SSCE (WAEC and NECO) Practice Test – Economics

An arrangement in which the debts of a company can only be paid from its own assets implies

A. unlimited liability.    B. transferred liability.    C. limited liability.    D. capital liability.

In order to develop the banking habit of rural dwellers, the traditional money lenders should be

A. proscribed.    B. legalized.    C. subsidized.    D. heavily taxed.

Which of the following is the main outcome of a trade union’s interference with the wage rate? Wages are

A. lowered but more employment opportunities are created.
B. lowered but employment level remains unchanged.
C. increased and employment levels are unchanged.
D. increased but employment levels are reduced.

Points outside a production possibility curve indicate

A. unattainable production levels.
B. attainable production levels.
C. inefficient, but attainable production levels.
D. optimum production levels.

The difference between birth rate and death rate is known as

A. demographic transition.    B. natural growth rate.    C. migration rate.    D. fertility rate.

In open market operations, what the Central Bank sells or buys are

A. shares.    B. debentures.    C. securities.    D. equities.

Which of the following will not .retard economic development in West Africa?

A. Dependence on imports
B. Population control
C. High level of illiteracy
D. Low level of savings

The value of money is affected by the

A. speculative motive.
B. price level.
C. precautionary motive.
D. intervention of development banks

Which of the following can be used to calculate the price elasticity of demand?

A. (Percentage change in quantity demanded)/(Percentage change in price)
B. (Percentage change in price)/(Percentage change in quantity demanded)
C. (Percentage change in quantity demanded)/(percentage change in income)
D. (Percentage change in income)/(percentage change in quantity demanded)

In the long-run, factors of production are considered to be

A. at maximum.    B. fixed.    C. variable.    D. increasing.

The difference between the number of immigrants and emigrants is

A. natural growth rate.    B. natural increase.    C. net migration.    D. census.

General rise in the price level induced by increased price of inputs is referred to as

A. run-away inflation.
B. cost-push inflation.
C. demand-pull inflation.
D. imported inflation.

Exchange control is a weapon used in regulating

A. barter trade.    B. stock exchange.    C. foreign trade.    D. international trade.

Which of the following will enhance productivity in an economy?

A. The use of obsolete capital.
B. Technological change.
C. Expansion of land under cultivation.
D. An increase in the labour force.

Goods which have to be paid for are known as

A. physical goods.    B. economic goods.    C. free goods.    D. intangible goods.

Which of the following is a function of a retailer?

A. Banking services    B. Hoarding services    C. Storage services    D. Sales services

The following are advantages of sole proprietorship except

A. quick and easy decision-making.
B. keeping its business affairs private.
C. assurance of raising huge capital for expansion.
D. high level of commitment.

Gold, diamond, iron ore and limestone are collectively referred to as

A. human resources.    B. mineral resources.    C. artificial resources.    D. forest resources.

Visible balance is also known as

A. terms of trade.    B. balance of payments.    C. balance of trade.    D. capital balance.

If a commodity has a high marginal utility, its market price will be

A. stable.    B. high.    C. zero.    D. constant.