SSS Two Economics Objective Examination Questions

1. The graph of the function X = BY is
A. linear
B. quadratic
C. cubical
D. exponential
2. A direct relationship between two variables in economics will as a curve with a
A. negative slope
B. positive slope
C. constant slope
D. multiple slope
3. Which of the following has a derived demand?
A. Labour
B. Butter
C. Television
D. Bread (e) Motor car
4. Which of the following will shift the demand curve for Milo to the right?
A. An increase in the consumer’s income
B. A rise in the price of Milo
C. A tax on cocoa producers
D. A fall in quantity demanded of Milo (e) A fall in the price of Milo
5. If as result of a fall in the price of commodity X, the quantity demanded of commodity Y falls, then commodities X and Y are
A. complements
B. in joint demand
C. luxuries
D. substitutes (e) in composite demand
6. The quantity supplied of a commodity per week is represented by the function QS = 70 + 1/2P. At the price of N8.00, the quantity supplied will be
A. 70 units
B. 74 units
C. 76 units
D. 88 units (e) 98 units
7. The price system is a
A. situation where a single price rules
B. situation where the market price is determined through auction
C. system of price allocation by firms
D. system of resource allocation through the forces of demand and supply
8. What must be added to variable cost to give total cost?
A. fixed cost
B. marginal cost
C. average cost
D. average variable cost
9. The movement along the same demand curve best described as
A. change in demand
B. change in quantity demanded
C. shift in demand
D. shift in quantity demanded
10. In the long run, all factor inputs are
A. variable
B. diminishing
C. constant
D. fixed
11. When all factor inputs are doubled, the production possibility frontier will
A. shift from left to right and return to its original position
B. shift from left to right
C. remain in its former position
D. shift from right to left
12. The demand for a commodity that serves two or more purposes is
A. competitive
B. joint
C. complementary
D. derived (e) composite
13. If the variance (d2) = 60/10, then the standard deviation is
A. 2.45
B. 2.62
C. 3.33
D. 2.81 (e) 5.5
14. Given that fixed cost (FC) is N500.00, variable cost (VC) is N1,500.00 and output is 50 units, what will be the average cost (AC) of producing a unit?
A. N2,000.00
B. N60.00
C. N50.00
D. N40.00 (e) N30.00
15. The outward shift of the production possibility curve (PPC) could be due to
A. military conquest
B. increased money supply
C. inflation
D. economic growth
E. massive importation
16. The shape of the average cost (AC) shows that as production increases
A. total cost decreases
B. average cost increases
C. marginal cost steadily increases
D. total cost remains constant
17. A farmer spends $700 to produce 5 bags of rice, if the variable cost is $450. The average fixed cost (AFC) is
A. $25
B. $35
C. $40
D. $50.
18. Perishable goods such as tomatoes tend to have
A. elastic supply
B. inelastic supply
C. unitary elastic supply
D. fairly elastic supply.
19. Goods consumed out of habit have
A. elastic demand
B. perfectly elastic demand
C. inelastic demand
D. unitary elastic demand.
20. If the coefficient of price elasticity of demand is 0.1, demand is
A. elastic
B. inelastic
C. unit elastic
D. zero elastic.
21. Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450 units. That is the percentage change in quantity supplied?
A. 1%
B. 7.5%
C. 12.5%
D. 20%
22. When all factor inputs are reduced by half, the production possibility curve (PPC) will shift
A. outwards
B. inwards
C. downwards
D. upwards.

Use the table below to answer question 23, 24 and 25.

Units of variable factor	Total product
1	25
2	31
3	40
4	48
5	55

23. The marginal product at the fourth variable factor is ...
A. 12
B. 9
C. 8
D. 6.
24. The difference between the highest and the least marginal product of the variable factor is ...
A. 3
B. 8
C. 10
D. 12.
25. The average product of the variable factor when four units are employed is ...
A. 6
B.
