Paper 1 (SS 1)

1.    Economics is ___ (a) a physical science   (b) a social science (c) a pure science   (d) an art subject only.                              (e)a natural science.
2.    Scarcity in economics means that resources_________ (a) are not enough to share among the producers (b) needed to satisfy human want are limited    (c) are never enough to share among consumers (d) required to meet essential wants are unlimited

3.    Choice is necessary because resources _______ (a) are available  (b) can be found everywhere    (c) are constant (d) are scarce  (e) unlimited.

4.    All the following are the reasons we study economics expect______   (a) Rational decision. (b) Allocation of resources (c) Budget preparation.    (d) Creation (e)none of the above.
5.    The basic concern of economists is to________ (a) create human wants   (b) satisfy all human wants   (c) redistribute income so that it is used correctly      (d) allocate scarce resources to satisfy human wants.    (e) allocate unlimited resources to satisfy human wants
6.    Data presented in table are usually arranged in _____ (a) charts and table (b) rows and columns     (c) graph and rows (d) pictogram and columns (e) graph and columns.
7.    The basic economic problems of the society include_______ (a) what to produce, how and for whom                             (b) how to produce and sell                (c) scarcity, when to produce and how (d) scarcity, for whom to produce and how (e) how to produce and buy.
8.    A great number of economic problems result from ________(a) the reduction of poverty  (b) excessive supply of goods    (c) the availability of too many experts    (d) competing demand for scarce resources(e)none of the above.
9.    Which of the following defines economics most comprehensively?            (a) the study of buying and selling             (b) organization of industries and markets  (c) the study of human behaviour    (d) national development, planning and budgeting. (e)the study of the earth.
10.    Opportunity cost is defined as the __________ (a) money cost (b) cost of production (c) real cost (d) variable cost. (e)average cost. 
11.    The study of economics enables individuals to _____ (a) change job             (b) evade taxes (c) accumulate huge wealth (d) make rational decision  (e) make irrational decision.
12.    Economics is called a social science because it is ________ (a) a branch of the social studies (b) a study of the ways man devises to satisfy his unlimited wants from limited resources                 (c) a dismal science in the Malthusian sense (d) governed by scientific laws      (e) study only in foreign countries.

