ECONOMICS EXAM
QUESTIONS FOR SS2
FIRST TERM
6 minutes read
FIRST TERM SS2 ECONOMICS
EXAMINATION QUESTIONS –
EDUDELIGHT.COM
FIRST TERM EXAM ECONOMICS
Examination malpractices may lead to a repeat of the subject or
suspensions don’t be involved.
SUBJECT: ECONOMICS DURATION: 2HR CLASS: SSS 2
1. Which of the following is an economic activity? A. Attending a
town’s meeting. B. A visits to the stadium. C. Payment of school
fees D. Arresting a petty thief
2. Which of the following cost curve is not u-shaped? The (a)marginal
cost curve (b)average fixed cost curve (c)average total cost curve
(d)average variable cost curve
3. Frictional unemployment occurs when (a) there is a change in the
techniques of production (b)job seekers lack information where
job exists (c)bad weather prevents workers from progressing
(d)job seekers have disabilities
4. Which of the following will increase the demand for labour?
(a)increase wage rate (b)labour demand for output (c)low wage
rate (d) low marginal productivity
5. Production of firms and Industries is not influenced
by(a)availability of raw materials (b)existence of other firms
(c)nearness to the source of money supply (d)government policy
6. The profit of a producer is the difference between (a)total cost and
marginal cost (b)total revenue and total cost (c)average cost and
total cost (d)price and total cost
7. Cyclical unemployment is the one associated with (a)inadequate
information (b)trade fluctuations (c)structural changes (d)seasonal
changes
8. Perfect knowledge of events in a perfect market will be made
possible by the existence of (a)many buyers and sellers (b)
homogeneous products (c)means of communication (d) large
member of traders
9. Which of the following measures will not encourage
industrialization in West Africa ?(a)taking over of all forms of
industries by the government (b)provision of social infrastructure
(c)giving tax incentives especially to infant industries (d)using tariffs
to discourage the use of imported items
10. In economics, a market is defined as any (a)agreement made for
consumers to buy all they need (b)agreement to sell commodity at
low prices (c)arrangement made for producers to sell alltheir
goods (d)arrangement whereby buyers and sellers are in close
contact
11. The following constitutes the criteria for identifying an economic
system except(a)ownership of resources (b)scarcity of resources
(c)method of decision making (d)motivation for production
12. The movement of labour from one grade to an entirely different
grade is an example of (a)industrial labour mobility (b)horizontal
occupational mobility (c) vertical occupational mobility
(d)geographical mobility
13. Which of the following is not a strong basis for trade union
demand for higher wages? The (a)company is making higher profit
(b)productivity of the worker has increased (c) members of the
union have high qualification (d)commodity produced by the
worker is very essential
14. An industry is best described as (a)firms that sells a set of closely
related commodities (b)a factory that produces different lines of
products(c)a group of firms that sell a closely related set of
products (d)industrial concern that is into production and selling
goods
15. Which of the following statement is correct?(a)as total utility
increases the marginal utility also increases (b)the marginal utility
is always zero whenever the total utility reaches the maximum
(c)the total utility is at maximum whenever the marginal utility is at
its minimum(d)there is no relationship between total utility and
the marginal utility
16. Points outside a production possibility curve indicate (a)
unattainable production levels (b) attainable production levels (c)
inefficient but attainable production levels (d) optimum
production levels (a) natural monopoly (b) state monopoly (c)
legal monopoly (d) discriminating monopoly
17. One of the problems facing industrial development in West African
countries is (a) inadequate large market (b) inadequate
infrastructure (c) inadequate supply of labour (d) unavailability of
natural resources
18. The allocation of goods and services in a free market economy is
performed by (a) the price system (b) the banking system (c) the
central planning body (d) government
19. If a firms price is less than average cost but more than average
variable cost, the firm is covering (a) all of its fixed cost and
variable cost (b) all of its fixed cost and part of variable cost (c) all
of its variable cost and part of fixed cost (d) part of its fixed cost
and part of variable cost
20. The type of monopoly that develops as a result of granting patent
right is known as When the marginal product is negative, the total
product will be (a) Constant (b) at a maximum (c) increasing (d)
decreasing
21. A market structure where profit is maximized when marginal
revenue, marginal cost and price are equal is known as (a) perfect
competition (b) monopoly (c) Oligopoly (d) imperfect competition
22. In which of the following markets does a firm have power to make
super normal profits both in the short run and long run? (a)
monopoly (b) duopoly (c) oligopoly (d) monopoly
23. The component of three sector economy are (a)banks, schools and
hospital (b)workers, producers and marketers (c)households,
firms and the government (d)producers, retailers and
wholesalers In the long-run factors of production are considered to
be (a)at maximum (b)fixed (c)variable (d) increasing
24. Which of the following is the main outcome of a trade union’s
interference with the wage rate? Wages are (a) lowered but
employment level remains unchanged (b) lowered but more
employment opportunities are created (c) increased and
employment levels are unchanged (d) increased but employment
levels are reduced
25. Which of the following statement is not a feature of a monopoly
(a) seller is allowed to fix his own price (b) buyers and sellers are
price takers (c) new entrances are restricted (d) there is only one
seller of the commodity.
