SSS One Economics Objective Examination Questions
1. Economics is a study of human wants as it relates to the:
A. efficient allocation of resources
B. operation of companies
C. production of goods
D. generation of income
A. efficient allocation of resources
B. operation of companies
C. production of goods
D. generation of income
Check Answer
Correct Answer: A
Explanation: Economics is primarily concerned with how society manages its scarce resources to satisfy unlimited wants.
Explanation: Economics is primarily concerned with how society manages its scarce resources to satisfy unlimited wants.
2. The branch of Economics which deals with small units or components of the economy is called ... economics:
A. unite
B. macro
C. micro
D. mono
A. unite
B. macro
C. micro
D. mono
Check Answer
Correct Answer: C
Explanation: Microeconomics focuses on individual units like households and firms, whereas Macroeconomics looks at the whole economy.
Explanation: Microeconomics focuses on individual units like households and firms, whereas Macroeconomics looks at the whole economy.
3. Economics as a science is different from the physical science because it:
A. deals with human behaviour
B. deals with inanimate matter
C. deals with people of the same behaviour
D. supply food to the people at cheaper cost
A. deals with human behaviour
B. deals with inanimate matter
C. deals with people of the same behaviour
D. supply food to the people at cheaper cost
Check Answer
Correct Answer: A
Explanation: Economics is a social science; it studies the unpredictable and complex nature of human decision-making.
Explanation: Economics is a social science; it studies the unpredictable and complex nature of human decision-making.
4. The father of Economics is:
A. Professor Lionel Robbins
B. Alfred Marshall
C. Adam Smith
D. A.C Pigou
A. Professor Lionel Robbins
B. Alfred Marshall
C. Adam Smith
D. A.C Pigou
Check Answer
Correct Answer: C
Explanation: Adam Smith is widely cited as the father of modern economics following his 1776 book, "The Wealth of Nations."
Explanation: Adam Smith is widely cited as the father of modern economics following his 1776 book, "The Wealth of Nations."
5. Opportunity cost is also called ... cost:
A. paper
B. money
C. real
D. general
A. paper
B. money
C. real
D. general
Check Answer
Correct Answer: C
Explanation: It is called 'real cost' because it represents the actual alternative sacrificed rather than just the monetary value.
Explanation: It is called 'real cost' because it represents the actual alternative sacrificed rather than just the monetary value.
6. Means are scarce because:
A. they are abundant in supply
B. they are unlimited in supply
C. they have alternative uses
D. wants are unlimited
A. they are abundant in supply
B. they are unlimited in supply
C. they have alternative uses
D. wants are unlimited
Check Answer
Correct Answer: C
Explanation: Scarcity exists because resources (means) are limited and can be put to different competing uses.
Explanation: Scarcity exists because resources (means) are limited and can be put to different competing uses.
7. The relationship between ends and means is:
A. choice
B. scale of preference
C. opportunity cost
D. scarcity
A. choice
B. scale of preference
C. opportunity cost
D. scarcity
Check Answer
Correct Answer: D
Explanation: Scarcity is the fundamental relationship between unlimited ends (wants) and limited means (resources).
Explanation: Scarcity is the fundamental relationship between unlimited ends (wants) and limited means (resources).
8. The problem of choice arises in a firm because:
A. workers’ desires are limited
B. there are alternative ways of producing goods
C. supply of resources is adequate
D. firms can always have what they need
A. workers’ desires are limited
B. there are alternative ways of producing goods
C. supply of resources is adequate
D. firms can always have what they need
Check Answer
Correct Answer: B
Explanation: Because resources are limited, a firm must choose which goods to produce and which methods to use.
Explanation: Because resources are limited, a firm must choose which goods to produce and which methods to use.
9. Scale of preference is:
A. the arrangement of wants in order of importance
B. the arrangement of wants in order of unimportance
C. the arrangement of how one can spend his money
D. to arrange how one can travel to school
A. the arrangement of wants in order of importance
B. the arrangement of wants in order of unimportance
C. the arrangement of how one can spend his money
D. to arrange how one can travel to school
Check Answer
Correct Answer: A
Explanation: A scale of preference is a list of unsatisfied wants arranged in order of priority.
Explanation: A scale of preference is a list of unsatisfied wants arranged in order of priority.
10. The concept of opportunity cost helps the individual to:
A. make rational choice
B. maximise profit
C. minimise cost
D. produce goods
A. make rational choice
B. maximise profit
C. minimise cost
D. produce goods
Check Answer
Correct Answer: A
Explanation: By considering what is being given up, an individual can make the most logical and beneficial decision.
Explanation: By considering what is being given up, an individual can make the most logical and beneficial decision.
11. Which of the following is a measure of central tendency?
A. Arithmetic mean
B. Mean deviation
C. Standard deviation
D. Variance
A. Arithmetic mean
B. Mean deviation
C. Standard deviation
D. Variance
Check Answer
Correct Answer: A
Explanation: Measures of central tendency include Mean, Median, and Mode. The others listed (B, C, D) are measures of dispersion.
Explanation: Measures of central tendency include Mean, Median, and Mode. The others listed (B, C, D) are measures of dispersion.