C. 12
D. 48.
26. The law of diminishing returns operates in the
A. foreseeable future only
B. market period
C. long run
D. short run.
27. The cost which a firm will incur whether it is producing or not is referred to as
A. average cost
B. variable cost
C. opportunity cost
D. fixed cost.
28. Money cost is to an accountant as ... is to an economist
A. variable cost
B. real cost
C. marginal cost
D. fixed cost
29. TR which represents Total Revenue can be calculated by multiplying
A. marginal revenue by marginal cost
B. price by quantity demanded
C. average revenue by quantity sold
D. price by variable cost
30. When a set of data is represented by a curve, it is known as
A. ogive-chart
B. graph
C. table
D. pie chart.
31. Inequality is a glaring feature of …
A. capitalism
B. socialism
C. mixed economy
D. communism
32. A good example of a country which operates a socialist economy is …
A. Nigeria
B. USA
C. Ghana
D. Tanzania
33. Wages, to some extent, are determined by …
A. marginal utility of labour
B. average utility of labour
C. marginal productivity of labour
D. total population.
34. The working age in Nigeria is between the years …
A. 1-15
B. 18 – 65
C. 30-40
D. 65 and above.
35. The following are weapons that can be used by an employer’s association during a trade dispute except …
A. ticketing
B. strike breakers
C. blacklist
D. lock-out.
36. If the demand for labour exceeds the supply in a competitive labour market …
A. wage rate will rise
B. wage rate will fall
C. wage rate will be favourable to the employer
D. wage rate will be favorable to both employers and employees.
37. The size of the labour force is likely to be large if the …
A. birth rate is low
B. death rate is high
C. rate of emigration is high
D. rate of immigration is high.
38. The demand for labour is …
A. composite demand
B. joint demand
C. derived demand
D. competitive demand.
39. Which of the following is not a strong basis for trade union’s demand for higher wages? The …
B. company is making higher profit
B. productivity of the workers has increased
C. members of the union have high qualifications
D. commodity produced by the workers is very essential.
40. Which of the following will increase the demand for labour?
A. increased wage rate
B. labour’s demand for output
C. low wage rate
D. low marginal productivity of labour.
41. Frictional unemployment occurs when …
A. there is change in the technique of production
B. job seekers lack information where jobs exist
C. bad weather prevent work from progressing
D. job seekers have disabilities.
42. In a capitalist economy, resources are …
A. collectively owned
B. jointly owned
C. privately owned
D. communally owned.
43. An economic system where the central planning authority determines what goods to produce and in what quantity is known as …
A. market economy
B. socialist economy
C. welfare economy
D. traditional economy.
44. The interaction of demand and supply of labour determines …
A. production
B. income
C. wages
D. profit.
45. Which of the following sector is most labour intensive in Nigeria?
A. agriculture
B. petroleum
C. tourism
D. insurance.
46. A society that operates below the production possibility curve is using its productive resources …
A. optimally
B. efficiently
C. inefficiently
D. maximally.
47. What is the effect of pursuit of higher education on the size of labour force?
A. it makes the labour force to be defective
B. it brings higher wage rate
C. it increases the size of labour
D. it reduces the size of labour.
48. The birth rate in a town was 20 births per thousand. If the number of births was 500, the population of the town will be …