13.    The most basic concern of economists is to ___ (a)create human wants   (b) satisfy human wants   (c) redistribution of income  (d) create perfects competition.      (e)none of the above. 
14.    Which of the following is an economic activity? (a) Attending a town’s meeting (b) visit to the stadium                 (c) payment of school fees                              (d) arresting a petty thief                             (e)None of the above .
15.    Economics activities are undertaken to solve the problem of________ (a)consumption (b) Opportunity cost (c) production (d) scarcity(e)surplus.
16.    A list of consumers’ wants arranged in order of priority is known as ________  (a) a budget (b) an opportunity cost                                                 (c)a scale of preference (d)choice (e)Production possibility curve.
17.    The 150.00 naira which olu would have used to purchase a textbook was used to buy a T-Shirt. This implies that______ (a) olu’s real cost is 150.00 naira  (b) olu’s opportunity cost is the T-shirt he bought (c) olu’s opportunity cost is the textbook  (d) Olu’s money cost is also the real cost (e)none of the above.
18.    The main concern of economics is to ________(a) allocate scarce resources to satisfy human wants (b) satisfy all human wants  (c) redistribute income between the rich and the poor                   (d) control the growth of population (e)control the growth of urbanization. 
19.    Most of the problems of economics arise as a result of ______ (a)competing demand for scarce resources    (b) increase in demand for more goods and services (c) the desire for producers to supply more goods and services (d) the need to reduce the level of poverty  (e)none of the above.
20.    An arrangement of data in rows and column is referred to as a ______    (a) graph (b)bar chart  (c) pie chart  (d) table. (e)histogram.
21.    Which of the following is not a measure of central tendency?   (a) mean (b) mode (c) median     (d) weighted average.                      (e)none of the above.
22.    If 5,8,6 and 2 occur with frequencies 4,3,5 and 2 respectively, then arithmetic mean is ________ (a) 5.6    (b) 5.7 (c) 6.5 (d) 6.8.(e)7.0.
23.    Which of the following tools of economic analysis is used when data contains more than one category? (a) bar charts (b) component bar charts (c) graphs (d) symbolic statements(e)pictogram.
24.    The return on investment that is just sufficient to satisfy the owner of a business is called _____ (a) economic profit (b) business profit (c) normal profit  (d) excess profit(e)bonus profit. 
25.    Which of the following does not explain why a school principal earns more salary than a school messenger?  (a) length of training   (b) demand and supply (c) cost of training   (d) the messenger is a non-teaching staff(e)none of the above.
26.    The reward to capital as a factor of production is ____ (a) rent (b) wage  production is ____ (a)interest (b)rent (c)dividend (d)wages (e)profit
27.    The three broad categories of production are _____¬¬¬_                         (a)direct, secondary and extractive (b)primary, tertiary and direct (c)primary, secondary and tertiary (d)secondary, primary and indirect.  (e)primary, pre-primary and secondary.
28.    Land is a factor of production because it ____(a)is a free gift of nature (b)contains valuable mineral resources (c)assists in the creation of utility (d)is owned by individuals and government (e) is owned by landlords.
29.    Which of the following is an advantage of division of labour? (a)production of specialized goods (b)employment of experts (c)monotony of work (d)greater use of machinery. (e)none of the above.
30.    Which of the following is a function of an entrepreneur? (a)avoidance of risks (b)decision making   (c)employment control             (d)organizing unions.  (e) resources control.
31.    Land is often different from other factors of production because it _____ (a)is a free gift of nature (b)constitutes one –third of the entire world  (c)has different grades   (d)is owned by individuals.   (e)is used for different purposes.
32.    Division of labour  may be restricted when ____ (a)an ailing economy  has improved (b)producers live in villages (c)market is small   (d)there is full employment.    (e) none of the above.
33.    The basic concern  of economists is to _______  (a)create human wants (b)satisfy all human wants                                        (c) redistribute income so that it is used correctly (d)create perfect competition (e)allocate scarce resources to satisfy human wants.
34.    The real cost of a commodity is ____                    (a)the cost of the alternative that has to be sacrificed for it (b)the alternative that has to be forgone in order to purchase it (c)its market price   (d)the alternative cost involved when the opportunity of buying the commodity is missed   (e)the sacrifice that is made  after buying the commodity.
35.    Land is a most significant factor in terms of contribution to the economy because ________ (a)it enables us to build industries (b)we build houses on it (c)all our highways are constructed on it (d)we get a lot of fishes from it (e)vital resources from it enrich the economy.


1.    Define ‘Economics’ according to three different authors.
Write short notes on the following concepts;
(i)Resources and wants.
(ii)Scale of preference
(iii)Opportunity cost.
2.    Identify and explain the basic economic problems of the society.
3.    In what five ways is the study of Economics useful to mankind.
4.    Briefly explain  any two of the following concepts(i)Choice(ii)Scarcity

5.    The table below shows the age distribution of hypothetical population.
Age    No. of people(million)
1.    Under 20
2.    20-29
3.    30-59
4.    60 and above    20.90
Total    55.00
Present this information in the form of a pie chart. Show your workings clearly.

Paper 2 (SS 2)

 SECTION A: OBJECTIVES                                                                                                                
1.    A medium of exchange which is generally acceptable is _______               (a) barter (b) a cheque (c)government bond (d) money (e)none of the above.
2.    The supply of money in the economy includes _____ (a) bank notes only             (b) bank notes and coins (c) bank notes and bank deposits (d) bank notes, coins and bank deposits (e)none of the above.
3.    The indicator of the value of money is ________ (a) the general price level    (b) the equilibrium price (c)consumer’s income                                (d) its popularity (e)none of the above.
4.    A continuous fall in the general price level is __(a) recession (b) depression (c) deflation (d) inflation                  (e)labour market. 
5.    The main objective of setting up a private business organization is to ____ (a) protect the interest of the owners (b) promote experts   (c) provide infrastructure (d) maximum profits (e)minimum profits.

