Economics Exam Questions for SS2 Third Term

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 SS2 Third 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 Facebook. (Like and Follow Page)

Introduction to Economics as a School Subject

Economics is a social science that studies how individuals, businesses, and governments make choices about the use of limited resources. As a school subject, it helps students understand basic concepts such as demand and supply, production, consumption, and distribution of goods and services.

Through Economics, students learn how money works in society, how prices are determined, and how various economic systems operate. It also prepares them to make informed decisions in real-life situations and understand national and global economic issues.

The subject is offered by students in Senior Secondary School as Economics.

Economics Exam Questions for SS2 Third Term

Economics Exam Questions for SS2 Third 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 follow specific instruction and answer the required number of questions.

Note that what you have below are SS2 Economics Third Term Exam Past Questions made available to assist students in their revision for 3rd term examinations and also teachers in structuring standard examinations.

SECTION A: Objectives

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

1. The cost incurred by using both fixed and variable factors in production is called
A. Marginal        B. fixed
C. total               D. average

2. If the quantity demanded of a particular commodity is represented by the function
Qd = 30 – 2p, what is the quantity demand at a price of TWELVE naira?
A. 6 units         B. 8 units
C. 10 units       D. 12 units

3. The responsiveness of demand to a change in income elasticity of demand is the measurement of
A. Foreign exchange
B. Gross elasticity
C. income elasticity of demand
D. price elasticity

4. Which of the following is not a Trade Union of Universities
A. Nigerian Economic Society
B. Academic Staff Union of Universities
C. Nigerian Economic Society
D. Nigerian Union of Journalist

5. The monopolist power can be controlled by the government through
A. Labour Union
B. Price Legislation
C. Import restrictions
D. Export promotion

6. Which of the following is not a condition for a perfect market?
A. Homogenous commodity
B. Ignorance of consumers
C. Perfect information
D. Free entry and exit

7. The situation in which there is a persistent fall in the general price level is referred to as
A. Devaluation       B. Depreciation
C. Deflation            D. Inflation

8. One disadvantage of inflation is that
A. Fixed income earners gain
B. Businessmen lose
C. Fixed income earners lose
D. Standard of living rises

9. Localization of industry refers to the
A. Concentration of firms of an industry in a particular area
B. siting of firms
C. even spread of industries
D. government policy of influencing

10. The costs which a firm will incur whether it is in production or not is referred to as
A. average cost
B. variable cost
C. opportunity cost
D. fixed cost

11. When elasticity is zero, the demand curve is
A. perfectly elastic
B. perfectly inelastic
C. concave
D. downward slopping

12. Net migration is the difference between
A. population and census
B. immigrants and emigrants
C. per capita income and population
D. internal and external migration

13. Wages are to some extent, determined by the
A. marginal utility of labour
B. average utility of labour
C. marginal productivity of labour
D. total output of labour

14. Average Variable Cost (AVC) curve
A. is U-shaped
B. Rises from left to right
C. slopes upwards
D. is horizontal to the x-axis

15. The income elasticity of a normal good is
A. positive        B. zero
C. negative       D. fixed

16. Which of the following is an item of government recurrent expenditure?
A. road construction
B. port facilities
C. wages and salaries
D. telecommunication projects

17. Inflation can best be checked by
A. allowing supply to remain constant
B. decreasing supply and increasing wages
C. increasing supply and holding wages constant
D. decreasing supply and wages

18. Unemployment that arises because of introduction of new machines and equipment in production is called
A. cyclical         B. structural
C. seasonal       D. technological

19. Personal savings are generally low in West Africa because of
A. the level of income of the people
B. the refusal of banks to grant loan
C. over population
D. cheaper foreign currencies

20. Which business organization enjoys tax-free profits in West Africa?
A. Co-operative societies
B. private companies
C. Joint stock company
D. partnership

21. The incidence of an increase in tax on a commodity with perfectly inelastic demand will be on the
A. wholesaler        B. retailer
C. government      D. consumers

22. Who among the following will benefit from inflation?
A. pensioners        B. savers
C. debtors             D. creditors

23. Budget surplus implies that
A. expenditure equals revenue
B. expenditure is less than revenue
C. expenditure is greater than taxation
D. direct tax is more than indirect tax

24. Money becomes a very poor store of value in a period of
A. deflation         B. depression
C. recession        D. inflation

