Income of consumers: When income increases, demand for goods also increases.
2. Price of related goods: The demand for a product may change because of changes in the prices of substitute or complementary goods.
3. Taste and fashion: Goods that become fashionable usually experience higher demand.

Factors Affecting Supply

1. Cost of production: High production costs reduce supply.
2. Technology: Improved technology increases production and supply.
3. Government policy: Taxation may reduce supply while subsidies may increase supply.

2.

(a) Classification of Loans According to Sectors

(b) Ratio of Loans Granted

• Primary Sector = 18,000 : 45,000 = 2 : 5
• Secondary Sector = 12,000 : 45,000 = 4 : 15
• Tertiary Sector = 15,000 : 45,000 = 1 : 3

(c) Simple Bar Chart Representation

Draw three vertical bars representing:

• Primary Sector = 18,000
• Secondary Sector = 12,000
• Tertiary Sector = 15,000

The vertical axis should represent loan amounts, while the horizontal axis should represent the sectors.

3.

(a) Pie Chart Representation

Total scholarship awards = 100 + 215 + 185 + 125 + 165 + 210 = 1000

Angle for each year = (Value ÷ Total) × 360°

Use the angles above to draw the pie chart.

(b) Three Importance of Pie Chart

1. It makes data easy to understand.
2. It helps in comparing parts of a whole.
3. It presents information in a simple visual form.

(c) Meaning of Graph

A graph is a diagrammatic representation of statistical data used to show relationships between variables.

(d) Three Types of Bar Chart

1. Simple bar chart
2. Multiple bar chart
3. Component bar chart

(e) Three Definitions of Economics

1. Economics is the study of how man allocates scarce resources to satisfy unlimited wants.
2. Economics is the study of wealth and its production, distribution, and consumption.
3. Economics is the study of human behaviour in relation to scarce means with alternative uses.

SECTION B

4.

(a) Quoted and Unquoted Companies

Quoted companies are companies whose shares are listed and traded on the stock exchange market.

Unquoted companies are companies whose shares are not listed on the stock exchange.

(b) Characteristics of Private Limited Liability Company

1. It has a separate legal entity.
2. The liability of members is limited.
3. Shares are not offered to the general public.
4. The number of members is limited.
5. It has perpetual succession.

(c) Contents of Deed of Partnership

1. Name of the business
2. Capital contribution of partners
3. Profit and loss sharing ratio
4. Duties of partners
5. Method of dissolution

(d) Features of Capitalist Economy

1. Private ownership of property
2. Freedom of enterprise
3. Profit motive
4. Competition among firms
5. Price system determines allocation of resources

(e) Formation of a Company

1. Preparation of memorandum of association
2. Preparation of articles of association
3. Registration with the Corporate Affairs Commission
4. Issuance of certificate of incorporation
5. Commencement of business activities

5.

(a) Meaning of Limited Liability

Limited liability means that the liability of shareholders is limited to the amount they invested in the business.

(b) Determinants of Population

1. Birth Rate: High birth rate increases population.
2. Death Rate: High death rate reduces population.
3. Migration: Immigration increases population while emigration reduces it.

(c) Meaning of Division of Labour

Division of labour is the breaking down of production processes into different tasks performed by different workers.

(d) Factors Limiting Division of Labour and Specialization

1. Small size of the market
2. Lack of capital
3. Poor transportation and communication
4. Low level of technology
5. Inadequate skilled labour

(e) Meaning of Market Demand Schedule

Market demand schedule is a table showing the quantities of a commodity demanded by all consumers at different prices over a given period of time.

How to Pass Economics Exam Questions for SS1 Second Term

Economics is one of the most interesting subjects in Senior Secondary School when properly understood.
Many students fail Economics not because the subject is difficult, but because they do not study it the right way.
To pass your SS1 Second Term Economics examination successfully, you need proper preparation, understanding of key concepts, and regular practice.

1. Understand the Key Topics

Do not cram definitions alone. Make sure you understand the meaning and explanation of each topic taught in class.
Important SS1 Second Term topics usually include:

• Demand and Supply
• Market Demand Schedule
• Population
• Division of Labour and Specialization
• Business Organizations
• Commercial Banks
• Agriculture
• Statistics and Graphs
• Money
• Economic Systems

Study each topic carefully and learn the important points, advantages, disadvantages, and definitions.

2. Learn Definitions Correctly

Economics contains many definitions. Your teacher and examiner expect you to define terms properly.
Always learn standard definitions for concepts like:

• Economics
• Demand
• Supply
• Population
• Division of Labour
• Limited Liability
• Market
• Opportunity Cost

Write the definitions repeatedly until you can explain them confidently in your own words.

3. Practice Calculations and Graphs

SS1 Economics usually involves calculations and graphical illustrations.
You should practice:

• Demand and supply schedules
• Mean, median, and mode
• Pie charts and bar charts
• Ratios and percentages
• Demand and supply curves

When drawing graphs, always label your axes properly and use a ruler for neatness.

4. Study Past Questions

One of the fastest ways to prepare for Economics exams is by solving past questions.
Past questions help you understand:

• The pattern of examination questions
• Frequently repeated topics
• How answers should be written
• How to manage time during exams

Practice both objective and theory questions regularly.

5. Use Simple Notes

Avoid reading too many complicated materials at once.
Prepare short notes containing:

• Definitions
• Main points
• Examples
• Important formulas
• Differences between concepts

Simple notes make revision faster and easier before examination.

6. Attend Classes and Ask Questions

Pay attention during Economics lessons in school.
If you do not understand a topic, ask your teacher or classmates questions immediately.
Topics like graphs, statistics, and calculations become easier when properly explained.

7. Improve Your Presentation

Good presentation can improve your performance in theory questions.
During the examination:

• Write neatly
• Number your answers correctly
• Underline key points where necessary
• Answer according to the question asked
• Use examples to support explanations

8. Manage Your Time Properly

Do not spend too much time on one question.
Answer the easiest questions first and return to difficult ones later.
Leave enough time to cross-check your work before submission.

It’s a wrap!

If you need more clarification on SS1 Second 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)

Best wishes…