Second Term Examination
Class : SSS 1
Subject : Economics
Name : ___________________________________
Section A : Objective Questions
Instruction : Read the question carefully and choose from the options lettered a – d, the one that is the correct answer.
1. The Capital that is needed for the day to day running of a business is called _____________. (a) Fixed capital (b) loan capital (c) Social capital (d) circulating capital
2. __________ are productive assets which are used to create further wealth. (a) Labour (b) mobile (c) immobile (d) capital
3. All these are the importance of capital except ___________. (a) it facilitates production (b) it improves efficiency on production (c) it plan and directs economic activities (d) it improves the standard of living
4. The process by which the stock of real capital of a country increases overtime is called ____________. (a) capital accumulation (b) capital evolution (c) capital derivation (d) capital consumption
5. Division of labour means ____________. (a) diving the labour into different categories (b) splitting the process of production into different (c) dividing the goods and services into different sections (d) Assuming different duties to labour
6. Division of labour is limited by the ____________. (a) availability of raw materials (b) size of the labor force (c) size of the firm (d) absolute size of country’s population
7. The concept of division of labour is usually associated with _________________. (a) David Ricardo (b) Adam Smith (c) Karl Marx (d) J. M. Keynes
8. The degree of special is implied by the ___________. (a) Availability of specialized skill and machinery (b) marginal cost exceeding marginal revenue (c) extend of the market (d) disadvantage of standardization
9. The following is not a reason for the existence of small firms. (a) scale of production is limited by size of market (b) expansion brings diminishing returns (c) large firms can cater for wide markets (d) small firms can provide personal services
10. If a company doubles all its input, and discovers that its output is more than doubles, we can say that the company is experiencing (a) increasing marginal utility (b) diseconomies of scale (c) increasing costs (d) decreasing costs
11. External economies are the advantage accruing to a firm as a result of (a) Its expansion. (b) the advantages accruing to one locality (c) Benefit derived by a firm as a result of its own individual policy (d) Bound to increase the costs of production whatever the circumstances.
12. A firm whose costs of production decreases but it continues to increase its output is said to be enjoying ____________. (a) profit maximization (b) large scale production (c) government subsidies (d) economies of scale
13. What is the most important factor influencing the location of the iron and steel industry at Ajaokuta? (a) availability of labour in the area (b) nearness to raw material (c) access to transport facilities (d) availability of power
14. Mono-product economies are those that __________. (a) have a rich cultural heritage (b) produces only raw materials (c) produces one main commodity (d) Specialize in agricultural industries
15. The concentration of industries in a particular area is known as ____________. (a) location of industries (b) localization of industry (c) industrialization (d) industrial congestion
16. Which of the following advantage of localization of industries may also be a disadvantage? (a) external economics (b) reduced costs of research (c) concentration of industries and of people (d) development of organized markets
17. It is advantageous to provide services which are natural monopoly through (a) Sole trader (b) partnership (c) limited liability company (d) public enterpirses
18. Which of the following is a public corporation? (a) Nigeria Breweries Limited (b) Nigeria Port Authority (c) Lagos Chamber of Commerce (d) Nigerian Bottling Company
19. The main purpose for establishing a public corporation is to _________________. (a) make profit (b) provide employment (c) provide essential services (d) compete with entrepreneur
20. The association of producers of similar goods, who have come together to promote the production, market and sales of their products is ______________. (a) Consumer co-operative society (b) Credit and Thrift society
21. In a limited liability company, the greatest risk is borne by _____________. (a) debentures holders (b) ordinary shareholders (c) company executives (d) preference shareholders
22. A firm is said to be a public joint stock company when it is (a) owned by the government (b) operate as a public corporation (c) sells shares to members of the public and publishes its accounts (d) operate in a non-Democratic fashion
23. Who controls a Limited Company? (a) the general manager (b) the managing director (c) the owner of 51% of the shares (d) the board of directors
24. In the event of a limited liability company goes into liquidation each ____________. (a) shareholder may loss the maximum of the amount he has invested (b) shareholder losses nothing (c) shareholder losses everything including his house (d) shareholder’s liability becomes unlimited
25. The most important advantage of co-operative societies is ___________________. (a) their high degree of democracy (b) the increase in the cost of marketing (c) their members are encouraged to save money (d) the possibility of raising loans for the members
26. The co-operative society that pool their resources together to enable them buy goods directly from the producers is called (a) Credit and Thrift Society (b) Wholesale Co-operative Society (c) Multi-purpose Co-operative Society (d) Consumer Co-operative Society
27. Each member of a Co-operative society has __________ vote. (a) two (b) one and half (c) one (d) three
28. A. Co-operative society is controlled and managed by _______. (a) a committee (b) a board of director (c) association members (d) membership
29. Which of these would increase the population of a country? (a) increase in death rate (b) decrease in birth rate (c) emigration (d) immigration
30. The country will be over-populated when _____________. (a) the birth is high (b) the death rate is low (c) the population is increasing more than the resources of the country
31.To calculate the annual natural growth rate of a country’s population, one has to know the country’s annual birth rate and ___________. (a) the size of that country (b) the rate of immigration into that country (c) the population Census of that country (a) the annual death rate
32. When the number of people is inadequate to effectively utilize and manage the available resources in a country is known as ____________________. (a) Over population (b) Under population (c) optimum population (d) growth population
33. The optimum population of a country is reached when ___________. (a) All factors of production have been fully employed (b) The productive effort per man is at its highest with a given volume of resources (c) the total population of a country increases (d) the natural resources of a country increases
34. Population density refers to __________. (a) densely populated urban centres (b) The total area divided by the total population (c) densely populated rural area (d) the total population divided by the total area
35. Changes in the distribution of the population with an increase in the number of older people is known as _____________. (a) declining population (b) under population (c) over population (d) optimum population
36. Which of the following is the standard concept for measuring and analysing population growth? (a) rate natural increase (b) the net migration rate (c) the rate of population increase (d) the fertility rate
37. The official head count of all the people of a given country is called ______________. (a) Population jure (b) Population factor (c) Population Census (d) Population counting
38. All these are importance of population Census except ______________. (a) for economic planning (b) provides information on unemployment and illiteracy level (c) Helps in policy formulations
39. All these are problems of population census except ___________. (a) High level of illiteracy (b) lack of manpower (c) poor transportation system (d) determine the population density
40. The population of a country can be grouped into : (a) sex, age, working, dependent (b) Female, adult, working or dependent (c) sex, working, female, male (d) female, male, adult, children
Section B : Theory
Instruction : Answer only four questions from this section.
1a. Define Capital
1b. Explain three features of Capital
2. Describe five classification of specialization
3a. What is Sole Proprietorship?
3b. Describe three characteristics of Sole Proprietorship
4. What are the possible solutions to rural – urban migration in West Africa?
5a. Define Population Census.
5b. Describe three characteristics of Population Census.
6. Outline four factors that determine the size of firms.