Below is an Economics Mock Examination for SS3-Updated. Students who are planning to write JAMB, WAEC or GCE can use the questions to practice and become perfect. The answers will be provided shortly.

Economics Mock Examination and Answers

Answer all the question below

(1) The following are examples of economic goods except (a) bottled water (b) air (c) household utensils (d) shelter

(2) A tent-making factory offers (a) personal services (b) indirect services (c) social services (d) reflex services

(3) In which of the following economic systems do we have mostly private ownership of resources and individual decision making? (a) capitalist system (b) socialist system (c) mixed system (d) traditional system

4) The sum of items divided by the number of item is the (a) frequency (b) mean (c) median (d) mode

(5) Find the median of the following set of scores: 8, 9, 6, 5, 10 (a) 9 (b) 8 (c) 6 (d) 5

See also: SS3 Agric Science Second Term Test and Examination

(7) Goods for which demand rises as income rises are (a) complementary goods (b) inferior goods (c) normal goods (d) substitutes

(8) The slope of a supply curve is (a) horizontal (b) uniform (c) positive (d) vertical

(9) Equilibrium price is the price at which quantity (a) demanded is greater than
quantity supplied (b) supplied is greater than quantity demanded (c) demanded is equal to quantity supplied (d) supplied equals quantity produced

(10) A decrease in supply with demand remaining unchanged will cause the equilibrium price for good to (a) be unchanged (b) remain elastic (c) remain inelastic (d) rise

(11) At the HIGHEST level of total utility, marginal utility is (a) negative (b) positive and falling (c) positive and rising (d) zero

(12) The law of diminishing marginal utility states that, the more a commodity is consumed the (a) higher the satisfaction derived from an additional unit(b) higher the price (c) lower the supplied (d) lower the rate of increase in the total utility derived

(13) Greater inter-dependence among workers in production is associated with (a) utility (b) manufacturing (c) division of labour (d) factory workers

(14) If TC, FC and VC represents total cost, fixed cost and variable cost respectively, which of the following is correct? (a) TC = FC – VC (b) FC = TC + VC (c) TC > FC + VC (d) TC = FC + VC

(15) The reward to land as a factor of production is (a) profit (b) rent (c) interest (d) wage

(16) A firm is said to be a public joint stock when it (a) is owned by the government (b) sells its shares to the members of the public (c) operates as government corporation (d) is not legally recognized as a firm

(17) All the following are sources of finance to a joint stock company except (a) debentures (b) cooperative loans (c) shares (d) bank loans

(18) The public sector of an economy includes (a) cooperative societies (b) nationalized industries (c) joint stock companies (d) pressure groups

(19) One advantage of the sole proprietorship over other forms of business organizations is that it can (a) make very high profit (b) employ many workers (c) keep its affairs private (d) produce on a very large scale

(20) Which of the following is obtainable in a perfect market (a) P = MR > AR (b) MR = MC > P (c) MR < P (d) P = MR = MC

(21) The wholesaler performs the following functions except (a) breaking the bulk (b) offering credit facilities to consumers (c) financing manufacturers (d) buying in bulk from manufacturers

Age group 1983
0 – 15 30%
16 – 40 27%
41 – 60 25%
61 and above 18%

(22) The table shows the age distribution of country A in 1983. Using data in the table, calculate the percentage of working population in 1983. (a) 48% (b) 52% (c) 57% (d) 70%

(23) A country whose population size is too small relative to its resources is (a) over populated (b) optimally populated (c) under populated (d) producing the optimum output

(24) An efficient weapon used in resolving disputes between employers and employees is (a) co-operation (b) collective bargaining (c) display of placards (d) legal actions

(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

(26) The role of government in promoting agricultural development includes the following EXCEPT (a) paying the wages of all farmers (b) establishing and funding research (c) formulation of policies (d) provision of rural infrastructure

(27) The following are advantages of large scale agriculture EXCEPT (a) use of simple implements (b) use of sophisticated implements (c) increase in employment (D) integration of crop and animal farming

(28) The following are all factors determining the location of industry EXCEPT (a) minimum wage rate (b) availability of labour (c) nearness to raw material (d) proximity to market

(29) Which of the following is not a concept of national income accounting? (a) domestic national product(DNP) (b) gross national product(GNP) (c) gross domestic product(GDP) (d) net domestic product(NDP)

