PES SS 3 Economics (Objective) Mock 3 Exam 2025/2026
  • 1. Points within a Production Possibilities Curve (PPC) indicate ____________.
A) attainable but inefficient production levels
B) attainable and efficient production levels
C) unattainable production levels
D) optimum production levels
  • 2. Which of the following is not a feature of labour?
A) It is highly mobile
B) Its efficiency depends on its size
C) It is an active factor
D) Its reward is wages or salaries
  • 3. The pursuit of private profits is a feature of ______________
A) Command economic
B) Capitalist economic
C) Statutory economic
D) Socialist economic
  • 4. A major feature of the socialist economic system is ______________
A) Freedom of choice for consumers
B) Determination of Price by market forces
C) Setting of production targets by public authorities
D) Private ownership of productive input
  • 5. If the budget on education is $50 m out of an annual national budget of $300 m. The sector of a pie chart representing education is _________.
A) 16.6°
B) 300°
C) 150°
D) 60°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Price of the product
B) Demand for the product
C) Price of another product
D) Income of the buyer
  • 7. When total revenue increases as price falls, the coefficient of price elasticity of demand is  ______________
A) One
B) Less then one
C) Greater then one
D) Zero
  • 8. If the quantity demanded of rice de- creased from 150 bags to 100 bags, the percentage change in quantity demanded is ____________.
A) 30.0%
B) 66.7%
C) 33.3%
D) 50.0%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Incomes of consumers increase
C) Size of the production change
D) Normal goods are involved
  • 10. If the coefficient of price elasticity of supply of a commodity is 0.8, then supply is ____________
A) fairly elastic
B) perfectly inelastic
C) fairly inelastic
D) Perfectly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) diminishing marginal utility
B) diminishing returns to scale
C) increasing returns to scale
D) consumer's choice
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) Government
B) Consumers
C) Small scale producers
D) foreign companies.
  • 13. Which of the following best explains diseconomies of scale? Increase in output causes the _______________.
A) average cost to rise
B) marginal revenue to fall
C) firm to be de- stabilized
D) marginal cost to fall
  • 14. In the short-run, a firm can increase output by ______________
A) purchasing more equipment
B) changing its organizational structure
C) increasing the quantity of raw materials
D) increasing the size of its machines
  • 15. 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) $6
B) $8
C) $10
D) $4
  • 16. Firms in perfect competition break even in the long-run because of __________
A) more firms can enter the industry due to attractive prof its
B) marginal revenue is greater than marginal cost at all levels
C) new firms can not enter the market due to copyright laws
D) profits are not enough to repay traders' loans
  • 17. The government policy that encourages public corporations to operate profitably is ____________.
A) commercialization
B) nationalization
C) liberalization
D) indigenization
  • 18. Separation of ownership from control is more pronounced in a __________
A) partnership
B) joint-stock company
C) sole proprietorship
D) constimer co- operative society
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Supermarket
B) Wholesalers
C) Retailers
D) Department store
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) there are less monetary benefits
B) welfare packages improve
C) unemployment benefit rises
D) holiday entitlement is cut
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) development banks
B) central banks
C) Stock exchange
D) merchant banks
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) net migration.
B) fertility rate.
C) death rate
D) immigration rate.
  • 23. The low productivity per worker in agriculture experienced in West African countries is due to _____________ .
A) the law of increasing returns to scale
B) laziness on the part of farmers
C) the use of simple traditional implements
D) the presence of many extension workers
  • 24. What will be the likely effect if agriculture is fully mechanized in West Africa?
A) More jobs will be available for farm labourers
B) Governments will no longer be involved in agriculture
C) Labour intensive method of farming will still be dominant
D) Less labour will be required on the farm
  • 25. National income estimates will be understated as a result of the activities of ___________
A) musicians
B) laundry women
C) housekeepers
D) subsistence farmers
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) standard for deferred payment
B) unit of account
C) relative scarcity
D) store of value
  • 27. Supply of money is best defined as the __________.
A) money given out as loans to members of the public
B) amount of money spent on consumer goods
C) money in circulation plus bank deposits
D) amount of currency printed annually by the government.
  • 28. Capital market operators deal in the ____________.
A) sales and purchases of treasury bills
B) supply of and demand for long term loans for investment
C) sales and purchases of capital equipment
D) supply of and demand for short term loans only
  • 29. 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 buyers and the government
  • 30. One indicator of the low level of cap ital formation in developing countries is ___________ .
A) low importation of consumer goods
B) low per capita income
C) high rate of investment
D) high rate of household savings
  • 31. Which of the following is a non-renewable natural resources?