12. What is the mode of the following scores?
15, 24, 10, 15, 10, 9, 8, 8, 8
A. 15
B. 10
C. 24
D. 8
15, 24, 10, 15, 10, 9, 8, 8, 8
A. 15
B. 10
C. 24
D. 8
Check Answer
Correct Answer: D
Explanation: The mode is the number that appears most frequently. In this set, '8' appears three times.
Explanation: The mode is the number that appears most frequently. In this set, '8' appears three times.
13. The sum of items divided by the number of items is the:
A. median
B. frequency
C. mode
D. Mean
A. median
B. frequency
C. mode
D. Mean
Check Answer
Correct Answer: D
Explanation: This is the mathematical definition of the Arithmetic Mean (Average).
Explanation: This is the mathematical definition of the Arithmetic Mean (Average).
14. Find the mean of the following numbers: 8, 6, 4, 2, 5
A. 4
B. 5.5
C. 6
D. 5
A. 4
B. 5.5
C. 6
D. 5
Check Answer
Correct Answer: D
Explanation: (8 + 6 + 4 + 2 + 5) / 5 = 25 / 5 = 5.
Explanation: (8 + 6 + 4 + 2 + 5) / 5 = 25 / 5 = 5.
15. When a set of data is represented by a curve, it is known as:
A. ogive-chart
B. graph
C. table
D. pie chart
A. ogive-chart
B. graph
C. table
D. pie chart
Check Answer
Correct Answer: B
Explanation: A graph (such as a line graph or frequency curve) uses a curve or line to represent data points.
Explanation: A graph (such as a line graph or frequency curve) uses a curve or line to represent data points.
16. The reward for the effort of an entrepreneur in production is:
A. salary
B. profit
C. interest
D. commission
A. salary
B. profit
C. interest
D. commission
Check Answer
Correct Answer: B
Explanation: In the factors of production, Land gets Rent, Labour gets Wages, Capital gets Interest, and the Entrepreneur gets Profit.
Explanation: In the factors of production, Land gets Rent, Labour gets Wages, Capital gets Interest, and the Entrepreneur gets Profit.
17. Basic extractive activities are classified as ... production:
A. manufacturing
B. tertiary
C. Secondary
D. primary
A. manufacturing
B. tertiary
C. Secondary
D. primary
Check Answer
Correct Answer: D
Explanation: Primary production involves extracting natural resources (farming, mining, fishing).
Explanation: Primary production involves extracting natural resources (farming, mining, fishing).
18. The demand for economic resources is considered a derived demand because it depends on:
A. the demand for the final product
B. productivity of the resources
C. the supply of the resources
D. the supply of the final product
A. the demand for the final product
B. productivity of the resources
C. the supply of the resources
D. the supply of the final product
Check Answer
Correct Answer: A
Explanation: Derived demand occurs when a factor is demanded only because of the demand for the good it helps produce (e.g., demand for bakers depends on the demand for bread).
Explanation: Derived demand occurs when a factor is demanded only because of the demand for the good it helps produce (e.g., demand for bakers depends on the demand for bread).
19. Scarcity is the principal problem faced by:
A. the poor in developing countries
B. societies who face the problem of unemployment
C. every individual, firm and government
D. the poor in both developing and developed countries
A. the poor in developing countries
B. societies who face the problem of unemployment
C. every individual, firm and government
D. the poor in both developing and developed countries
Check Answer
Correct Answer: C
Explanation: Scarcity is a universal problem affecting all levels of society because wants are always greater than available resources.
Explanation: Scarcity is a universal problem affecting all levels of society because wants are always greater than available resources.
20. The forgone alternative in Economics is simply the:
A. marginal cost
B. cost of forgone product
C. total cost
D. opportunity cost
A. marginal cost
B. cost of forgone product
C. total cost
D. opportunity cost
Check Answer
Correct Answer: D
Explanation: Opportunity cost is the next best alternative sacrificed when a choice is made.
Explanation: Opportunity cost is the next best alternative sacrificed when a choice is made.
The wages received by five labourers are: $55, $40, $45, $40, and $900
21. The mean wage in the data is affected by an:
A. irregular value
B. unrealistic value
C. abnormal value
D. extreme value
21. The mean wage in the data is affected by an:
A. irregular value
B. unrealistic value
C. abnormal value
D. extreme value
Check Answer
Correct Answer: D
Explanation: The value '$900' is an outlier or extreme value that will pull the mean significantly higher than the other wages.
Explanation: The value '$900' is an outlier or extreme value that will pull the mean significantly higher than the other wages.
22. The efficiency of labour depends on the:
A. quality of labour
B. supply of labour
C. quantity of labour
D. demand for labour
A. quality of labour
B. supply of labour
C. quantity of labour
D. demand for labour
Check Answer
Correct Answer: A
Explanation: Efficiency relates to productivity, which is driven by the skills, education, and health (quality) of the workers.
Explanation: Efficiency relates to productivity, which is driven by the skills, education, and health (quality) of the workers.