(30) Which of the following equations is appropriate for determining the Net Domestic Product (NDP)? (a) NDP = GNP – depreciation (b) NDP = GDP + Net income from abroad (c) NDP = GDP – depreciation (d) NDP = GDP x Net income from abroad

(31) Which of the following over-estimates the value of national income? (a) incomplete statistical data (b) wrong timing of computation (c) changes of prices of goods within the year (d) double counting

(32) 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 for money (d) the supply of money

(33) Which of the following is NOT a reason for holding money? (a) ostentation (b) Speculation (c) transaction (d) precautionary

(34) The BEST way of combating demand-pull inflation Is to (a) increase income taxes (b) reduce income taxes (c) increase import duties (d) increase salaries and wages

(35) In which of the following ways has inflation adversely affected your country’s economy (a) increase in money supply (b) a fall in real income (c) appreciation in the value of money (d) increased employment

(36) Which of the following is a legal tender (a) bank notes (b) bank overdraft (c) bills of exchange (d) money order

(37) The central bank controls money supply through the following EXCEPT () lending to public (b) bank rate (c) legal reserve requirement (d) open market operation

(38) One of the functions of the Central Bank is (a) production of goods (b) issuing of currency (c) presenting budgets (d) printing of checkbook

(39) The function of the central bank as a lender of last resort means that when all other sources fail, (a) the consumer can always borrow money from the central bank (b) the Government can ask the central bank to print more money (c) commercial Banks raise loans from the Central Bank (d) commercial banks can deposit money with the central bank

(40) One disadvantage of direct taxes is that they (a) allocate scarce resources (b) are not rigid (c) can be progressive (d) can be evaded

See Also: Second Term Jss2 PHE Exam and Test

(41) Excise duty is levied on (a) the total population (b) local products (c) luxury goods (d) the working population

(42) A component of the national debt of a country is (a) taxation (b) bank saving (c) the budget (d) treasury bills

(43) When the demand for a good is fairly inelastic, the burden of an indirect tax falls (a) more on the consumer of the goods (b) more on the seller of the goods (c) on the sellers and consumers equally (d) completely on the capital

(44) Dumping means the selling of goods in a foreign market at a price that is (a) below the home market price (b) above the home market price (c) equal to the home market price (d) able to clear the home market

(45) Which of the following groups of accounts makes up the balance of payments? (a) the current account; multiple account and capital account (b) monetary movement account; company account and international account (c) cash account; double entry account and current account (d) capital account; current account and monetary movement account

(46) a country’s balance of payment is in deficit when (a) a country’s payment for imports of invisible goods are greater than her receipts of exports of invisible goods (b) the total receipts from her export of visible and invisible goods are greater than her payments for visible and invisible imports (c) it can record a surplus on current account of her balance of payment account (d) the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods

(47) In order to stabilize oil price in the world market, there is need for OPEC members to (a) always have budget deficit (b) encourage competition among themselves (c) adhere to production quotas (d) fix the price of non-oil products

(48) Which of the following is not a member of the economic community of west African states (ECOWAS)? (a) cape verde (b) Mauritania (c) Cameroun (d) Niger

(49) Which of the following is not a type of economic integration? (a) Customs market (b) common market (c) Economic union (d) free trade area

(50) Which of the following is not an international economic organization? (a) Economic commission for Africa(ECA) (b) African development Bank(ADB) (c) World Health Organization(WHO) (d) International monetary funds(IMF)

Theory

Question 1
a. Define the following terms and explain their interrelationships:
(i) Primary production
(ii) Secondary production
(iii) Tertiary production

b. Describe in detail when production is considered complete.

c. Clearly differentiate between consumer goods and producer goods, providing at least two examples of each.

Question 2
a. Explain why scarcity is considered the fundamental problem in economics.

b. Highlight the key differences between opportunity cost and money cost.

Question 3
a. Identify and explain five factors that hinder the establishment of industries in rural areas of West Africa.

b. Differentiate between the concepts of industry location and industry localization.

Question 4
Write brief explanations for the following:
a. Budget surplus
b. Budget deficit
c. Recurrent expenditure and capital expenditure
d. Balanced budget

Question 5
a. Explain the differences between Gross National Product (GNP) and Gross Domestic Product (GDP).

Also see: https://www.waeconline.org.ng/e-learning/Commerce/Commmain.html