DEEPER LIFE HIGH SCHOOL

THIRD TERM EXAMINATION 2015/2016 ACADEMIC SESSION

SUBJECT: ECONOMICS CLASS: SS1
MARKING GUIDE

1. A 2. B 3.B 4. C 5. C 6. C 7. A 8. C 9.B 10.B

11.C 12.D 13.A 14.B 15.A 16.C 17.C 18.A 19.C 20.A

21.C 22.A 23.D 24.D 25.A 26.B 27.D 28.A 29.A 30.D

31.A 32.B 33.A 34.B 35.D 36.C 37.B 38.C 39.C 40.A

41.D 42.B 43.A 44.C 45.C 46.A 47.C 48.B 49.C 50.A

51.D 52.B 53.D 54.D 55.A 56.B 57.C 58.D 59.D 60.D

SECTION B

a. Multiple the import and exports of Nigeria for the year 1991 – 1995
( 8 marks for proper drawing and labelling)

b. i. 1994 ( 1 mark)

ii. 8145 (1 mark)

2. a. Birth rate – Death rate = Natural growth rate (1 mk)

L= 45-32 =13 (1 mk)

P =39-12.50 = 26.50 (1 mk)

Q= 26-22= 4 (1 mk)

R= 22.50+ 4.50 = 27 (1 mk)

S= 26.50 – 22.50 =4 (1 mk)

T = 20.50 – 3 = 17.50 (1 mk)

(b) Outline any three reasons for changes in the birth rate.
(i) Early or late marriages

(ii) Improved medical facilities

(iii) Traditional or religious beliefs

(iv) Population control campaign

(v) Ratio of females to males. (3 mks for any three)

SECTION C

3. a. Define chain of distribution

The term distributive trade or chain of distribution simply refers to the various stages
which finished products pass before reaching the final consumers

( 2 marks for correct definition)

b. Highlight three processes of distribution

 Merchandising
 Packaging
 Storage
 Transportation
 Advertising
(1 mark for any three correct answers = 3marks)

c. State five roles of cooperative societies in the proper distribution of goods in Nigeria.

 They bring goods nearer to the consumers.

 They sell essential goods at affordable prices
 They offer credit facilities to consumers
 Helping in stabilizing prices of goods
 They help in fighting hoarding.
 They advise both consumers and producers.
 They help in controlling inflation.
 They help in completing the process of manufacturing or production of certain
goods ( 1 mark for any five correct answers = 5marks)
4. a. Explain three functions of Money

1. A medium of exchange: With money, you no longer need to look for

somebody who has what you want and who at the same time wants what you
want. Instead, money is used as a means of payment for goods and services
and for the settlement of debt.
2. It measures values of goods and service : Money is therefore a parameter for
determining the worth of gods and services
3. A store of values: Money is now used in storing wealth, unless there is
inflation, money stored or saved retains its values for many years.
4. A standard of Deferred Payment : As a result of the durability of money, one
can buy some commodities now and pay in future
5. A Unit of Account: Money makes accounting possible because the worth of
goods and services is measured in money.
6. Money commands Variety: The existence of money encourages large quantity
and variety purchases of goods and services
7. Money encourages Installment Payments: This is possible because money is
divisible.
8. Money encourages division of labor: With the existence of money, people tend
to concentrate on certain occupations and aspects of production processes,
leaving other aspects to other people, with the hope of buying the commodities
with money they will earn as the reward for their services.
9. Encouragement of lending and borrowing: The existence of money gave rise to
bank loans and overdrafts and other forms of lending and borrowing.

( 2 marks for each explained point = 6 marks)

b. Discuss any two of the following terms

i. token money

ii. paper money

iii. bank money

iv. foreign money

v. commodity money
(1) Token Money: This is money whose intrinsic worth is less than its nominal or
face value. That is, its value as a piece of metal or note is not identical with its
value as piece of money. Britain’s silver coins were replaced with coins of
curpo-nickel because their value rose above their face value or purchasing power
value as a result of high rise in the value of silver during the two world wars. As
a result of the rise in value of silver, there was danger that the silver coins might
be illegally melted.

(2) Paper Money: As the name indicates, it is in form of paper note which originated
from receipts the goldsmiths issued to people who kept gold and other valuables
with them.
(3) Bank money: This is the money one keeps in one’s bank account for safe-
keeping, also called bank deposit which can be given back to the owner on
demand.
(4) Foreign money: It is the money of other countries of the world which serves as
money in the foreign exchange market. Some of the most popular foreign
exchange are : Dollar, Pounds sterling, Deutschmark, etc., and they enable a
citizen of a country to buy items from other countries where he is resident at the
time.
(5) Commodity Money: Different commodities were used in different parts of the
world as medium of exchange and they are presently called commodity money.
These have two values as money and as commodities. These commodities
include: cowries, gold, diamond, silver, shark teeth, cows, manilas etc., and
presently some of them have gone into oblivion as media of exchange.

( 2 marks for any point explained = 4 marks)