23. The concept of division of labour in economics is usually associated with:
A. Adam Smith
B. David Ricardo
C. Lord Keynes
D. Thomas Malthus
A. Adam Smith
B. David Ricardo
C. Lord Keynes
D. Thomas Malthus
Check Answer
Correct Answer: A
Explanation: Adam Smith famously illustrated the benefits of division of labour using a pin factory in 'The Wealth of Nations'.
Explanation: Adam Smith famously illustrated the benefits of division of labour using a pin factory in 'The Wealth of Nations'.
24. A successful advertisement for eggs will lead to:
A. an increase in the demand and price
B. a decrease in quantity demanded and price
C. an increase in the price and a fall in supply
D. a decrease in the quantity demanded and supplied
A. an increase in the demand and price
B. a decrease in quantity demanded and price
C. an increase in the price and a fall in supply
D. a decrease in the quantity demanded and supplied
Check Answer
Correct Answer: A
Explanation: Effective advertising increases consumer preference, shifting the demand curve to the right and typically raising the equilibrium price.
Explanation: Effective advertising increases consumer preference, shifting the demand curve to the right and typically raising the equilibrium price.
25. Labour is the most mobile factor of production but it may be limited by:
A. available medical facilities
B. family and social ties
C. length of working hours
D. size of the population
A. available medical facilities
B. family and social ties
C. length of working hours
D. size of the population
Check Answer
Correct Answer: B
Explanation: Family and social ties are a major cause of geographical immobility of labour.
Explanation: Family and social ties are a major cause of geographical immobility of labour.
26. Inferior goods in Economics are goods:
A. that are generally too bad for consumption
B. whose prices are lower than the prices of other goods
C. whose demand falls as income increases
D. whose price falls as demand increases
A. that are generally too bad for consumption
B. whose prices are lower than the prices of other goods
C. whose demand falls as income increases
D. whose price falls as demand increases
Check Answer
Correct Answer: C
Explanation: Inferior goods have a negative income elasticity; as people get richer, they switch to superior substitutes.
Explanation: Inferior goods have a negative income elasticity; as people get richer, they switch to superior substitutes.
27. Which of the following tool of economics is used when data contains more than one category?
A. Bar charts
B. Component bar charts
C. Graphs
D. Curves
A. Bar charts
B. Component bar charts
C. Graphs
D. Curves
Check Answer
Correct Answer: B
Explanation: Component (or segmented) bar charts are used to show the total value and the breakdown of different parts within that total.
Explanation: Component (or segmented) bar charts are used to show the total value and the breakdown of different parts within that total.
28. When a worker changes from one type of job to another, it is called:
A. geographical mobility of labour
B. occupational mobility of labour
C. immobility of labour
D. rural-urban migration
A. geographical mobility of labour
B. occupational mobility of labour
C. immobility of labour
D. rural-urban migration
Check Answer
Correct Answer: B
Explanation: Occupational mobility refers to the ability of workers to switch between different types of jobs or professions.
Explanation: Occupational mobility refers to the ability of workers to switch between different types of jobs or professions.
29. Division of labour is limited by:
A. the size of the market
B. the productivity of capital
C. cost of production
D. the factors of production
A. the size of the market
B. the productivity of capital
C. cost of production
D. the factors of production
Check Answer
Correct Answer: A
Explanation: According to Adam Smith, "division of labour is limited by the extent of the market." If the market is too small, specialization is not profitable.
Explanation: According to Adam Smith, "division of labour is limited by the extent of the market." If the market is too small, specialization is not profitable.
30. Entrepreneurship as a factor of production is scarce because:
A. not everyone has the time
B. it is difficult to obtain the qualification
C. a lot of people avoid taking risks
D. labour is also scarce
A. not everyone has the time
B. it is difficult to obtain the qualification
C. a lot of people avoid taking risks
D. labour is also scarce
Check Answer
Correct Answer: C
Explanation: Entrepreneurship involves risk-bearing. Many people prefer the security of a salary over the uncertainty of starting and managing a business.
Explanation: Entrepreneurship involves risk-bearing. Many people prefer the security of a salary over the uncertainty of starting and managing a business.
31. The following are basic economic problems of society except:
A. what to produce
B. how to produce
C. how to consume
D. for whom to produce
A. what to produce
B. how to produce
C. how to consume
D. for whom to produce
Check Answer
Correct Answer: C
Explanation: The three fundamental economic problems are What, How, and For Whom to produce. "How to consume" is a personal choice, not a foundational societal economic problem.
Explanation: The three fundamental economic problems are What, How, and For Whom to produce. "How to consume" is a personal choice, not a foundational societal economic problem.
32. All the following are factors determining what to produce except:
A. consumers’ needs
B. market demand
C. technique of production
D. total population
A. consumers’ needs
B. market demand
C. technique of production
D. total population
Check Answer
Correct Answer: C
Explanation: Technique of production (Labor-intensive vs Capital-intensive) determines **HOW** to produce, not **WHAT** to produce.
Explanation: Technique of production (Labor-intensive vs Capital-intensive) determines **HOW** to produce, not **WHAT** to produce.
