New Curriculum Second Term Economics examination for SS 1

Class: SSS 1
Term: Second Term
Subject: Economics
Time: 2 Hours
Total Marks: 70

SECTION A — OBJECTIVES (40 MARKS)
Instruction: Answer all 40 questions. Choose the most appropriate option. Each question carries 1 mark.

1. Which assertion is NOT a valid conclusion from a rising population alone?
   (a) Every household becomes poorer without exception.    (b) Demand for services may increase.    (c) Labour supply may expand over time.    (d) Infrastructure planning may need adjustment.
2. How does improved storage help a farmer manage market timing and reduce losses?
   (a) ensure all products have identical shelf life    (b) reduce post-harvest losses and improve sale timing    (c) eliminate every price variation    (d) replace cultivation skills
3. Which factor would NOT normally encourage saving, all else equal?
   (a) Clear future financial goals    (b) Persistent pressure to spend above income    (c) Reliable saving channels    (d) Predictable earnings
4. The main reason small manufacturers require financial services is often to _____.
   (a) replace customers' preferences    (b) avoid purchasing raw materials permanently    (c) end all competitive pressures    (d) fund equipment and manage working capital
5. An enterprise allows its ownership units to be transferred as shares. Identify the ownership form.
   (a) sole proprietorship    (b) ordinary partnership without shares    (c) joint-stock company    (d) informal household business
6. In what way does limited liability reduce the shareholder’s personal financial exposure?
   (a) personal loss is generally limited to the investment committed    (b) the company can never incur debts    (c) every investment always yields dividends    (d) directors cannot be held responsible for misconduct
7. The ________ helps public planners decide where new schools and health facilities may be needed.
   (a) wholesale price invoice    (b) population census    (c) retail stock ledger    (d) partnership agreement
8. The main reason analysts group economic activities into sectors is to _____.
   (a) prove that one sector needs no workers    (b) compare their contributions and constraints    (c) ensure every sector produces identical goods    (d) remove all interdependence between industries
9. Which change would undermine a household’s saving if its income remains fixed?
   (a) a higher share of income set aside    (b) a reduction in avoidable expenses    (c) a sustained increase in discretionary spending with unchanged income    (d) a rise in income with spending held constant
10. A farmer installs irrigation to reduce reliance on seasonal rainfall. Identify the farm risk being addressed.
    (a) the need for packaging design    (b) the classification of fisheries    (c) uncertainty in water supply    (d) the use of exchange rates
11. ________ is the part of disposable income not spent on current consumption.
    (a) consumption expenditure    (b) saving    (c) an import tariff    (d) a production subsidy
12. Overpopulation is better judged relative to _____.
    (a) available resources and productive capacity    (b) only the height of buildings    (c) whether births occurred last week    (d) the number of roads alone
13. Which situation most directly undermines the accuracy of census returns?
    (a) Clear enumeration boundaries    (b) Trained enumerators    (c) People giving incorrect ages or addresses    (d) Independent checking of completed forms
14. The correct step when a savings target is repeatedly missed is to _____.
    (a) count borrowed money as earned income    (b) stop recording expenses    (c) assume the shortfall will correct itself    (d) compare actual income and spending with the plan and adjust
15. Which would NOT normally support productive-sector growth?
    (a) Persistent transport bottlenecks    (b) Skills development    (c) Improved access to financing    (d) Reliable infrastructure
16. A government evaluates a rural-road scheme. Which outcome best measures its benefit to farmers?
    (a) More unsold perishables    (b) Reduced delivery losses and lower travel costs    (c) Longer delays reaching buyers    (d) Rising spoilage caused by transport
17. The correct step in choosing a farming system is to _____.
    (a) copy another farm without assessing conditions    (b) ignore land suitability    (c) invest without estimating resource requirements    (d) match climate, soil, labour and capital to the enterprise
18. The ________ generally has ownership separated from day-to-day management by appointed directors.
    (a) limited company    (b) one-person corner shop by definition    (c) traditional family occupation    (d) unregistered barter group
19. A textile factory converts locally grown cotton into finished fabric. Identify its economic sector.
    (a) primary sector    (b) tertiary sector    (c) informal barter sector alone    (d) secondary sector
20. The main reason registration matters for a formal business is to _____.
