CATHOLIC DIOCESE OF ABAKALIKI

DEPARTMENT OF EDUCATION
2024/2025 MOCK EXAMINATION FOR SS 3
SUBJECT: ECONOMICS TIME: 2 HOURS
PAPER 1(OBJECTIVES) INSTRUCTION: ANSWER ALL QUESTIONS
CHOOSE THE CORRECT ANSWER FOR EACH QUESTION FROM THE OPTIONS LETTERED
A—D.
1. The study of economics is mainly concerned with how to (a) rank individual’s wants given the
abundant resources (b) make choice when resources are inadequate (c) satisfy every member of all
societies (d) produce all the goods needed by everyone
2. Scale of preference shows (a) incomes of consumer in order of size (b) utilities enjoyed by
consumers (c) opportunity cost of goods consumed (d) consumer wants in order of priority
3. In economics, inferior goods are regarded as goods that (a) have lower demand as consumers
income increases (b) have higher demand as consumers income increases (c) experiences lower
market value as consumer uses them (d) people consume less because they are of lower standard.
4. If demand for NEPA light decline as a result of increase in the use of solar installations, then the
two services are in (a) composite demand (b) derived demand (c) competitive demand
(d)complementary demand
5. In determining the growth of a country’s population, infant mortality is a component of
(a)immigration rate (b) fertility rate (c) net migration (d) death rate
6. If the Central Bank increases its bank rate (a) many banks will shut down completely (b) customers
will borrow more from banks (c) the supply of money will be reduced (d) interest charges by banks
will fall
7. The fixed cost of producing 100 units of a good is $600. If the variable cost is $400, the average
total cost of one unit of the good is (a) $4 (b) $6 (c) $8 (d) $10
8. Which of the following factors may affect the efficiency of labour? (a) provision of welfare
services (b) education and training (c) race and colour of workforce (d) quality of other factor
inputs
9. The law of diminishing return states that (a) total and average products rise together and falls
(b)average and marginal products falls and then rises (c) average and the marginal product first
rise and eventually falls (d) the marginal product rises first, the total product falls later
10. A commodity with perfectly inelastic demand has the burden of tax borne by (a) the buyers alone
(b) the government alone (c) both the sellers and the buyers (d) both the sellers and the government
11. As consumption of beer increases, its marginal utility to a drinker will (a) decrease (b) remain
constant (c) fluctuate (d) increase
12. Abundant natural resources do not contribute to economic growth in developing countries because
of (a) high rate of inflation (b) urban congestion (c) over- reliance on multiple commodities
(d)mismanagement and corruption
13. A major disadvantage of capitalist economy is that it (a)leads to production of goods and services
(b) requires large number of officials to operate (c) worsens waste and inefficiency in using
productive resources (d) considers individual consumers satisfaction top notch
14. The difference between the mean and mean deviation of these set of numbers; 6, 4, 2, 5, 3 is (a)1.2
(b) 2.8 (c) 4.0 (d) 5.0
15. Which of the following measure can be designed to reduce the excess profits of wholesalers and
retailers? (a) sales tax (b) value added tax (c) purchase tax (d) entertainment tax
Use the table below to answer questions 16 and 17.
Bottles of beer Total Utility Marginal Utility Average Utility
taken (Tu) (Mu) (Au)
1 20 20 20
2 28 8 14
3 34 6 P
4 36 Q 9
16. What is the value of P? (a) 18 (b) 5.6 (c) 11.3 (d) 17
17. Determine the value of Q? (a) 5 (b) 4 (c) 3 (d) 2
18. The term marginal propensity to consume can best be described as (a) desire to spend more income
on consumption (b) change in consumption as a percentage of the change in income (c) average
income regularly spent on consumption (d) total expenditure on consumption
19. Public expenditure can be financed from all the following sources except (a) borrowing (b) grant-
in – aid (c) royalties and rents (d) mobilization fees
20. To overcome the problem of double counting under the expenditure approach (a) value added
method is used (b) only spending on final goods are considered (c) proper accounting standards
must be used (d) spending on intermediate goods and inputs are considered
21. The production of rice locally in Nigeria as against importing from foreign countries is _______
strategy. (a) foreign investment (b) import promotion (c) import substitution (d) large scale
industrial
22. To finance a deficit balance of payments, a country must decide to (a) reduce production (b) borrow
from abroad (c) secure more factors of production (d) import more essential commodities
23. Land as a factor of production is made useful through the (a) application of fertilizer (b) application
of human effort (c) acts of nature (d) use of machines
24. Which of the following is NOT an advantage of a direct tax? (a) progressive in nature (b) reduce
inequality of income (c) cheap to collect (d) easy to evade
25. Balance of payments deficit can be corrected by (a) purchasing foreign assets (b) accumulating
foreign reserves (c) export promotion measures (d) import promotion measures
26. One of the reasons for the poor performance of the agricultural sector in Nigeria is the (a) neglect
of the sector (b) high cost of agricultural inputs (c) absence of research efforts (d) too many farmers
in the sector
27. P and Q are substitute goods. What will be the reaction of consumers in a market where there is a
fall in the price of good P? (a) price of P will increase (b) demand for good Q will decrease
(c)demand for good P will decrease (d) supply of both good P and Q will increase
28. Industrialization in West Africa can be encouraged through the following except (a) creation of
industrial estates (b) increase in manpower training (c) reduction in company tax (d) high import
duties on industrial estates
29. Transformations resulting in equitable distribution of wealth in an economy are requirements of
(a) economic development (b) economic growth (c) economic integration (d) capital accumulation
30. The quantitative and qualitative improvement in the economy is economic (a) development
(b)growth (c) integration (d) planning
31. A compulsory fee levied on the income and property of an individual and firm is ____ tax (a) ad
valorem (b) direct (c) indirect (d) regressive
32. If change in consumption is 25 and change in national income is 50, what is the marginal propensity
to consume? (a) 25 (b) 2 (c) ½ (d) ¼
33. When demand for a commodity increases while supply remains unchanged, the equilibrium price
and quantity will (a) increase (b) decrease (c) remain constant (d) turn negative
34. The Net National Product (NNP) of a country is $70m while the depreciation allowance is $20m.
The Gross National Product (GNP) is (a)$40m (b) $50m (c) $100m (d) $1400m
35. Which of the following measures can correctly combact unemployment? (a) increase in interest
rate (b) increase in population (c) rise in importation (d) deficit budgeting
36. If an increase in the production of commodity A results to an increased production of commodity
B, the supply is (a) abnormal (b) composite (c) competitive (d) complementary
37. The following are causes of abnormal demand except (a) existence of inferior goods (b) rare
commodities (c) price of the commodity (d) articles of ostentation
38. Terms of trade in developing countries are worsening because (a) prices of their imports are
increasing relative to their exports (b) increase in the demand for primary products (c) they are
importers of agricultural products (d) they produce high quality and durable manufactured products
39. A market condition where profit is maximized when MR= AR= MC= AC= P is (a) monopoly
(b)oligopoly (c) perfect competition (d) duopoly
40. The policy aimed at formulating of economic policies for sustained growth in the economy is
referred to as (a) economic growth (b) economic planning (c) economic integration (d) export
promotion
41. Country M enjoys absolute advantage over country N in the production of commodities X and Y,
if country M (a) is more efficient than country N in producing both commodities X and Y (b) can
produce only commodity Y cheaper than country N (c) is inefficient in the production of both
commodities X and Y (d) and country N are efficient in the production of both goods.
42. Which of the following is NOT an advantage of economic integration in West Africa? (a) increased
trading activities among members (b) accelerates infrastructural facilities in the region (c)reduction
of unemployment rate among member countries (d) widens inequality of income among countries
43. The International Bank for Reconstruction and Development (IBRD) has its headquarters in
(a)Baghdad, Iraq (b) Geneva, Switzerland (c) Washington DC (d) Lome, Togo
44. Which of these organization is a cartel? (a) OPEC (b) IBRD (c) GATT (d) Ecowas
45. A major challenge in economic growth of Nigeria is (a) high level of literacy (b) increasing
inequality (c) high rate of employment (d) political stability
46. One indicator of the low level of capital formation in developing countries is (a) high of investment
(b) high rate of household savings (c) low importation of consumer goods (d) low per capita income
47. A developing country is characterized by the following except (a) high rate of illiteracy (b) low
level of factor of productivity (c) high life expectancy rate (d) over dependence on imported goods
48. Which of the following is a function of commercial banks? (a) creation of money (b) adviser to the
government (c) management of foreign reserves (d) regulation of micro finance banks
49. Assisting members solve temporary balance of payment problems is the reason for the
establishment of the (a) World Bank (b) International Monetary Fund (c) African Development
Bank (d) Economic Commission for Africa
50. Which of these is a negative effect of petroleum on Nigerian economy? (a) employment generation
(b) increase in national income (c) neglect of agriculture (d) appreciation in per capita income