33. The term ‘for whom to produce’ in economics means those who:
A. are producing the commodity
B. are enjoying what has been produced
C. will decide the goods to be produced
D. will decide the method of producing the goods
A. are producing the commodity
B. are enjoying what has been produced
C. will decide the goods to be produced
D. will decide the method of producing the goods
Check Answer
Correct Answer: B
Explanation: This refers to the distribution of goods—identifying the final consumers or the segment of the population that will use the products.
Explanation: This refers to the distribution of goods—identifying the final consumers or the segment of the population that will use the products.
34. Which of the following is not an economic system?
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
Check Answer
Correct Answer: D
Explanation: Capitalism, Socialism, and Mixed economies are recognized systems. "Commercial economy" is a descriptive term for trade-based activity but not a formal economic system.
Explanation: Capitalism, Socialism, and Mixed economies are recognized systems. "Commercial economy" is a descriptive term for trade-based activity but not a formal economic system.
35. Unlimited liability in business means:
A. the government can tax the company without limit
B. the debts of a company must be paid out of its assets
C. a company ceases to exit at the death of one of its owners
D. a firm must pay its debts from business as well as private funds
A. the government can tax the company without limit
B. the debts of a company must be paid out of its assets
C. a company ceases to exit at the death of one of its owners
D. a firm must pay its debts from business as well as private funds
Check Answer
Correct Answer: D
Explanation: In sole proprietorships and general partnerships, owners are personally responsible for all business debts; their personal assets (cars, houses) can be seized to pay creditors.
Explanation: In sole proprietorships and general partnerships, owners are personally responsible for all business debts; their personal assets (cars, houses) can be seized to pay creditors.
36. Joint ventures are partnerships involving:
A. the poor and the rich
B. employers and employees
C. government and private investors
D. multinationals and individuals
A. the poor and the rich
B. employers and employees
C. government and private investors
D. multinationals and individuals
Check Answer
Correct Answer: C
Explanation: A joint venture is typically a business arrangement in which two or more parties (often a government and a private firm) agree to pool their resources for a specific task.
Explanation: A joint venture is typically a business arrangement in which two or more parties (often a government and a private firm) agree to pool their resources for a specific task.
37. A distinguishing feature of a sole proprietorship is that:
A. control and supervision is under one man who is the owner
B. continuity is not a problem
C. it can obtain funds easily
D. it is always successful
A. control and supervision is under one man who is the owner
B. continuity is not a problem
C. it can obtain funds easily
D. it is always successful
Check Answer
Correct Answer: A
Explanation: The "sole" in sole proprietorship refers to the single individual who owns, controls, and manages the business.
Explanation: The "sole" in sole proprietorship refers to the single individual who owns, controls, and manages the business.
38. The practice whereby a business is owned by two or more independent firms is termed:
A. indigenization
B. joint venture
C. commercialization
D. foreign investment
A. indigenization
B. joint venture
C. commercialization
D. foreign investment
Check Answer
Correct Answer: B
Explanation: When independent entities (firms) collaborate to own a specific business project, it is a joint venture.
Explanation: When independent entities (firms) collaborate to own a specific business project, it is a joint venture.
39. A business outfit is said to be a public limited company (plc) when it:
A. is owned by the government
B. operates as a public corporation
C. is run by the public
D. sells its shares to members of the public
A. is owned by the government
B. operates as a public corporation
C. is run by the public
D. sells its shares to members of the public
Check Answer
Correct Answer: D
Explanation: A PLC is a company that has offered shares to the general public and has limited liability.
Explanation: A PLC is a company that has offered shares to the general public and has limited liability.
40. A limited liability company is owned by the:
A. president
B. workers
C. general manager
D. shareholders
A. president
B. workers
C. general manager
D. shareholders
Check Answer
Correct Answer: D
Explanation: Shareholders are the owners of a limited liability company; they provide the capital by purchasing shares.
Explanation: Shareholders are the owners of a limited liability company; they provide the capital by purchasing shares.
41. Transferring ownership of a foreign business in a country to its citizens is called:
A. decentralization
B. commercialization
C. indigenization (Note: User input said 'nationalization', but the specific transfer to citizens is Indigenization)
D. deregulation
A. decentralization
B. commercialization
C. indigenization (Note: User input said 'nationalization', but the specific transfer to citizens is Indigenization)
D. deregulation
Check Answer
Correct Answer: C
Explanation: Indigenization is the policy of increasing local participation and ownership in foreign-owned businesses. (Nationalization refers to government takeover).
Explanation: Indigenization is the policy of increasing local participation and ownership in foreign-owned businesses. (Nationalization refers to government takeover).
42. The reward for capital is called:
A. rent
B. wages
C. profit
D. interest
A. rent
B. wages
C. profit
D. interest
Check Answer
Correct Answer: D
Explanation: Capital earns interest as its reward in the production process.
Explanation: Capital earns interest as its reward in the production process.
43. The reward for entrepreneur as a factor of production is called:
A. rent
B. wages
C. profit
D. interest
A. rent
B. wages
C. profit
D. interest
Check Answer
Correct Answer: C
Explanation: The entrepreneur takes the risk and manages the business to earn profit.