25. A normal demand curves slopes
A. downward from left to right
B. upwards from left to right
C. downwards from right to left
D. upwards from the origin

26. When the total product is at its maximum, marginal product is
A. increasing        B. positive
C. negative           D. zero

27. The additional satisfaction derived from the consumption of one more unit of a good is called
A. marginal product
B. marginal utility
C. marginal revenue
D. marginal cost

28. Marginal cost can be derived from the
A. total product
B. total revenue
C. total cost
D. average fixed cost

29. The tax whose rate increases as the level of income increases is known as
A. regressive tax
B. proportional tax
C. progressive tax
D. company tax

30. Government of West African countries levy taxes to
A. prevent prices from failing
B. make people richer
C. limit the number of banks
D. finance government project

31. In a capitalist system, the means of production is owned and controlled by
A. private enterprise and the government
B. private individuals
C. the government only
D. worker and business

32. Mixed economy refers to a system in which the means of production are controlled by
A. the government
B. politicians
C. private individuals
D. the workers

33. When a change in price does not affect the quantity demanded of a commodity, the price elasticity of demand
A. fairly inelastic
B. infinitely elastic
C. perfectly inelastic
D. unitary elastic

34. Which of the following is an advantage of localization of industry?
A. development of subsidiary firms
B. creation of parallel markets
C. development of slums
D. attraction of foreign capital

35. The number of people who are qualified to work and who offer themselves for employment are called
A. migrant labour
B. working population
C. labour force
D. mobility of labour

36. To ensure high employment rates, developing countries should
A. build more universities
B. protect infant industries
C. organize trade fairs
D. prevent rural-urban drift

37. The act of selling goods in foreign markets at prices below those charged at home markets is called
A. exchange       B. specialization
C. dumping        D. exporting

38. The national income of a country can be estimated by the
A. cost-benefit method
B. distribution method
C. expenditure method
D. consumption method

39. Which of the following is excluded when estimating national income?
A. dividends
B. wages and salaries
C. transfer payment
D. profits

40. Government revenue from the groundnut industry is from
A. licenses        B. rents
C. royalties       D. taxes

41. If the government fixed a price of a commodity above the equilibrium price, the quantity supplied will be
A. less than quantity demanded
B. equal to the quantity demanded
C. greater than quantity demanded
D. equal to zero

42. In Economics, a market is defined as any
A. agreement made for consumes to buy all they need
B. agreement to sell commodities at low prices
C. arrangement made for producers to sell all their goods
D. arrangement whereby the buyers and sellers are in contact.

43. A condition for consumer utility maximization is where
A. MUX = PX
B. AUX = PX
C. MU = TU
D. TU + MU = 0

44. If a particular consumer derives total utility of 22 utils having consumed 4 units of a given product, his average utility will be
A. 88 utils          B. 18 utils
C. 5.5 utils         D. 3.5 utils

45. To ensure high employment rates, developing countries should
A. build more universities
B. protect infant industries
C. organize trade fairs
D. prevent rural-urban drift

46. The amount of satisfaction obtained from the consumption of a commodity at a particular time is called
A. marginal utility
B. diminishing utility
C. total utility
D. average utility

47. The mechanism which allows the price of a commodity to be fixed either above or below the equilibrium is known as
A. monopolistic competition
B. rice discrimination
C. perfect competitive market
D. rice control

48. For a monopolist, the Average Revenue (AR) curve is
A. above the total cost curve
B. the same as the marginal cost curve
C. above the marginal revenue curve
D. the same as that of the perfect competitor

49. If a monopolist is attempting to maximize profit, which of the following should be attempt to do?
A. equate average cost to average revenue
B. equate marginal cost to marginal revenue
C. fix price and output
D. equate price to cost

50. Which of the following is not a feature of a perfect market?
A. large number of buyers and sellers
B. homogeneity of products
C. preferential treatment
D. absence of transport cost

SECTION B: Essay

INSTRUCTION – Answer all five (5) questions in this section.

1a. Define Economic system.
b. Mention and explain the major types of Economic system.

2a. Define Unemployment.
b. Explain 5 causes of unemployment.

3a. Define Taxation.
b. Mention and explain 2 types of Taxation.

4a. Explain any 3 concepts of National income.
b. Discuss 3 methods or ways of measuring National income.

