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