Explanation: The entrepreneur takes the risk and manages the business to earn profit.
44. The reward for labour is called:
A. rent
B. wages and salaries
C. profit
D. interest
A. rent
B. wages and salaries
C. profit
D. interest
Check Answer
Correct Answer: B
Explanation: Labour receives wages (usually for manual/short-term work) or salaries (usually for professional/monthly work).
Explanation: Labour receives wages (usually for manual/short-term work) or salaries (usually for professional/monthly work).
45. Which of the following is a man-made factor?
A. land
B. labour
C. capital
D. entrepreneurship
A. land
B. labour
C. capital
D. entrepreneurship
Check Answer
Correct Answer: C
Explanation: Capital consists of man-made wealth (machines, tools, buildings) used to produce further wealth.
Explanation: Capital consists of man-made wealth (machines, tools, buildings) used to produce further wealth.
46. The creation of utility connotes:
A. production
B. distribution
C. consumption
D. exchange
A. production
B. distribution
C. consumption
D. exchange
Check Answer
Correct Answer: A
Explanation: Production is defined in economics as the creation of utility (the ability of a good or service to satisfy a want).
Explanation: Production is defined in economics as the creation of utility (the ability of a good or service to satisfy a want).
47. Production is not complete until:
A. goods are ready for consumption
B. goods are packaged
C. goods are sold
D. goods reach final consumers
A. goods are ready for consumption
B. goods are packaged
C. goods are sold
D. goods reach final consumers
Check Answer
Correct Answer: D
Explanation: In economics, production includes all activities (including transport and trade) until the product is in the hands of the person who will use it.
Explanation: In economics, production includes all activities (including transport and trade) until the product is in the hands of the person who will use it.
48. Production for consumption is termed:
A. primary production
B. secondary production
C. direct production
D. indirect production
A. primary production
B. secondary production
C. direct production
D. indirect production
Check Answer
Correct Answer: C
Explanation: Direct production is when an individual produces goods and services to satisfy their own needs (subsistence).
Explanation: Direct production is when an individual produces goods and services to satisfy their own needs (subsistence).
49. The provision of commercial and professional services is called:
A. primary production
B. secondary production
C. direct production
D. tertiary production
A. primary production
B. secondary production
C. direct production
D. tertiary production
Check Answer
Correct Answer: D
Explanation: Tertiary production covers the service sector, including transport, banking, teaching, and medical services.
Explanation: Tertiary production covers the service sector, including transport, banking, teaching, and medical services.
50. Partnership agreement is known as:
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association
Check Answer
Correct Answer: A
Explanation: The Deed of Partnership is the legal document that outlines the rules, profit-sharing ratios, and duties of partners.
Explanation: The Deed of Partnership is the legal document that outlines the rules, profit-sharing ratios, and duties of partners.
51. The partner who contributes only his name to the formation of a business is called:
A. general partner
B. active partner
C. nominal partner
D. sleeping or dormant partner
A. general partner
B. active partner
C. nominal partner
D. sleeping or dormant partner
Check Answer
Correct Answer: C
Explanation: A nominal partner allows their famous name to be used to attract customers but usually doesn't contribute capital or manage the business.
Explanation: A nominal partner allows their famous name to be used to attract customers but usually doesn't contribute capital or manage the business.
52. A limited liability company is also called:
A. an unlimited liability company
B. a quoted company
C. an unquoted company
D. a joint stock company
A. an unlimited liability company
B. a quoted company
C. an unquoted company
D. a joint stock company
Check Answer
Correct Answer: D
Explanation: Joint stock companies are businesses where capital is divided into shares owned by various people.
Explanation: Joint stock companies are businesses where capital is divided into shares owned by various people.
53. Where there is conflict between the memorandum of association and the article of association:
A. the memorandum prevails
B. the article prevails
C. the prospectus prevails
D. the deed prevails
A. the memorandum prevails
B. the article prevails
C. the prospectus prevails
D. the deed prevails
Check Answer
Correct Answer: A
Explanation: The Memorandum of Association is the dominant document as it defines the company's relationship with the outside world.
Explanation: The Memorandum of Association is the dominant document as it defines the company's relationship with the outside world.
54. Which of the following is a public corporation?
A. PW PLC.
B. Diamond Bank PLC.
C. Nigerian Ports Authority
D. Dangote Cement LTD.
A. PW PLC.
B. Diamond Bank PLC.
C. Nigerian Ports Authority
D. Dangote Cement LTD.
Check Answer
Correct Answer: C
Explanation: Nigerian Ports Authority is a government-owned enterprise (Public Corporation) established by an act of parliament.
Explanation: Nigerian Ports Authority is a government-owned enterprise (Public Corporation) established by an act of parliament.
55. The main economic objective of a public corporation is to:
A. provide essential services
B. make profit
C. be managed by board of directors
D. be controlled by shareholders
A. provide essential services
B. make profit
C. be managed by board of directors
D. be controlled by shareholders
Check Answer
Correct Answer: A
Explanation: Unlike private firms, the primary goal of public corporations is the welfare of citizens through service provision.