6.    The total stock of money available for use in an economy is ______ (a) a function of money (b) a characteristic of money (c) the demand of money (d) the supply of money (e)quality of money.
7.    Which of the following is not a reason for holding money? (a)ostentation (b)speculation (c) transactions (d) precautionary (e)none of the above.
8.    A certain amount of money is needed for everyday expenditure like buying of goods, transportation and others this is ___ (a) transaction demand for money (b)precautionary demand for money  (c) derived demand for money                                      (d) speculative demand for money (e)none of the above.
9.    Productive resources can also be called _____ (a) principal of production (b) factors of production (c) items of production (d)labour and material resources (e)primary production.
10.    Frictional unemployment can be reduced by ________ (a)encouraging the use of retraining scheme (b)removing barrier to labour mobility (c)restricting the introduction of new technology (d)lowering the level of wages paid to young people (e)none of the above.
11.    The most important quality of money is that it must be____ (a)relatively scarce (b)generally acceptable (c)portable (d)durable (e)transferable.
12.    One reason why small scale businesses are very common in West Africa is that _______ (a) they can easily float shares                                        (b) their management boards are easily formed (c) their initial capital is easy to raise (d)  their dividend payments are very regular(e)difficulty in establishment.
13.    Agriculture plays a dominant role in our country because_____ (a) it is the main source of energy (b) it employs more than 50% of the total labour force (c) it supplies all industrial inputs (d) there are large plantations of cocoa, groundnut and palm oil.                 (e) there are large cash and food crops.

14.    The total stock of money available for use in an economy is _______(a) a function of money (b) a characteristic of money (c) the demand of money (d) the supply of money(e) none of the above. 
15.    A demand schedule shows the quantities of goods that are ____ (a) bought at given prices at a time (b) supplied at given price at a time (c) produced at a given price at a time (d) reserved for future consumption (e) none of the above.
16.    Subsistence farming means producing food __¬¬¬____ (a) mainly for the need of our immediate and extended family (b) crops for sales mainly (c) crop mainly for expert (d) in order to satisfy government (e)crop mainly for export.
17.    Agriculture plays a dominant role in West Africa economics because_____ (a) the green revolution in Nigeria is culture (b) it supplies all the food consumed in Ghana (c) it is Main source of revenue  (d) it employs more than 60%  of total labour force in West Africa(e)none of the above.
18.    Which of the following is specialized in lending money for the purpose of developing  real estate?   (a)merchant banks                       (b)mortgage banks  (c)discount  houses  (d)commercial banks.   (e)co-operative banks.
19.    A country  where labour  is not  sufficient to make proper use of the natural resources is said  to have an __ (a)active population                          (b)optimum population    (c)over-population   (d)under –population    (e)middle-aged population.
20.    Malthus became famous through his theory which may be stated simply ____ (a)the death rate may become so high that people may not be able to produce   (b)population may outgrow the means of subsistence    (c)people will eventually decide not to have children   (d)migration of people from one place to another may leave some parts of the world barren.  (e)all of the above.

21.    Which of these would NOT increase the population of a country? (a)Increase in death rate    (b)decrease in birth rate (c)emigration (d)migration (e)better medical facilities.
22.    The optimum population of a country is reached when ____(a)all factors of production have 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   (e)the working population of a country increases.
23.    Which is NOT a cause of high population growth in Nigeria? (a)Family planning unit of Nigeria (b)Improved medical facilities (c)reduction in death rate (d)Improved hygiene (e)increased birth rate.
24.    Which of these best explains the Malthusian theory of population? (a)Increase in population causes hunger and death                                   (b)the population increases faster than food supply (c)the population grows at arithmetic progression while food production grows at geometric progression (d)people could be sent to ‘No man’s land’ when the population increases (e)People should produce as many children as they could because passion cannot be controlled.
25.    The supply of labour can be influenced by the ________ (a)size of the population (b)stage of economic development (c)size of the country (d)extent of the market. (e)none of the above.
26.    Mobility of labour is not affected by ________ (a)the optimum size of the population (b)marriage and family   (c)regulation of trade unions   (d)the period of training  (e)cultural and religious beliefs.