    (a) guarantee immediate profitability    (b) avoid all future tax obligations    (c) establish recognised legal and compliance status    (d) remove the need for accounts
21. A small partnership expects disputes over responsibilities. The correct step is to _____.
    (a) rely on changing verbal promises    (b) agree written roles and profit-sharing before operating    (c) avoid keeping any business records    (d) delay every discussion until losses occur
22. A trader plans to pool funds with one trusted colleague without issuing company shares. Recommend a business form.
    (a) public limited company    (b) government corporation    (c) partnership    (d) multinational holding company
23. Why might an unplanned major hospital expense reduce a family’s ability to save?
    (a) every savings account becomes invalid    (b) income automatically doubles    (c) households stop facing scarcity    (d) more income must finance immediate consumption needs
24. Which example best distinguishes national saving from personal saving?
    (a) A student's pocket-money reserve alone    (b) Cash hidden in one shop drawer    (c) Private and public saving considered together    (d) One firm's unsold goods
25. A district population increases from 40,000 to 44,000. Calculate the growth rate.
    (a) 4%    (b) 40%    (c) 11%    (d) 10%
26. All these can hinder agricultural development EXCEPT _____.
    (a) inadequate credit    (b) poor rural roads    (c) reliable access to extension advice and markets    (d) limited modern storage
27. A census team fails to visit many remote households. Identify the probable error in the count.
    (a) perfect coverage    (b) double-entry accounting    (c) commodity price inflation alone    (d) undercounting
28. Farm produce is supplied to manufacturers as raw material. Identify the economic relationship illustrated.
    (a) that only one sector contributes to GDP    (b) interdependence of productive sectors    (c) that industry never needs transport    (d) that tertiary activities are unnecessary
29. Classify agriculture, manufacturing and banking in their correct sectoral order.
    (a) tertiary, primary and secondary sectors    (b) secondary, tertiary and primary sectors    (c) primary, tertiary and secondary sectors    (d) primary, secondary and tertiary sectors
30. ________ combines growing crops and raising farm animals within one enterprise.
    (a) mixed farming    (b) single-crop cultivation only    (c) wholesale trading    (d) factory assembly
31. An industrial estate suffers frequent power interruptions. Recommend the most relevant infrastructure priority.
    (a) ban all purchases of manufactured goods    (b) measure factory output less often    (c) raise electricity outages deliberately    (d) improve reliable industrial energy infrastructure
32. A household earns ₦150,000 and saves ₦30,000 monthly. Calculate the saving rate.
    (a) 20%    (b) 15%    (c) 25%    (d) 30%
33. Which statement about business forms is NOT correct?
    (a) Partners may combine specialist skills.    (b) Companies can raise funds through shares.    (c) Public corporations may serve public objectives.    (d) Every sole proprietor automatically has limited liability.
34. One enterprise raises fish while another cultivates maize. Identify their agricultural activities.
    (a) crop production and forestry    (b) forestry and livestock only    (c) aquaculture and crop production    (d) manufacturing and banking
35. As the proportion of young dependants rises, identify the public services likely to face greater demand.
    (a) education and household support services    (b) only retirement pensions    (c) a decline in all food needs    (d) the elimination of demand for clinics
36. The correct step after discovering duplicate census entries is to:
    (a) double the estimated population    (b) verify the records and reconcile duplications    (c) discard all data from the state    (d) assume duplicates never affect results
37. Agriculture supplies food, jobs and raw materials to Nigerian industries. Identify the broader economic contribution.
    (a) contribution to national development    (b) replacement of every tertiary service    (c) complete removal of imports    (d) guarantee of stable food prices
38. A family’s income rises from ₦100,000 to ₦125,000; spending rises from ₦90,000 to ₦105,000. Calculate the increase in saving.
    (a) ₦25,000    (b) ₦15,000    (c) ₦10,000    (d) ₦5,000
39. All these are tertiary-sector activities EXCEPT _____.
    (a) commercial banking    (b) processing timber into furniture    (c) transport services    (d) retail distribution
40. A sole proprietor wants to keep decision-making authority but struggles to raise expansion finance. Identify the trade-off.
    (a) a trade-off between control and access to resources    (b) that every business form has equal finance options    (c) that partnership removes all risks    (d) that ownership form never affects growth