Explanation: Unlike private firms, the primary goal of public corporations is the welfare of citizens through service provision.
56. According to pattern of ownership, business organizations can be classified into:
A. sole proprietorship and partnerships
B. private enterprises and public enterprises
C. private limited companies and public limited companies
D. small scale enterprises and large scale enterprises
A. sole proprietorship and partnerships
B. private enterprises and public enterprises
C. private limited companies and public limited companies
D. small scale enterprises and large scale enterprises
Check Answer
Correct Answer: B
Explanation: Ownership classification divides businesses into those owned by individuals (Private) and those owned by the state (Public).
Explanation: Ownership classification divides businesses into those owned by individuals (Private) and those owned by the state (Public).
57. The Federal Radio Corporation of Nigeria (FRCN) is a:
A. public limited company
B. private limited company
C. public corporation
D. private authority
A. public limited company
B. private limited company
C. public corporation
D. private authority
Check Answer
Correct Answer: C
Explanation: FRCN is a statutory corporation owned and funded by the Federal Government of Nigeria.
Explanation: FRCN is a statutory corporation owned and funded by the Federal Government of Nigeria.
58. The number of partners for a banking business is:
A. 2 to 10
B. 2 to 20
C. 2 to 30
D. 2 to 40
A. 2 to 10
B. 2 to 20
C. 2 to 30
D. 2 to 40
Check Answer
Correct Answer: A
Explanation: While general partnerships can have up to 20 partners, banking partnerships are legally limited to a maximum of 10.
Explanation: While general partnerships can have up to 20 partners, banking partnerships are legally limited to a maximum of 10.
59. Durable assets of a business are called:
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital
Check Answer
Correct Answer: C
Explanation: Fixed capital consists of long-term assets like buildings, land, and machinery that are used repeatedly in production.
Explanation: Fixed capital consists of long-term assets like buildings, land, and machinery that are used repeatedly in production.
60. The main source of capital for a sole proprietor is:
A. undistributed profits
B. bank loans and overdrafts
C. trade credit
D. personal savings
A. undistributed profits
B. bank loans and overdrafts
C. trade credit
D. personal savings
Check Answer
Correct Answer: D
Explanation: Most sole traders start their businesses using their own money or "personal savings."
Explanation: Most sole traders start their businesses using their own money or "personal savings."
61. The most dominant economic activity which employs the largest number of people in West Africa is:
A. manufacturing
B. transport
C. government
D. agriculture
A. manufacturing
B. transport
C. government
D. agriculture
Check Answer
Correct Answer: D
Explanation: Agriculture remains the largest employer of labour in most West African countries, primarily through subsistence farming.
Explanation: Agriculture remains the largest employer of labour in most West African countries, primarily through subsistence farming.
62. The following are basic economic problems of society except:
A. what to produce
B. how to produce
C. how to consume
D. for whom to produce
A. what to produce
B. how to produce
C. how to consume
D. for whom to produce
Check Answer
Correct Answer: C
Explanation: "How to consume" is not considered one of the three fundamental economic problems (What, How, and For Whom to produce).
Explanation: "How to consume" is not considered one of the three fundamental economic problems (What, How, and For Whom to produce).
63. A commodity with legal backing for its acceptance is called:
A. commodity money
B. legal money
C. legal tender
D. quasi money
A. commodity money
B. legal money
C. legal tender
D. quasi money
Check Answer
Correct Answer: C
Explanation: Legal tender is any form of payment allowed by law to be used in the settlement of a financial debt.
Explanation: Legal tender is any form of payment allowed by law to be used in the settlement of a financial debt.
64. The size of the labour force is likely to rise if the:
A. birth rate is low
B. death rate is high
C. population size is low
D. population size is high
A. birth rate is low
B. death rate is high
C. population size is low
D. population size is high
Check Answer
Correct Answer: D
Explanation: A larger total population generally translates to a larger working-age population (labour force).
Explanation: A larger total population generally translates to a larger working-age population (labour force).
65. Which of the following is not an economic system?
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
Check Answer
Correct Answer: D
Explanation: While "commercial" refers to trade, it is not a categorized economic system like Capitalism or Socialism.
Explanation: While "commercial" refers to trade, it is not a categorized economic system like Capitalism or Socialism.
66. The working age in Nigeria is between the years:
A. 1 – 15
B. 65 and above
C. 30- 40
D. 18 - 65
A. 1 – 15
B. 65 and above
C. 30- 40
D. 18 - 65
Check Answer
Correct Answer: D
Explanation: 18 is the legal age of employment, and 65 is the standard retirement age for many sectors in Nigeria.
Explanation: 18 is the legal age of employment, and 65 is the standard retirement age for many sectors in Nigeria.
67. A distinguishing feature of a sole proprietorship is that:
A. control and supervision is under one man who is the owner
B. continuity is not a problem
C. it can obtain funds easily
D. it is always successful
A. control and supervision is under one man who is the owner
B. continuity is not a problem
C. it can obtain funds easily
D. it is always successful
Check Answer
Correct Answer: A
Explanation: Sole proprietorships are characterized by individual ownership and total control by one person.