27.    The movement of a worker from one grade to another within the same industry is a form of mobility of labour which is __ (a)geographical (b)vertical (c)occupational (d)horizontal (e)lateral.
28.    The difference between birth rate and death rate is known as ________      (a)demographic transition   (b)  natural growth rate                     (c) Migration rate (d)  fertility rate (e)  infertility rate.
29.    All the following are features of optimum population except______     (a)  full employment of available resources (b)  unlimited amount of unexploited resources (c)  maximum per capita production and income. (d)  high standard of living (e) none of the above.
30.    Which of the following is capable of increasing the population of a country?  (a)  decrease in death rate  (b)  increase in death rate (c) poor medical facilities   (d) decrease in birth rate  (e)  none of the above.
31.    Natural growth rate of population can be defined as the _____                             (a)  difference between birth rate and death rate  (b)  number of births in a year  (c)  increase in the population growth in a year                          (d)  difference between the total population and the death rate.                    (e)  difference between birth rate and migration.
32.    The increase in population growth in big cities is referred to as _______                 (a) settlement (b) migration    (c) industrialization 

(d) urbanization (e) emmigration.
33.    The population density of town Y made up of 50 square kilometer land area and 100 million people is _______ (a) 50,000 people per square kilometer (b) 0.2 million people per square kilometer (c) 0.5 million per square kilometer (d) 2 million people per square kilometer. (e) 0.1million per square kilometer.
34.    A country where labour is not sufficient to make proper use of the natural resources is said to have an_____  (a)  active population (b)optimum population (c)  over population (d) under  population   (e) no population.
35.    When population is classified according to professions, it is called______ (a)  geographical distribution of population   (b) age distribution of population (c) sex distribution (d)occupational distribution of population (e) none of the above.
36.    The Malthusian theory of population does not concern itself with _____            (a)  growth of food production in arithmetical progression (b) growth of population in geometrical progression  (c) positive checks to population growth (d)  development and growth of manpower (e)  none of the above.
37.    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 turnover (d) mobility of labour (e)standing population.
38.    The term underpopulation refers to a situation where the population is _______ (a) dispersed over the country (b) small in relation to available resources (c)  greater than the available resources   (d) concentrated in a few areas. (e) none of the above.
39.    Census of population is usually conducted every______ (a)  20years (b) 15years. (c)10years (d) 7years (e) 5years.
40.    Malthus major contention is that __________ (a)population  increased in arithmetic progression while food production increased in geometric progression (b)population increased in geometric progression while food production increased in arithmetic progression (c)population and food growth rate will ,in future, be at par   (d)nations have to get enough manpower to cultivate available land for food (e)output from agriculture decreased as more and more of the poorer lands were brought into cultivation.


1.    Give two major views of Rev.Thomas Malthus in population theory.
(b) How relevant are his views to the economics realities of west African countries?
2.    (a) Explain any two causes of a declining population
(b) Outline any three factors which determine the size of your country’s working population.
3.    (a)Define mobility of labour.(b)What factors serve as obstacles to occupational mobility of labour?
4.    Define trade by barter.
(b)  Highlight 4 deficiencies of it .
5.    (a)Define money 
(b)Discuss the three motives of holding money.
6.    (a)Define Unemployment.
(b) Mention four(4) qualities of money.
(c)Identify and explain FOUR types of unemployment

Paper 3 (SS 3)   