26. The movement of labour from one grade to an entirely different
grade is an example of (a)industrial labour mobility (b)horizontal
occupational mobility (c) vertical occupational mobility
(d)geographical mobility
27. Which of the following is not a strong basis for trade union
demand for higher wages? The (a)company is making higher profit
(b)productivity of the worker has increased (c) members of the
union have high qualification (d)commodity produced by the
worker is very essential
28. Which of the following statement is correct?(a)as total utility
increases the marginal utility also increases (b)the marginal utility
is always zero whenever the total utility reaches the maximum
(c)the total utility is at maximum whenever the marginal utility is at
its minimum(d)there is no relationship between total utility and
the marginal utility
29. Productive resources can also be called (a) principle of
production (b) factors of production (c) items of production
(d) labour and material resources.
30. Production covers all the following except when (a) utility is
created (b) a good is manufactured (c) a commodity is
consumed (d) individual want
FIRST TERM SS2 ECONOMICS EXAMINATION QUESTIONS –
EDUDELIGHT.COM
THEORY: Answer one question only from this section
1. The table below shows the various possible combinations of
military and civilian goods produced by a country, using the
available resources and technology. Use the table to answer the
questions the questions that follow.
Military Goods (in tones) Civilian Goods (in tones)
0 200
20 160
40 120
60 80
80 40
100 0
(a) Draw the production possibility curve (PPC)
(b) Indicate points S and K at which production is not feasible
(c) Indicate points M and N at which resources are not efficiently
utilized
(d) What does the downward slope of the PPC indicate?
(e) Why is production not feasible at points S and K?
2.
Total Marginal Total
Quantity of Marginal
Revenue Revenue (MR) Cost
yams (Kg) Cost (MC) N
(TR) N N (TC) N
O 0 – 5 _
1 9 9 8 3
2 18 9 16 T
3 24 6 21 5
4 28 Q 25 4
5 30 2 25 U
6 P 1 25 0
7 28 -3 S 1
8 24 R 24 -2
Use the table above to answer the following questions (a) complete the
table by calculating the missing figures P,Q,R,S,T,U (b) At what output is
profit maximized ? (c) calculate the profit when quantity sold is 5 (d) At
what output does MC begin to rise ?
Answer two from this section
3. Define market. (b) Explain four characteristics of a
perfect market
(c) Explain 4 advantages and 3 disadvantages of monopoly
(d) With the aid of a diagram, explain the super normal profit of a
monopolist
4a. Define unemployment (b) State and explain five types of
unemployment
(c) (i) Define wages (ii) Discuss five factors responsible for variation in
wages
5a. Define (i) Labour market (ii Demand for labour
(b) Explain 4 factors affecting the demand for labour
(c) Discuss 4 factors affecting the efficiency of labour
(d) Explain the term mobility of labour
6a. What is capitalism? (b) State and explain 5 main features of
capitalism?
(c) Explain 4 advantages and 4 disadvantages of a socialist economic
system
(d) State and explain four advantages and two disadvantages of the
mixed economic system
(e) Explain any three weapons that can be used by a trade union
during a trade dispute
FIRST TERM SS2 ECONOMICS EXAMINATION QUESTIONS –
EDUDELIGHT.COM
Read Also
PHE EXAM BASIC SCIENCE
QUESTIONS FOR EXAM
JSS2 SECOND QUESTIONS FOR
TERM JSS3 SECOND
TERM
FIRST TERM EXAM ECONOMICS