Explanation: Sole proprietorships are characterized by individual ownership and total control by one person.
68. The practice whereby a business is owned by two or more independent firms is termed:
A. indigenization
B. joint venture
C. commercialization
D. foreign investment
A. indigenization
B. joint venture
C. commercialization
D. foreign investment
Check Answer
Correct Answer: B
Explanation: A joint venture involves a partnership between two independent business entities to share risks and profits.
Explanation: A joint venture involves a partnership between two independent business entities to share risks and profits.
69. A business outfit is said to be a public limited company (plc) when it:
A. is owned by the government
B. operates as a public corporation
C. is run by the public
D. sells its shares to members of the public
A. is owned by the government
B. operates as a public corporation
C. is run by the public
D. sells its shares to members of the public
Check Answer
Correct Answer: D
Explanation: PLCs are listed on the Stock Exchange and allow members of the general public to buy shares.
Explanation: PLCs are listed on the Stock Exchange and allow members of the general public to buy shares.
70. A limited liability company is owned by the:
A. president
B. workers
C. general manager
D. shareholders
A. president
B. workers
C. general manager
D. shareholders
Check Answer
Correct Answer: D
Explanation: Ownership in a limited liability company is vested in the shareholders who hold the company's equity.
Explanation: Ownership in a limited liability company is vested in the shareholders who hold the company's equity.
71. The reward for capital is called:
A. rent
B. wages
C. profit
D. interest
A. rent
B. wages
C. profit
D. interest
Check Answer
Correct Answer: D
Explanation: Interest is the payment made for the use of capital in the production process.
Explanation: Interest is the payment made for the use of capital in the production process.
72. When a worker changes from one type of job to another, it is called:
A. geographical mobility of labour
B. occupational mobility of labour
C. rural-urban migration of labour
D. immobility of labour
A. geographical mobility of labour
B. occupational mobility of labour
C. rural-urban migration of labour
D. immobility of labour
Check Answer
Correct Answer: B
Explanation: Occupational mobility refers to movement between different types of employment or professions.
Explanation: Occupational mobility refers to movement between different types of employment or professions.
73. The reward for entrepreneur as a factor of production is called:
A. rent
B. wages
C. profit
D. interest
A. rent
B. wages
C. profit
D. interest
Check Answer
Correct Answer: C
Explanation: Profit is the reward for the risk and management efforts of the entrepreneur.
Explanation: Profit is the reward for the risk and management efforts of the entrepreneur.
74. The reward for labour is called:
A. rent
B. wages and salaries
C. profit
D. interest
A. rent
B. wages and salaries
C. profit
D. interest
Check Answer
Correct Answer: B
Explanation: Labour is rewarded through wages (hourly/daily) or salaries (monthly).
Explanation: Labour is rewarded through wages (hourly/daily) or salaries (monthly).
75. Which of the following is a man-made factor?
A. land
B. labour
C. capital
D. entrepreneurship
A. land
B. labour
C. capital
D. entrepreneurship
Check Answer
Correct Answer: C
Explanation: Capital is man-made wealth used for the production of further wealth (machines, equipment, etc.).
Explanation: Capital is man-made wealth used for the production of further wealth (machines, equipment, etc.).
76. The creation of utility connotes:
A. production
B. distribution
C. consumption
D. exchange
A. production
B. distribution
C. consumption
D. exchange
Check Answer
Correct Answer: A
Explanation: Production is the process of transforming resources into goods or services that have utility (satisfaction) for consumers.
Explanation: Production is the process of transforming resources into goods or services that have utility (satisfaction) for consumers.
77. Production is not complete until:
A. goods are ready for consumption
B. goods are packaged
C. goods are sold
D. goods reach final consumers
A. goods are ready for consumption
B. goods are packaged
C. goods are sold
D. goods reach final consumers
Check Answer
Correct Answer: D
Explanation: Production includes the entire chain, including transportation and marketing, until the consumer receives the product.
Explanation: Production includes the entire chain, including transportation and marketing, until the consumer receives the product.
78. Production for consumption is termed:
A. primary production
B. secondary production
C. direct production
D. indirect production
A. primary production
B. secondary production
C. direct production
D. indirect production
Check Answer
Correct Answer: C
Explanation: Direct production occurs when people produce goods solely for their own use (subsistence farming).
Explanation: Direct production occurs when people produce goods solely for their own use (subsistence farming).
79. The provision of commercial and professional services is called:
A. primary production
B. secondary production
C. direct production
D. tertiary production
A. primary production
B. secondary production
C. direct production
D. tertiary production
Check Answer
Correct Answer: D
Explanation: Tertiary production refers to the service industry, which facilitates trade and provides expert skills.
Explanation: Tertiary production refers to the service industry, which facilitates trade and provides expert skills.
80. Partnership agreement is known as:
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association
Check Answer
Correct Answer: A
Explanation: The Deed of Partnership is the legal document binding the partners together.
Explanation: The Deed of Partnership is the legal document binding the partners together.