A. 2,500
B. 20,500
C. 25,000
D. 100,000.
49. In a command economy, the means of production is owned and controlled by …
A. employers
B. government
C. politicians
D. private firms.
50. If the working population of a country is 450,000 and 250,000 are employed, what is the unemployment rate (U)?
A. 40.44%
B. 43.44%
C. 44.44%
D. 54.44% (e) 55.55%.
51. Methods of production in Economics are broadly classified as …
A. capital and labour intensive
B. capitalist and socialist
C. direct and indirect
D. industrial and agricultural (e) urban and rural.
52. Where wages and other conditions of employment are negotiated and determined is …
A. labour force
B. labour market
C. labour demand
D. labour supply.
53. Majority of the developing countries of the world practice … economic system.
A. capitalism
B. socialism
C. mixed economy
D. communalism.
54. Which of the following is democratic in nature?
A. capitalism
B. socialism
C. mixed economy
D. communalism.
55. The purchase of pen and ink is an example of … demand.
A. competitive
B. complementary
C. composite
D. derived.
56. The size of population which is less than optimum is known as … population.
A. declining
B. dependent
C. independent
D. over (e) under.
57. The combination of a number of firms producing similar goods and services is called …
A. an industry
B. co-operative society
C. partnership
D. public enterprise (e) sole proprietorship.
58. The type of unemployment associated with a worker who though working, remains virtually unemployed is known as …
A. unemployment rate
B. disguised unemployment
C. physical unemployment
D. mental unemployment.
59. Which of the following measure can solve unemployment problem in West Africa?
A. dumping of goods
B. increase in government expenditure
C. importation of food stuff
D. increase in company tax.
60. If the establishment of a radio station in a locality has led to reduction in the sale of newspaper, the radio station and newspaper company are in
A. composite demand
B. complementary demand
C. competitive demand
D. derived demand.
61. Goods consumed out of habit have
A. elastic demand
B. inelastic demand
C. unit elastic demand
D. perfectly elastic demand.
62. If the coefficient of demand is 0.1, demand is
A. elastic
B. inelastic
C. unit elastic
D. zero elastic.
63. Due to an increase in the price from N20 to N30, a seller increases the quantity offered for sale from 400 units to 450 units. What is the percentage change in quantity supplied?
A. 20%%
B. 15%%
C. 30%%
D. 50%.
64. What is the percentage change in price?
A. 1%
B. 7.5%
C. 12.5%
D. 20%.
65. Which of the following functions of money is mostly affected during inflation?
A. Medium of exchange
B. unit of account
C. store of value
D. standard of deferred payment.
66. Perishable goods such as tomatoes tend to have … supply.
A. elastic
B. inelastic
C. unit elastic
D. zero elastic.
67. The gap between demand and supply curves below the equilibrium price indicates
A. excess supply
B. excess demand
C. equilibrium point
D. equilibrium quantity.
68. If the coefficient of cross elasticity of demand between two goods is positive, the goods are
A. luxury goods
B. substitutes
C. normal goods
D. compliments.
69. What must be added to variable cost to give total cost?
A. fixed cost
B. marginal cost
C. average cost
D. average variable cost.
70. The cost which a firm will incur whether it is producing or not is referred to as
A. average cost
B. variable cost
C. fixed cost
D. marginal cost.
71. A continuous fall in the general price level is called
A. inflation
B. deflation
C. stagflation
D. recession.
72. When an economy experiences inflation and high level of unemployment, it is called
A. depression
B. deflation
C. stagflation
D. recession.
73. Inequality is a glaring feature of …
A. capitalism
B. socialism
C. mixed economy
D. communism
74. A good example of a country which operates a socialist economy is …
A. Nigeria
B. USA
C. Ghana
D. Tanzania
75. The following are weapons that can be used by an employer’s association during a trade dispute except …
A. ticketing
B. strike breakers
C. blacklist
D. lock-out.
76. If the demand for labour exceeds the supply in a competitive labour market …
A. wage rate will rise
B. wage rate will fall
C. wage rate will be favourable to the employer
D. wage rate will be favorable to both employers and employees.
77. The demand for labour is …
A. composite demand
B. joint demand
C. derived demand
D. competitive demand.
78. Where the burden of tax finally falls is called …
A. tax object
B. tax rate
C. tax incidence
D. tax system.
79. The PAYE system in Nigeria is an example of …
A. progressive tax
B. regressive tax
C. proportional tax
D. company tax.
80. The tax whose rate increases as the tax base increases is known as …
A. progressive tax
B. regressive tax
C. proportional tax
D. company tax.
81. Which of the following is a direct tax?
A. import duties
B. purchase tax
C. personal income tax
D. export duties.
82. Budget deficit can be financed by …
A. reducing the level of taxation
B. printing more money
C. lending to financial institutions
D. employing more workers.
83. Public expenditure on education and health is known as …
A. general services
B. social services
C. commercial services
D. economic services.
84. TR which represents total revenue can be calculated by multiplying …
A. marginal revenue by marginal cost
B. price by quantity demanded
C. average revenue by quantity sold
D. price by variable cost.
85. Money cost is to an accountant as … is to an economist.
A. variable cost
B. real cost
C. marginal cost
D. fixed cost.
86. The movement along the same demand cure is a …
A. change in demand
B. change in quantity demanded
C. shift in demand
D. market demand.
87. A direct relationship between two variables in Economics will be shown as a curve with a …
A. negative slope
B. positive slope
C. constant slope
D. multiple.
88. The graph of the function x = a + by is …
A. linear
B. quadratic
C. cubical
D. exponential.
89. A farmer spends $700 to produce 5 bags of rice, if the variable cost is $450, the average fixed cost (AFC) is …
A. $25
B. $35
C. $40
D. $50.
90. A 50% increase in tax on a good resulted in a %50 increase in total revenue. What is the coefficient of price elasticity of demand for the good?
A. 0
B. 1.0
C. 1.5
D. 2.0.