PES SS 3 Economics (Objective) Mock 2 Exam 2025\2026
  • 1. Points within a Production Possibilities Curve (PPC) indicate ____________.
A) optimum production levels
B) attainable and efficient production levels
C) attainable but inefficient production levels
D) unattainable production levels
  • 2. Which of the following is not a feature of labour?
A) Its efficiency depends on its size
B) Its reward is wages or salaries
C) It is highly mobile
D) It is an active factor
  • 3. The pursuit of private profits is a feature of ______________
A) Statutory economic
B) Command economic
C) Capitalist economic
D) Socialist economic
  • 4. A major feature of the socialist economic system is ______________
A) Freedom of choice for consumers
B) Private ownership of productive input
C) Determination of Price by market forces
D) Setting of production targets by public authorities
  • 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) 60°
B) 16.6°
C) 150°
D) 300°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Demand for the product
B) Price of another product
C) Income of the buyer
D) Price of the product
  • 7. When total revenue increases as price falls, the coefficient of price elasticity of demand is  ______________
A) Less then one
B) 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) 66.7%
B) 50.0%
C) 30.0%
D) 33.3%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Normal goods are involved
C) Size of the production change
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 inelastic
C) perfectly inelastic
D) fairly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) diminishing marginal utility
B) consumer's choice
C) diminishing returns to scale
D) increasing returns to scale
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) foreign companies.
B) Small scale producers
C) Consumers
D) Government
  • 13. Which of the following best explains diseconomies of scale? Increase in output causes the _______________.
A) firm to be de- stabilized
B) marginal revenue to fall
C) marginal cost to fall
D) average cost to rise
  • 14. In the short-run, a firm can increase output by ______________
A) increasing the quantity of raw materials
B) changing its organizational structure
C) increasing the size of its machines
D) purchasing more equipment
  • 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) $10
D) $8
  • 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) marginal revenue is greater than marginal cost at all levels
D) more firms can enter the industry due to attractive prof its
  • 17. The government policy that encourages public corporations to operate profitably is ____________.
A) indigenization
B) nationalization
C) liberalization
D) commercialization
  • 18. Separation of ownership from control is more pronounced in a __________
A) constimer co- operative society
B) partnership
C) sole proprietorship
D) joint-stock company
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Supermarket
B) Wholesalers
C) Department store
D) Retailers
  • 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) Stock exchange
C) central banks
D) merchant banks
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) net migration.
B) immigration rate.
C) death rate
D) fertility 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) the presence of many extension workers
C) the use of simple traditional implements
D) laziness on the part of farmers
  • 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) Governments will no longer be involved in agriculture
D) More jobs will be available for farm labourers
  • 25. National income estimates will be understated as a result of the activities of ___________
A) housekeepers
B) laundry women
C) subsistence farmers
D) musicians
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) unit of account
B) relative scarcity
C) store of value
D) standard for deferred payment
  • 27. Supply of money is best defined as the __________.
A) money in circulation plus bank deposits
B) amount of money spent on consumer goods
C) money given out as loans to members of the public
D) amount of currency printed annually by the government.
  • 28. Capital market operators deal in the ____________.
A) supply of and demand for long term loans for investment
B) supply of and demand for short term loans only
C) sales and purchases of capital equipment
D) sales and purchases of treasury bills
  • 29. A commodity with perfectly inelastic demand has the burden of tax borne by __________.
A) both the sellers and the buyers
B) the government alone
C) both the buyers and the government
D) the buyers alone
  • 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) Cocoa
C) Rubber
D) Coal
  • 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) 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) Composite
B) Abnormal supply
C) Complementary supply
D) Joint supply
  • 35. Industries are sometimes located in areas which are not profitable so as to ____________ .
A) Encourage rural urban migration
B) Be able to reap internal economies of scake
C) Be about external economies of scale
D) Be able to even out development
  • 36. The study of economics is mainly concerned with how to
A) produce all the goods needed by everyone
B) rank individuals' wants given the abundant resources
C) make choice when resources are inadequate
D) satisfy every member of all societies
  • 37. Resources are pooled for the mutual benefit of its members mainly in a
A) cooperative society
B) joint stock company
C) private company
D) partnership
  • 38. The total fixed cost curve is
A) upward sloping
B) horizontal
C) vertical
D) downward sloping
  • 39. A small scale firm located within an industrial estate will enjoy
A) technological economies of scale
B) external economies of scale
C) financial economies of scale
D) government protection and funding
  • 40. When job vacancies are publicized, the government is mainly trying to solve the problem of
A) frictional unemployment
B) cyclical unemployment
C) technological unemployment
D) residual unemployment
  • 41. An indication that there is inflation in a country is that
A) people prefer to lend than to borrow
B) the same amount of money buys lower quantity of goods
C) there are too many goods in circulation
D) there is a decrease in the demand for goods and services
  • 42. An example of government's recurrent expenditure is
A) purchase of new vehicles
B) the cost of building a school
C) electrification projects in rural areas
D) paying salaries of workers
  • 43. A fall in the price of a normal commodity which has elastic demand will result in
A) an increase in revenue
B) a fall in quantity demanded
C) a decrease in revenue
D) a fall in demand
  • 44. The dependency ratio of a country is the
A) total active population who depend on government for survival
B) the children and aged who rely on the active population for support
C) people who are cared for by their extended families
D) number of children who depend on their parents for survival
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) turn negative
B) decrease
C) remain constant
D) increase
  • 46. Consumers have access to a variety of goods through the activities of the
A) mass media
B) wholesalers
C) advertising agencies
D) retailers
  • 47. The Malthusian theory of population is best illustrated when
A) both population and food supply increase at the same rate
B) food supply increases much faster than population growth
C) population increases much faster than food supply
D) the size of the population and available resources are equal
  • 48. The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is
A) $40m
B) $30m
C) $500m
D) $60m
  • 49. The rate of growth of population is
A) the difference between birth rate and death rate
B) birth rate less death rate plus net migration
C) the number of immigrants plus number of births
D) initial population plus number of births and net migration
  • 50. One of the factor that may not promote industrial development is
A) setting up industrial estates with modern amenities
B) granting old firms tax exemptions
C) granting capital to firms at reasonable interest rates
D) local firms entering into partnerships with foreign firms
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) labour intensive method is mostly adopted
B) abnormal profits are made
C) they practice mechanized system of farming
D) wages in the sector is high
  • 52. Taxes levied on goods and services by government are called
A) corporate taxes
B) direct taxes
C) poll taxes
D) indirect 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 rise
B) supply of kerosene will remain unchanged
C) supply of kerosene will fall
D) cost of crude oil production has increased
  • 55. The fixing of maximum prices by government is mainly on
A) inferior goods
B) selected essential 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) 8.5
B) 8
C) 7
D) 7.5
  • 57. Tariffs, quotas and embargoes are examples of
A) trade restriction policies
B) monetary policies
C) fiscal policies
D) foreign exchange policies
  • 58. A country is described as developing if

    A.
    B.
    C.
    D.
A) there is low labour supply
B) the population is decreasing
C) the contribution of tertiary sector to national income is high
D) the income per head is low
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Poor transportation and communication
B) Language barriers
C) Inadequate supply of labour
D) Production of the same commodities
  • 60. An increase in a country's production capacity usually leads to economic
A) development
B) efficiency
C) growth
D) stability
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