A) Oil palm
B) Rubber
C) Coal
D) Cocoa
  • 32. The demand for a factor input as a result of the demand for it output is known as ____________
A) Competitive demand
B) Derived demand
C) Market demand
D) Complementary demand
  • 33. If the government stops subsidy on cocoa production, the supply curve of coca will ____________.
A) Become vertical
B) Shift to the left
C) Remain unchanged
D) Shift to the right
  • 34. The supply of light could be met using a candle, lantern and gas lamp. This is an example of a____________.
A) Complementary supply
B) Composite
C) Abnormal supply
D) Joint supply
  • 35. Industries are sometimes located in areas which are not profitable so as to ____________ .
A) Be able to even out development
B) Be about external economies of scale
C) Be able to reap internal economies of scake
D) Encourage rural urban migration
  • 36. The study of economics is mainly concerned with how to
A) rank individuals' wants given the abundant resources
B) satisfy every member of all societies
C) make choice when resources are inadequate
D) produce all the goods needed by everyone
  • 37. Resources are pooled for the mutual benefit of its members mainly in a
A) partnership
B) cooperative society
C) private company
D) joint stock company
  • 38. The total fixed cost curve is
A) horizontal
B) upward sloping
C) downward sloping
D) vertical
  • 39. A small scale firm located within an industrial estate will enjoy
A) government protection and funding
B) financial economies of scale
C) external economies of scale
D) technological economies of scale
  • 40. When job vacancies are publicized, the government is mainly trying to solve the problem of
A) technological unemployment
B) residual unemployment
C) frictional unemployment
D) cyclical unemployment
  • 41. An indication that there is inflation in a country is that
A) there are too many goods in circulation
B) people prefer to lend than to borrow
C) there is a decrease in the demand for goods and services
D) the same amount of money buys lower quantity of goods
  • 42. An example of government's recurrent expenditure is
A) the cost of building a school
B) purchase of new vehicles
C) paying salaries of workers
D) electrification projects in rural areas
  • 43. A fall in the price of a normal commodity which has elastic demand will result in
A) a fall in demand
B) a decrease in revenue
C) an increase in revenue
D) a fall in quantity demanded
  • 44. The dependency ratio of a country is the
A) the children and aged who rely on the active population for support
B) people who are cared for by their extended families
C) number of children who depend on their parents for survival
D) total active population who depend on government for survival
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) turn negative
B) remain constant
C) decrease
D) increase
  • 46. Consumers have access to a variety of goods through the activities of the
A) mass media
B) wholesalers
C) retailers
D) advertising agencies
  • 47. The Malthusian theory of population is best illustrated when
A) population increases much faster than food supply
B) the size of the population and available resources are equal
C) food supply increases much faster than population growth
D) both population and food supply increase at the same rate
  • 48. The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is
A) $500m
B) $60m
C) $40m
D) $30m
  • 49. The rate of growth of population is
A) the number of immigrants plus number of births
B) birth rate less death rate plus net migration
C) the difference between birth rate and death rate
D) initial population plus number of births and net migration
  • 50. One of the factor that may not promote industrial development is
A) local firms entering into partnerships with foreign firms
B) granting old firms tax exemptions
C) setting up industrial estates with modern amenities
D) granting capital to firms at reasonable interest rates
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) labour intensive method is mostly adopted
B) wages in the sector is high
C) abnormal profits are made
D) they practice mechanized system of farming
  • 52. Taxes levied on goods and services by government are called
A) poll taxes
B) corporate taxes
C) indirect taxes
D) direct taxes
  • 53. The most liquid asset among the following is
A) cheque
B) bonds
C) shares
D) cash
  • 54. Petrol and Kerosene are jointly obtained from crude oil. If the supply of petrol increases, the
A) supply of kerosene will fall
B) cost of crude oil production has increased
C) supply of kerosene will rise
D) supply of kerosene will remain unchanged
  • 55. The fixing of maximum prices by government is mainly on
A) luxury goods
B) inferior goods
C) selected essential goods
D) imported capital goods
  • 56. The marks obtained by 9 students in a class test are recorded below: 9, 8, 7, 5,7, 6, 8, 9 and 7. What is the median mark?
A) 7
B) 8
C) 8.5
D) 7.5
  • 57. Tariffs, quotas and embargoes are examples of
A) monetary policies
B) fiscal policies
C) foreign exchange policies
D) trade restriction policies
  • 58. A country is described as developing if
A) there is low labour supply
B) the contribution of tertiary sector to national income is high
C) the income per head is low
D) the population is decreasing
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Inadequate supply of labour
B) Production of the same commodities
C) Poor transportation and communication
D) Language barriers
  • 60. An increase in a country's production capacity usually leads to economic
A) efficiency
B) stability
C) growth
D) development
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