SECTION B — THEORY (30 MARKS)
Instruction: Answer Question 1 and any other TWO questions. Each question carries 10 marks. Show all workings where calculations are required.

Question 1 (10 marks)
(a) A worker earns ₦180,000 and spends ₦144,000 in a month. Calculate saving and the saving rate. (4 marks)
(b) Explain three factors that may affect household saving and how a family could protect its target if income becomes irregular. (6 marks)

Question 2 (10 marks)
(a) Distinguish sole proprietorship and partnership in terms of ownership, finance, risk and control. (4 marks)
(b) Two people want to establish a printing business. Outline the key steps in selecting and formally registering a suitable form of ownership, and explain two reasons for writing an agreement. (6 marks)

Question 3 (10 marks)
(a) A town had 50,000 people and now has 55,000. Compute the percentage increase and distinguish growth from distribution. (4 marks)
(b) Explain three practical challenges of a national population census and propose a way to reduce each. (6 marks)

Question 4 (10 marks)
(a) Classify farming, food-processing and banking by economic sector, and explain the link between two sectors. (4 marks)
(b) A farming community suffers high post-harvest losses and poor roads. Recommend and justify three coordinated interventions that would strengthen agriculture’s contribution to Nigerian economic development. (6 marks)

Objective Marking Scheme
Question 1 – ✅ (a) Every household becomes poorer without exception.
Question 2 – ✅ (b) reduce post-harvest losses and improve sale timing
Question 3 – ✅ (b) Persistent pressure to spend above income
Question 4 – ✅ (d) fund equipment and manage working capital
Question 5 – ✅ (c) joint-stock company
Question 6 – ✅ (a) personal loss is generally limited to the investment committed
Question 7 – ✅ (b) population census
Question 8 – ✅ (b) compare their contributions and constraints
Question 9 – ✅ (c) a sustained increase in discretionary spending with unchanged income
Question 10 – ✅ (c) uncertainty in water supply
Question 11 – ✅ (b) saving
Question 12 – ✅ (a) available resources and productive capacity
Question 13 – ✅ (c) People giving incorrect ages or addresses
Question 14 – ✅ (d) compare actual income and spending with the plan and adjust
Question 15 – ✅ (a) Persistent transport bottlenecks
Question 16 – ✅ (b) Reduced delivery losses and lower travel costs
Question 17 – ✅ (d) match climate, soil, labour and capital to the enterprise
Question 18 – ✅ (a) limited company
Question 19 – ✅ (d) secondary sector
Question 20 – ✅ (c) establish recognised legal and compliance status
Question 21 – ✅ (b) agree written roles and profit-sharing before operating
Question 22 – ✅ (c) partnership
Question 23 – ✅ (d) more income must finance immediate consumption needs
Question 24 – ✅ (c) Private and public saving considered together
Question 25 – ✅ (d) 10%
Question 26 – ✅ (c) reliable access to extension advice and markets
Question 27 – ✅ (d) undercounting
Question 28 – ✅ (b) interdependence of productive sectors
Question 29 – ✅ (d) primary, secondary and tertiary sectors
Question 30 – ✅ (a) mixed farming
Question 31 – ✅ (d) improve reliable industrial energy infrastructure
Question 32 – ✅ (a) 20%
Question 33 – ✅ (d) Every sole proprietor automatically has limited liability.
Question 34 – ✅ (c) aquaculture and crop production
Question 35 – ✅ (a) education and household support services
Question 36 – ✅ (b) verify the records and reconcile duplications
Question 37 – ✅ (a) contribution to national development
Question 38 – ✅ (c) ₦10,000
Question 39 – ✅ (b) processing timber into furniture
Question 40 – ✅ (a) a trade-off between control and access to resources

Theory Marking Scheme

Question 1:
(a) Saving ₦36,000 (2); ₦36,000/₦180,000 ×100=20% (2). (4 marks)
(b) Three relevant influences such as income, dependants, interest, inflation, emergencies (1 each); realistic adjustments: emergency provision, spending priorities, regular monitoring (1 each). (6 marks)

Question 2:
(a) Four comparisons at one mark each: one vs partners; personal vs pooled capital; liability exposure; single vs shared management. (4 marks)
(b) Assess chosen form and legal requirements (2); verify name and complete appropriate registration (2); reasons such as profit sharing and dispute prevention (1 each). (6 marks)

Question 3:
(a) Increase 5,000/50,000×100 =10% (2); growth concerns changes in number, distribution is spatial pattern (2). (4 marks)
(b) Any three matched challenge–mitigation pairs, such as remote access with mapping, deliberate misreporting with verification, double counting with unique household enumeration (2 each). (6 marks)

Question 4:
(a) Primary: farming (1); secondary: processing (1); tertiary: banking (1); reasonable intersectoral link such as farm input supplying factory (1). (4 marks)
(b) Appropriate measure and explanation for each: improved storage (2); transport/access roads (2); extension/market information/finance (2). (6 marks)
Accept logically valid equivalents within the taught curriculum. Credit correct workings and justifications; do not award the same point twice.