PAPER II (ESSAY)
INSTRUCTION: Answer one question from Section A and four questions from Section B.
SECTION A:
Question 1.
The population of Nigeria in 2000 was 75 million. From 2001 to 2005 the total number of births
and deaths stood at 52 million and 22 million respectively. 15 million immigrants and 10 million
emigrants were recorded in the reporting period.
(a) Present the above data in a table. (2 marks)
(b) i. Determine the net migration within the period. (2 marks)
ii. Calculate the population of the country in 2005. (3 marks)
(c) What is the percentage increase in the population of the country from 2000 to 2005?
(3 marks)

Question 2
The following data shows the budget of a hypothetical country in 2020. Study the data and answer the
questions that follow.

Revenue [$ million]
Company tax 240
Workers’ income tax 160
Excise duties 80
Taxes on exports 100
Value added tax 150
Import duties 90
Non- tax revenue 40
 (a) How much revenue was realized from (i) direct taxes (2 marks) (ii) indirect taxes (2 marks)
(b) What percentage of total revenue was collected as indirect taxes? (2 marks)
(c) i. If the total expenditure incurred by the government in the stated period was $1200 million, was
the budget surplus or deficit? (2 marks)
ii. Explain your answer. (2 marks)
SECTION B
Question 3
(a) i. What is a Partnership? (2 marks)
ii. State four characteristics of Partnership. (4 marks)
(b) Outline two differences between Private and Public enterprises. (4 marks)
QUESTION 4
(a) State the Law of diminishing marginal utility. (2 marks)
(b) i. Mention any two criticisms of the law of diminishing marginal utility.(2 marks)
ii. Explain the contention that the demand curve is derived from the utility theory. (6 marks)
QUESTION 5
(a) Explain the functions of money as a:
i. Measure of value (3 marks)
ii. Store of value (3 marks)
(b) Show how inflation affects these two functions of money. (4 marks)
QUESTION 6
(a) Define Terms of trade. (2 marks)
(b) Discuss four factors influencing a country’s terms of trade. (8 marks)
QUESTION 7
(a) What is Economic Planning? (2 marks)
(b) Explain four reasons why countries embark on development plans. (8 marks)
QUESTION 8
(a) What is meant by the term “unemployment”? (2 marks)
(b) Examine four consequences of unemployment in a developing country
(8 marks)
QUESTION 9
Highlight any five problems facing the Organization of the Petroleum Exporting Countries
(OPEC). (10 marks)