5. Explain demand for money.
b. Define Inflation and Deflation.
c. Write 3 types of Inflation.

Answers to Economics Exam Questions for SS2 Third Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Economics exam questions for SS2 Third 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 SS2 Third 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)

1a. Define Economic system.
An economic system is the means by which countries and governments distribute resources and trade goods and services. It includes the combination of various institutions, agencies, entities, decision-making processes, and consumption patterns that make up the economic structure of a society.

1b. Mention and explain the major types of Economic system.
i. Capitalist Economy: This is an economy where private individuals own and control the means of production. The market forces of demand and supply determine the prices of goods and services.
ii. Socialist Economy: In this system, the government controls and owns the means of production. The government plans and regulates economic activities.
iii. Mixed Economy: This combines both capitalist and socialist systems. Both the private sector and the government are involved in economic decision-making.
iv. Traditional Economy: This is based on customs, traditions, and beliefs. Production is mainly for subsistence, and economic roles are typically passed from one generation to the next.

2a. Define Unemployment.
Unemployment is the situation where people who are willing and able to work cannot find jobs.

2b. Explain 5 causes of unemployment.
i. Economic Recession: A decline in economic activities leads to reduced production and job cuts.
ii. Population Growth: When population grows faster than job creation, it leads to unemployment.
iii. Use of Capital-Intensive Techniques: Machines replace human labour, reducing the need for workers.
iv. Lack of Employable Skills: Many job seekers lack the necessary skills required by employers.
v. Seasonal Employment: Jobs that depend on seasons (like farming) can leave people jobless at certain times of the year.

3a. Define Taxation.
Taxation is the process by which the government imposes and collects financial charges from individuals and businesses to fund public services and projects.

3b. Mention and explain 2 types of Taxation.
i. Direct Tax: This is a tax paid directly by individuals or organizations to the government, such as income tax or company tax.
ii. Indirect Tax: This is a tax on goods and services. It is collected by sellers and passed on to the government, e.g., Value Added Tax (VAT).

4a. Explain any 3 concepts of National income.
i. Gross Domestic Product (GDP): This is the total monetary value of all goods and services produced within a country in a given period.
ii. Net National Product (NNP): This is the GDP minus depreciation of capital goods.
iii. Personal Income: This is the total income received by individuals and households from all sources, before tax deductions.

4b. Discuss 3 methods or ways of measuring National income.
i. Output Method: This involves summing the value of all goods and services produced in the economy.
ii. Income Method: This measures national income by adding all incomes earned by individuals and firms in the economy.
iii. Expenditure Method: This calculates national income by summing total spending on final goods and services in the economy.

5a. Explain demand for money.
Demand for money refers to the desire to hold money in cash or bank deposits for transactions, precautionary, or speculative purposes.

5b. Define Inflation and Deflation.
Inflation: This is the general and persistent rise in the prices of goods and services in an economy over time.
Deflation: This is the general decline in the prices of goods and services over a period of time.

5c. Write 3 types of Inflation.
i. Demand-Pull Inflation: Caused by excessive demand for goods and services.
ii. Cost-Push Inflation: Caused by an increase in the cost of production.
iii. Imported Inflation: Caused by an increase in the prices of imported goods and services.

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How to Pass Economics Exam Questions for SS2 Third Term

Passing your Economics exam questions for SS2 Third term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1. Study the Syllabus: Know all the topics you are expected to cover in third term and focus your reading accordingly.

2. Understand Key Concepts: Don’t just cram definitions. Try to understand economic concepts like demand and supply, national income, inflation, market structures, etc.

3. Practice Past Questions: Solve previous exam questions to know the kind of questions usually asked and how to answer them correctly.

4. Take Notes: Write short notes while studying. This will help you revise quickly before the exam.

5. Participate in Class: Always pay attention in class and ask questions when you don’t understand. This improves your grasp of the subject.

6. Join Study Groups: Studying with classmates helps you learn faster and remember better.

7. Improve Your Writing: Essay questions are common in Economics exams. Learn how to explain your points clearly and organize your answers well.

8. Manage Your Time: Don’t spend all your time on one question during the exam. Answer the ones you know first and come back to others later.

With these tips and God’s help, you can pass your SS2 Third Term Economics exam with flying colours!

It’s a wrap!

If you need more clarification on SS2 Third Term Questions on Economics, you can use the comments box below. We’ll be there to answer you asap.

Best wishes.