THE FIRST CHOICE MODEL COLLEGE, JOS

FIRST TERM EXAMINATION 2024/2025

SUBJECT: ECONOMICS CLASS: S.S. 2 Duration: 11/2HR

Section A: Objective Answer all questions from this section.

1. Which of the following is not a set of measure of central tendency? (a) mode and mean (b) mean and
median (c) mean and percentile (d) mode and median
2. The most frequently occurring value in a given data is (a) mean (b) mode (c) range (d) median.
3. The formula (n+1)th is for calculating (a ) median (b ) mode (c ) mean (d) range.
2
4. The L1 in the formula for the calculation of measures of location represents......... (a) lower class
boundary of the median class (b) actual frequency of the modal class (c) upper class boundary of the
median class (d) frequency of the class just after the median class
5. The formation of cumulative frequency is necessary for the calculation of............ (a) mean (b) range
(c) median (d) mode
6. In a class of 5 students the following scores were obtained in a mathematics test 10,2,6,7,12. What is
the median score (A) 2 (B) 4(C) 6 (D) 7
7. Which measure of central tendency can be applied to find the highest goal scorer in a football match
(A) mean (b) Mode (C) Median (D) range
8. If the following scores 2, 4, 6, and 10 with frequencies 3,5,7, and 10 respectively makes up a
distribution, then the mean score is (A) 5.7 (B) 6.7 (C) 7.5 (D) 5.4
9. Which one of these assumptions do economists always make about consumers? (a) That they are all
wage earners (b) That they make rational decisions in the market (c) That they cannot spend more
than their incomes (d) That they can measure utility derived from consumption

10. Economics is called a science because it is (a) a branch of the social studies (b) a study of the
ways a man devices to satisfy his unlimited wants from limited resources (c) a dismal science in
the Mathusian sense (d) governed by scientific laws (e) the study of human wants by means of
scientific method of observation.
11. Economics is regarded as a social science because (a) economists are sociable (b) economics
socializes a person (c) the study of economics adopts the scientific method (d) economists adopt
the scientific method in the study of human behaviour. (e) all economists are socialist.

12. Economics may be defined as (a) the study of money and banking (b) the study of markets and
prices (c) the study of production and distribution (d) the study of human behaviour in the
allocation of scarce resources (e) the study of employment of labour, land and capital.

13. The study of economics enables individuals to: (a) change jobs (b) evade taxes (c) accumulate
huge wealth (d) make rational decisions (e) be stingy

14. Which of these is the real cost of satisfying any want in the sense of the alternative that has to be
forgone? (a) Variable cost (b) Opportunity cost (c) Total cost (d) Prime cost.
15. A scale of preference (a) is a list of goods and services to be purchased in order of priority (b)
(c)shows the monthly income of an individual (d) shows consumers’ preference for luxurious
goods.
15. At the equilibrium price, quantity demanded is (a) greater than quantity supplied (b) equal to quantity
supplied (c) less than quantity supplied (d) equal to excess supply
16. If the government fixes a price of a commodity above the equilibrium price, the quantity supplied will
be (a) less than the quantity demanded (b) equal to the quantity demanded (c) greater than the
quantity demanded (d) equal to zero
 17. The market price of a commodity is normally determined by the (a) law of demand (b) interaction of
the forces of demand and supply (c) total number of people in the market (d) total quantity of the
commodity in the market
18. The gap between demand and supply curves below the equilibrium price indicates (a) excess demand
(b) excess supply (c) equilibrium quantity (d) equilibrium price
19. If prices fall below the equilibrium (a) demand will equal supply (b) demand will be greater than
supply (c) supply will be greater than demand (d) quantity supplied will be zero
20. If elasticity of supply is greater than 1 supply is (a) Unitary elastic (B) Inelastic (c) Elastic (d)
Infinitely elastic
21. When the demand curve is a straight line parallel to x axis, demand is (a) fairly elastic (b) fairly
inelastic(c) Perfectly elastic (d) Perfectly inelastic
22. If elasticity of demand for a commodity is less than 1, demand is (a) Unitary elastic (b) Inelastic (c)
Infinitely elastic (d) Zero elastic
23. If the price of a commodity rises from N2 to N4 and its demand decrease from 125 to 100 then the co-
efficient of elastic of demand is (a) 0.02 (b) 0.20 (c) 0.25 (d) 5
24. For a good having close substitutes the price elasticity of demand is likely to be (a) Zero (b) negative
(c) more than (d) less than
25. The responsiveness of demand to a change in income is the measurement of_______(a) arc elasticity
of demand (b) cross elasticity of demand (c) income elasticity of demand (d) Price elasticity of
demand
26. Given the income of A and B as________
Income Quantity demanded kg
A 20,000 120
B 36,000 96
The income elasticity between A and B is ________
(a) 0.25 (b) 0.95 (c) 2.3 (d) 2.7
27. What kind of good is between A and B above?
(a) private good (b) public good (c) luxury (d) necessity
28. Given income C and D and quantity demanded as follows:
Income Quantity Demanded
40,000 160
44,000 200
Calculate the coefficient of income elasticity of demand
(a) 2.5 (b) 4.7 (c) 0.44 (d) 6.5
29. When an increase in consumer’s income leads to a decrease in quantity demanded of a commodity,
income elasticity of demand is............? (a) indeterminable (b) positive (c) constant (d) negative
30. Income elasticity of demand is negative for............... (a) normal goods (b) competitive goods (c)
inferior goods (d) complementary goods
ESSAY QUESTIONS
INSTRUCTION: Answer QUESTION 1 and Any TWO other questions

1a. I. Define price elasticity of demand. II. Highlight the five (5) types of price elasticities
b. The figure below was-extracted from the demand schedule of Kingsley Nanta, a consumer of bread.
Price in naira Quantity Demanded

Old New Old New

50 70 200 160

You are required to calculate:

i. Percentage change in quantity demanded
ii. Percentage change in price
iii. Co-efficient of price elasticity of demand
iv. From your answer in iii above state whether demand is elastic or inelastic.
v. Explain your answer in iv above.

2 (a) With the aid of relevant diagrams, distinguish between demand schedule and demand curve.
(b) The following table shows the distribution of marks scored by a class of students in a promotion
examination.

Marks Number of students

10-29 6
30-39 5
40-49 7
50-59 10
60-69 5
70-79 4
80-89 3
I. Calculate the mean mark.
II. Find the mode.

3. (a) I. Define elasticity of demand. II. Explain the three (3) types of elasticities of demand
(b)The scores obtained by 10 students in a test are 80, 30, 50, 20, 70, 50, 70, 30, 60 and 50. Calculate
the (i) mean (ii) mode; and (iii) median if the scores are as presented in the table below

Marks Frequency

20 1
30 2

50 3

60 1

70 2

80 1

4. (a) Explain the concept of equilibrium in a free market.

The demand and supply equations for a commodity (in a free market) are given as:
Qd = 10 – 2p; Qs = 4p – 8
(b) Given that P is in naira; Qd and Qs are in kg, Determine
The equilibrium Price
The Equilibrium quantity
(c)
If the price (P) were to be N4.00, what will be the excess supply?
If the price were fixed at N1.00, what will be the excess demand?

5. (a) State the formula for calculating: I. income elasticity of demand II. Cross elasticity of demand
(b) Write short notes on EACH of the following;
(i) abnormal demand (ii) Effective demand (iii) Demand schedule (iv) Demand curve (v) Price system /
price mechanism