SECTION A: OBJECTIVES:                                                                                                                                  
1.    International trade is necessary mainly because _________ (a)no country can live in economic isolation (b)different countries are endowed with the same nature and man-made resources (c)some  countries have comparative cost advantage in the production of certain commodities (d)the world demand for and supply of various categories of commodities is expanding very fast (e)countries want to  build up their foreign exchange reserves.
2.    Dumping in Economics means the selling of goods in a foreign market _______________ (a)at a price below that received in the home market (b)at a price above that received in the home market (c)at a price equal to the cost price in the home  market                                  (d) in order to encourage indigenous producers                                                                    (e)at a price equal to the selling price in the home market.
3.    The comparative cost doctrine of international trade means specialization in production according to____________ (a)absolute  cost advantage (b)absolute cost disadvantage (c)comparative cost disadvantage (d) comparative cost advantage (e)the availability of labour.
4.    Which of the following is not an objective of the indigenization policy in Nigeria? To (a)make Nigerians dominate their economy (b)Increase Nigeria participation in the economy (c)prevent foreign monopoly of the economy (d)eliminate foreign participation in the Nigerian economy (e)protect  the national interest and security.
5.    Terms of the trade simply means the price ____ (a)ratio of import to export (b)ratio of export multiplied by import (c)ratio of export to import                                                                             (d)ratio of export multiplied by price ratio of import (e)of export minus price of import.
6.    Balance of trade can be defined as _____ (a)the value of imports in relation to the value of a country’s exports (b)the price ratio of imports as against that of exports (c)equality in the total receipts and payments of a country in a year (d)percentage value of imports over percentage value of exports (e)prices of exports versus prices of imports.
7.    Tarrif can be defined as a compulsory levy on _________ (a)goods that are produced and consumed locally (b)foreign exchange earnings(c)imported but inferior goods(d)foreigners working in a country (e)imports and exports.

8.    International trade is different from internal trade because of the _______ (a)manufactured goods involved (b)currency differentials (c)homogeneity of products (d)heterogeneity of products (e)uniformity of prices.
9.    Which of the following is not a visible item in international trade payments? (a)payments for imported cars (b)receipts from cocoa exports (c)receipts from oil exports (d)payments for steel imports (e)payments to foreign shipping companies.
10.    The stability of the Nigerian economy depends mainly on the export price of ____ (a)groundnut (b)cotton (c)cocoa  (d)mineral oil (e)palm kernel.
11.    Which of the following countries is a major trading partner of Nigeria? (a)Britain (b)Canada (c)Japan (d)Germany (e)China.
12.    The instruments used in many countries to restrict imports include ________ (a)high tarrifs (b)price index (c)excise duties (d)bank rate (e)subsidies.
13.    Which of the following constitute the largest exports of the developing countries to the developed ones? (a)raw materials (b)finished consumer goods (c)labour services               (d)arms and ammunition (e)automobiles.
14.    Balance of payments deficit  implies that a country is ______ (a)importing  more than she is exporting (b)consuming less than she is producing (c)living below her means (d)more productive than others (e)none of the above.
15.    Balance of payments deficit can be corrected by____ (a)purchasing foreign assets (b)accumulating foreign reserves(c)export promotion measures   (d)import promotion measures                 (e)travelling abroad.
16.    The exchange of goods and services across different countries can be described as ______ (a)bi-lateral trade (b)multilateral trade (c)national trade (d)home trade (e)none of the above.
17.    Which of the following is a major barrier to international trade?  (a)religious differences amongst nations (b)uneven distribution of population across the world (c)educational imbalance between the developed and developing countries (d)ideological differences amongst nations. (e)race.

18.    International trade is based on the law of ____ (a)absolute  cost advantage (b)variable proportion  (c)comparative cost advantage                   (d)mutual co-operation   (e)none of the above.
19.    Invisible trade refers trade in ______ (a)services (b)goods and services (c)tangible goods (d)crude oil (e)local markets.
20.    Trade among west African countries  is poor because the ___(a)countries are self-sufficient (b)communication links are weak  (c)number of banks is insufficient (d)people are not enterprising (e)none of the above. 
21.    Nigeria indigenization decree was promulgated in order to______   (a) allow indigenes to have full participation in the economic activities of the country                  (b)drive away foreigners                                      (c)give equal chances to  indigenes and foreigners in making economic decision in the country (d)give industrial training to indigenes (e)indigenes expose to the economic activities of the country.
22.    An economic system in which most capital goods are owned by individuals and private firms is known as_____ (a)mixed economic (b)planned economy (c)capitalist economy (d)traditional economy (e)civilized economy.
23.    The price system refers to the system by which ____ (a)the government controls prices in the economy (b)prices tend to rise to a general level. (c)price allocates resources between consumer and producer goods (d)government allocates resources to consumers and producers (e)the producers fix the price of their products.
24.    Which of the following items is not included in measuring national income by the income approach? (a)wages and salaries of public servants (b)students’ grants and scholarships (c)profits of companies (d)income earned by self-employed persons such as lawyers (e)rents on property.
25.    A economic system in which the state owns and controls the means of production is known as __________. (a)free enterprise (b)socialist economy (c)mixed economy (d)capitalist economy (e)welfare economy.
26.    The difference between the Gross Domestic Product(GDP) and the Gross National Product(GNP) is the______  (a)allowance for total depreciation (b)total interest payment (c)net income from abroad (d)total tax and interest payments (e)net internally generated income.
27.    Under the socialist economy, the decision on what to produce is determined by the ______ (a)producers (b) level of expected profit (c)price (d)government (e)preferences of consumers.
28.    Which of the following best describes the multiplier? (a)product of income and expenditure (b)curves of saving and expenditure (c)ratio of change in income to the expenditure that brought it about (d)constant level of income (e)equality of marginal propensities to consume and save.