81. A limited liability company is also called:
A. an unlimited liability company
B. a quoted company
C. an unquoted company
D. a joint stock company
A. an unlimited liability company
B. a quoted company
C. an unquoted company
D. a joint stock company
Check Answer
Correct Answer: D
Explanation: Joint stock companies are firms where the capital is shared among many investors (stockholders).
Explanation: Joint stock companies are firms where the capital is shared among many investors (stockholders).
82. The lender of last resort in the banking system is:
A. central bank
B. Diamond Bank PLC.
C. commercial bank
D. development bank
A. central bank
B. Diamond Bank PLC.
C. commercial bank
D. development bank
Check Answer
Correct Answer: A
Explanation: The Central Bank (e.g., CBN in Nigeria) acts as the lender of last resort by providing liquidity to commercial banks during financial stress.
Explanation: The Central Bank (e.g., CBN in Nigeria) acts as the lender of last resort by providing liquidity to commercial banks during financial stress.
83. The main economic objective of a public corporation is to:
A. provide essential services
B. make profit
C. be managed by board of directors
D. be controlled by shareholders
A. provide essential services
B. make profit
C. be managed by board of directors
D. be controlled by shareholders
Check Answer
Correct Answer: A
Explanation: Public corporations (parastatals) focus on public welfare and service delivery rather than profit maximization.
Explanation: Public corporations (parastatals) focus on public welfare and service delivery rather than profit maximization.
84. According to pattern of ownership, business organizations can be classified into:
A. sole proprietorship and partnerships
B. private enterprises and public enterprises
C. private limited companies and public limited companies
D. small scale enterprises and large scale enterprises
A. sole proprietorship and partnerships
B. private enterprises and public enterprises
C. private limited companies and public limited companies
D. small scale enterprises and large scale enterprises
Check Answer
Correct Answer: B
Explanation: Ownership pattern primarily distinguishes between private (individual/group) and public (government) ownership.
Explanation: Ownership pattern primarily distinguishes between private (individual/group) and public (government) ownership.
85. Acceptance of deposits is the main function of:
A. commercial banks
B. central banks
C. mortgage banks
D. development banks
A. commercial banks
B. central banks
C. mortgage banks
D. development banks
Check Answer
Correct Answer: A
Explanation: Commercial banks are the only banks that accept demand deposits (current accounts) from the general public.
Explanation: Commercial banks are the only banks that accept demand deposits (current accounts) from the general public.
86. The number of partners for a banking business is:
A. 2 to 10
B. 2 to 20
C. 2 to 30
D. 2 to 40
A. 2 to 10
B. 2 to 20
C. 2 to 30
D. 2 to 40
Check Answer
Correct Answer: A
Explanation: Legally, banking partnerships are limited to 10 members, whereas other businesses can have up to 20.
Explanation: Legally, banking partnerships are limited to 10 members, whereas other businesses can have up to 20.
87. Durable assets of a business are called:
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital
Check Answer
Correct Answer: C
Explanation: Fixed capital refers to assets like land and machinery that last for a long time in the production process.
Explanation: Fixed capital refers to assets like land and machinery that last for a long time in the production process.
88. The main source of capital for a sole proprietor is:
A. undistributed profits
B. bank loans and overdrafts
C. trade credit
D. personal savings
A. undistributed profits
B. bank loans and overdrafts
C. trade credit
D. personal savings
Check Answer
Correct Answer: D
Explanation: Individual owners typically start their businesses using their own hard-earned savings.
Explanation: Individual owners typically start their businesses using their own hard-earned savings.
89. ATM stands for:
A. automatic teller machine
B. automated teller machine
C. automated time-saving machine
D. automatic ticket machine
A. automatic teller machine
B. automated teller machine
C. automated time-saving machine
D. automatic ticket machine
Check Answer
Correct Answer: B
Explanation: "Automated Teller Machine" is the correct technical term for the electronic banking outlet.
Explanation: "Automated Teller Machine" is the correct technical term for the electronic banking outlet.
90. The most mobile factor of production is:
A. land
B. labour
C. entrepreneur
D. fixed assets
A. land
B. labour
C. entrepreneur
D. fixed assets
Check Answer
Correct Answer: B
Explanation: Labour is the most mobile factor, as people can move between locations (geographical mobility) or jobs (occupational mobility). Note: Some argue Capital is more mobile in modern finance, but in standard SSS curriculum, Labour is the focus.
Explanation: Labour is the most mobile factor, as people can move between locations (geographical mobility) or jobs (occupational mobility). Note: Some argue Capital is more mobile in modern finance, but in standard SSS curriculum, Labour is the focus.
Final Thoughts on Your Economics Preparation
Success in Economics objective exams like WAEC, NECO, or JAMB requires a mix of conceptual understanding and consistent practice. These 90 questions cover the foundational pillars of the SSS curriculum—from basic definitions to the complexities of production and banking.
Pro Tip: Don't just memorize the answers. Read the explanations provided in the "Check Answer" sections to understand the "why" behind each correct choice. This will help you answer similar questions even if they are phrased differently in your exam.
If you found these questions helpful, be sure to bookmark this page and share it with your classmates. You can also explore our CBT Portal for more interactive practice!