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
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
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
4. The father of Economics is
A. Professor Lionel Robbins
B. Alfred Marshall
C. Adam Smith
D. A .C Pigou
5. Opportunity cost is also called ... cost
A. paper
B. money
C. real
D. general
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
7. The relationship between ends and means is
A. choice
B. scale of preference
C. opportunity cost
D. scarcity.
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 the need.
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.
10. The concept of opportunity cost helps the individual to
A. make rational choice
B. maximise profit
C. minimise cost
D. produce goods.
11. Which of the following is a measure of central tendency?
A. Arithmetic mean
B. Mean deviation
C. Standard deviation
D. Variance
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
13. The sum of items divided by the number of items is the
A. median
B. frequency
C. mode
D. Mean
14. Find the mean of the following numbers:
8, 6, 4, 2, 5
A. 4
B. 5.5
C. 6
D. 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
16. The reward for the effort of an entrepreneur in production is
A. salary
B. profit
C. interest
D. commission
17. Basic extractive activities are classified as ... production
A. manufacturing
B. tertiary
C. Secondary
D. primary
18. The demand for economic recourses 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.
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
20. The forgone alternative in Economics is simply the
A. marginal cost
B. cost of forgone product
C. total cost
D. opportunity cost
D. average cost.
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
22. The efficiency of labour depends on the
A. quality of labour
B. supply of labour
C. quantity of labour
D. demand for labour
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
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
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
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
27. Which of the following tool of economic is used when data contains more than one category?
A. Bar charts
B. Component bar charts
C. Graphs
D. Curves
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
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
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.
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
32. All the following are factors determining what to produce except …
A. consumers’ needs
B. market demand
C. technique of production
D. total population
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
34. Which of the following is not an economic system?
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
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.
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.
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.
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.
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.
40. A limited liability company is owned by the …
A. president
B. workers
C. general manager
D. share holders.
41. Transferring ownership of a foreign business in a country to its citizens is called …
A. decentralization
B. commercialization
C. nationalization
D. deregulation.
42. The reward for capital is called …
A. rent
B. wages
C. profit
D. interest.
43. The reward for entrepreneur as a factor of production is called …
A. rent
B. wages
C. profit
D. interest.
44. The reward for labour is called …
A. rent
B. wages and salaries
C. profit
D. interest.
45. Which of the following is a man-made factor? …
A. land
B. labour
C. capital
D. entrepreneurship.
46. The creation of utility connotes …
A. production
B. distribution
C. consumption
D. exchange.
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.
48. Production for consumption is termed …
A. primary production
B. secondary production
C. direct production
D. indirect production.
49. The provision of commercial and professional services is called …
A. primary production
B. secondary production
C. direct production
D. tertiary production.
50. Partnership agreement is known as …
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association.
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.
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.
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.
54. Which of the following is a public corporation? …
A. PW PLC.
B. Diamond Bank PLC.
C. Nigerian Ports Authority
D. Dangote Cement LTD.
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 share holders.
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.
57. The Federal Radio Corporation of Nigeria (FRCN) is a …
A. public limited company
B. private limited company
C. public corporation
D. private authority.
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.
59. Durable assets of a business are called ….
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital.
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.
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.
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
63. A commodity with legal backing for its acceptance is called
A. commodity money
B. legal money
C. legal tender
D. quasi money.
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.
65. Which of the following is not an economic system?
A. mixed economy
B. capitalist economy
C. socialist economy
D. commercial economy
66. The working age in Nigeria is between the years …
A. 1 – 15
B. 65 and above
C. 30- 40
D. 18 - 65.
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.
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.
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.
70. A limited liability company is owned by the …
A. president
B. workers
C. general manager
D. share holders.
71. The reward for capital is called …
A. rent
B. wages
C. profit
D. interest.
72. When a worker changes from one type of job to another, it is called …
A. geographical mobility of labour
B. occupational mobility of labourl
C. rural-urban migration of labour
D. immobility of labour.
73. The reward for entrepreneur as a factor of production is called …
A. rent
B. wages
C. profit
D. interest.
74. The reward for labour is called …
A. rent
B. wages and salaries
C. profit
D. interest.
75. Which of the following is a man-made factor? …
A. land
B. labour
C. capital
D. entrepreneurship.
76. The creation of utility connotes …
A. production
B. distribution
C. consumption
D. exchange.
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.
78. Production for consumption is termed …
A. primary production
B. secondary production
C. direct production
D. indirect production.
79. The provision of commercial and professional services is called …
A. primary production
B. secondary production
C. direct production
D. tertiary production.
80. Partnership agreement is known as …
A. deed of partnership
B. prospectus
C. article of association
D. memorandum of association.
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.

82. The lender of last resort in the banking system is …
A. central bank
B. Diamond Bank PLC.
C. commercial bank
D. development bank.
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 share holders.
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.
85. Acceptance of deposits is the main function of …
A. commercial banks
B. central banks
C. mortgage banks
D. development banks.
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.
87. Durable assets of a business are called ….
A. working capital
B. liquid capital
C. fixed capital
D. circulating capital.
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.
89. ATM stands for …
A. automatic teller machine
B. automated teller machine
C. automated time-saving machine
D. automatic ticket machine.
90. The most mobile factor of production is …
A. land
B. labour
C. entrepreneur
D. fixed assets.