29.    Net National Product (NNP) is equal to the _______ (a)Gross Domestic Product(GDP) less depreciation (b)Gross National Production (GNP) less depreciation (c)Gross Domestic Product(GDP) plus depreciation (d)Gross National Production(GNP) plus depreciation (e)Gross National income plus Taxation.
30.    In calculating the Gross National Product(GNP) by the income approach, all the following are included except ________ (a)wages and salaries   (b)direct taxes paid by persons and companies                                                                (c)rents on houses (d)retirement benefits (e)business profits.
31.    The economic system in which the decisions about what to produce, how to produce and for whom to produce are made by private firms is called____________ (a)socialism (b)welfarism (c)communism (d)capitalism (e)traditionalism.
32.    A major setback in any mixed economy is ____ (a)that it combines both the capitalist and socialist systems (b) freedom of choice in the production and consumption of goods and services (c) that government intervenes to secure full utilization of resources                       (d)that economic decisions are determined by market forces. (e) that the  absence of profit motive in the public  sector may reduce incentive for hard work.
33.    Which of the following is a factor affecting the size of national income?  (a) size of the active population  (b)taste of the consumers   (c)number of registered trade unions (d)credit-worthiness of the neighbouring countries  (e)regularity of payment of national debt.
34.    All economic systems must decide what to produce because________   (a)resources are not available              (b)consumers want maximum satisfaction (c)resources are limited in supply (d)producers want maximum profit (e)none of the above.
35.    A fall in national output will necessitate ______ (a)a  rise in expenditure on imports   (b) a rise in the level of savings (c)an increase in consumption expenditure (d)a rise in the standard of living  (e)a  rise in expenditure on exports.

36.    National income is used to measure ________ (a)a country’s population size   (b)a country’s economic growth    (c)the human level of development   (d)the flow of imports to a country    (e)none of the above.
37.    When a country’s net income from abroad is added to its total output, the result is _______ (a)gross domestic product (b)net national product (c)gross national product   (d)net domestic product      (e) none of the above. 
38.    Disposable income is total income ______ (a)less tax (b)divided by tax (c)plus tax (d)multiplied by tax (e)none of the above.
39.    If Y¬=income, C= consumption, I=investment, X=export and M=import, then national income is ________ (a)Y=C-I+(x+m) (b)Y=C+1+(x+m) (c)Y=C+1+(x-m) (d)Y=c+1+(m-x)     (e)Y-c +1+(m-x).
40.    Which of the following is excluded when extimating national income? (a)dividends (b)wages and salaries (c)transfer’ payments (d)profits (e)none of the above.                                   

1.    (a)Write short notes on the following;(i)Average propensity to save(APS)(ii)Marginal propensity to save(MPS)(iii) Marginal propensity to consume(MPC) 
(b)If the total national income increases from 200billion to 233 billion and total national consumption increases from 25billion to 28 billion ,calculate  the  MPC.
2.    (a)Discuss the meaning of indigenization comprehensively.
(b)Explain the reasons and objectives of indigenization.
3.    What is centrally planned economy?
(b)Outline any four features of a capitalist economy.
4.    Why does a country restrict her international trade?
5.    Highlight the causes of Balance of payments deficit in your country.
6.    (a)Define international trade 
(b)Discuss FOUR reasons why international trade is essential
(c)Identify and explain FOUR barriers of international trade 


Mr Bamidele Oladapo

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