First Term Examination
Class : SSS 2
Subject : Economics
Time : 2 Hours
Section A : Objective Questions
Instruction : Read the questions carefully and pick from the options lettered a – d.
1. Arithmetic mean is also known as ___________. (a) Median (b) Range (c) Sum (d) Mean
2. The most frequently occurring number in a set of data is known as _____________. (a) Mode (b) Mean (c) Median (d) Range
3. A set of values with two modes is called __________. (a) Modal (b) Bi-modal (c) Multi-modal (d) Mixed – modal
4. Median is defined as __________. (a) Values (b) Mean (c) Frequency (d) Average
5. The formula for finding the median of a given set of values is __________________. (a) Median = (n+1)/2 (b) Median = (1+n)/3 (c) Median = (n+2)/1 (d) Median = (n+2)/2
6. _________ is the Average of two middle numbers. (a) Mode (b) Median (c) Mean (d) Range
7. The difference between the highest and the lowest value is _______________. (a) Mean (b) Median (c) Range (d) Mode
8. Standard deviation is the square root of the ___________. (a) Median (b) Range (c) Variance (d) Quartile
9. __________ are a value which divides a given distribution into four equal parts. (a) Range (b) Variance (c) Quartile (d) Median
10. Find the range of the following data: 24, 16, 10, 5. (a) 10 (b) 18 (c) 15 (d) 19
11. The law of diminishing marginal utility has been criticized on ____________ basis. (a) Consumption (b) Diminishing. (c) Assumption (d) Utility
12. The total amount of satisfaction derived is referred to as _________ utility. (a) Average (b) Total (c) Marginal (d) Time
13. Demand is ___________ if a larger change in price leads to a small change in quantity of goods demanded. (a) Elastic (b) Inelastic (c) Unitary (d) Perfect elastic
14. A situation of balance between quantity demanded and supply is _________. (a) Elasticity (b) Equilibrium (c) Balance (d) Quantity
15. Additional satisfaction derived by consuming extra unit of a commodity is ___________ utility. (a) Marginal (b) Total (c) Cost (d) Average
16. __________, is the satisfaction that a consumer derives from consuming a commodity. (a) Production (b) Division of labour (c) Specialization (d) Utility
17. All are measure of dispersion except ____________. (a) Standard deviation (b) Mean. (c) Variance (d) Range
18. All are determinants price elasticity of demand except ___________. (a) Price (b) Cost of production (c) Consumer income (d) Habits
19. Elasticity of demand can be measured using _____________. (a) Coefficient of quantity demanded (b) Coefficient time (c) Supply coefficient (d) Coefficient of price of elasticity demand.
20. When there is an increase in demand, the demand curves shifts to ____________. (a) Right (b) Left (c) Centre (d) Middle
21. Factors affecting demand are all except __________. (a) Price (b) Taxation (c) Fashion (d) Cost of Production
22. When two or more commodities are produced and supplied from one source, it is ___________ supply. (a) Composite (b) Joint (c) Competitive (d) Derived
23. ___________ is the law of demand. (a) The lower the price, the higher the quantity demanded (b) The higher the price, the lower the quantity demanded (c) The lower the price, the lower the quantity (d) The higher the demand
24. The difference between the amount a consumer budgeted to pay for a commodity and the actual amount he paid to have the commodity is __________. (a) Consumer surplus (b) Consumer deficit (c) Diminishing return (d) Utility maximization
25. ___________ is the curve which shows the possible combination of two commodities, each yielding the same satisfaction. (a) Demand curve (b) Supply curve (c) Indifference curve (d) Elasticity curve
26. _________ is the quantity of commodity produces are able and willing to offer for sale. (a) Supply (b) Demand (c) Utility (d) Surplus
27. ___________ creates artificial scarcity. (a) Hoarding (b) Rationing (c) Black market (d) Government
28. __________ is a market situation where trading transactions and allocation of resources are being carried on outside the conventional norm. (a) Trading market (b) People’s market (c) Evening market (d) Black market
29. All are effects of rationing except ____________. (a) it denies some people access to essential commodities (b) it involves struggle and uncertainty (c) it increases standard of living of people (d) Insufficient rationing affects people standard of living.
30. Rationing may lead to increase in __________ for other goods. (a) Supply. (b) Demand (c) Consumption (d) Production
31. In Nigeria, price control was carried out by the _____________________________. (a) S. O. N (b) N. A. F (c) Price control board (d) N. A. F. D. A. C
32. Price control legislation is also known as ___________. (a) Price board (b) Price agency (c) Price fixation (d) Price control policy
33. _______ refers to how the government fixes the price of essential commodities. (a) Price stocking (b) Price management (c) Price legislation (d) Price tag
34. If elasticity is equal to one, elasticity of demand is __________. (a) zero (b) unity (c) Elastic (d) Less than one
35. Cross elasticity of demand = % change in the quantity of goods A Over % change in price of goods B. (a) True (b) False (c) Partly true (d) Not sure
36. If the demand for a commodity increases while supply remains constant, there will be excess __________________. (a) Demand (b) Supply (c) Production (d) Quantity
37. The coefficient of an income elasticity of demand is ___________. (a) Less than 1 (b) Inelastic (c) Zero (d) Equal to 2
38. All are objectives of price control policy except ___________. (a) Prevent exploitation of consumers (b) To help low income earners (c) To make huge profit (d) To prevent fluctuation of price
39. Cross elasticity of demand are applicable to _________ types of goods. (a) perishable (b) durable (c) Non-durable (d) complementary
40. __________ is when a small change in price leads to a greater change in quantity supplied. (a) Elasticity (b) Inelasticity (c) Unitary (d) Perfect elastic
Section B : Theory
Instruction : Answer question One (1) and any other three (3) questions.
1. The supply situation for rice in country X over a period is as shown in the table below. Use the information in the table to answer the questions that follow.
| Periods | Price ($) | Quantity Supplied (bags) |
| December2009 | 30 | 100 |
| January 2011 | 40 | 150 |
| April 2013 | 50 | 160 |
Calculate the coefficient of price elasticity of supply for rice between December 2009 and January 2011.
1b. __________ is the supply of rice elastic or inelastic? Give a reason for your answer.
1c. State any three reasons which may cause an increase in the supply of rice.
2a. What is Utility?
2b. List three (3) types of utility and explain.
3a. What is Elasticity of Demand?
3b. Mention types of Elasticity of Demand.
4a. What is Rationing?
4b. Outline at least three (3) effects of Rationing.
5a