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) optimum production levels
D) unattainable production levels
  • 2. Which of the following is not a feature of labour?
A) It is an active factor
B) Its efficiency depends on its size
C) It is highly mobile
D) Its reward is wages or salaries
  • 3. The pursuit of private profits is a feature of ______________
A) Command economic
B) Socialist economic
C) Statutory economic
D) Capitalist economic
  • 4. A major feature of the socialist economic system is ______________
A) Setting of production targets by public authorities
B) Freedom of choice for consumers
C) Determination of Price by market forces
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) 300°
B) 150°
C) 16.6°
D) 60°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Demand for the product
B) Income of the buyer
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) Greater then one
B) Less then one
C) 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) Size of the production change
B) Normal goods are involved
C) Rare commodities
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 inelastic
B) fairly elastic
C) fairly inelastic
D) Perfectly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) diminishing returns to scale
B) increasing returns to scale
C) diminishing marginal utility
D) consumer's choice
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) Consumers
B) foreign companies.
C) Small scale producers
D) Government
  • 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) increasing the quantity of raw materials
B) increasing the size of its machines
C) purchasing more equipment
D) changing its organizational structure
  • 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) $10
B) $6
C) $4
D) $8
  • 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) profits are not enough to repay traders' loans
C) new firms can not enter the market due to copyright laws
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) commercialization
C) liberalization
D) nationalization
  • 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) Department store
C) Wholesalers
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) holiday entitlement is cut
D) unemployment benefit rises
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) Stock exchange
B) development banks
C) merchant banks
D) central banks
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) death rate
B) net migration.
C) immigration 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) More jobs will be available for farm labourers
C) Labour intensive method of farming will still be dominant
D) Governments will no longer be involved in agriculture
  • 25. National income estimates will be understated as a result of the activities of ___________
A) subsistence farmers
B) housekeepers
C) laundry women
D) musicians
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) unit of account
B) standard for deferred payment
C) relative scarcity
D) store of value
  • 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) sales and purchases of capital equipment
C) sales and purchases of treasury bills
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 importation of consumer goods
B) high rate of investment
C) low per capita income
D) high rate of household savings
  • 31. Which of the following is a non-renewable natural resources?
A) Coal
B) Oil palm
C) Rubber
D) Cocoa
  • 32. The demand for a factor input as a result of the demand for it output is known as ____________
A) Complementary demand
B) Market demand
C) Derived demand
D) Competitive demand
  • 33. If the government stops subsidy on cocoa production, the supply curve of coca will ____________.
A) Shift to the right
B) Remain unchanged
C) Become vertical
D) Shift to the left
  • 34. The supply of light could be met using a candle, lantern and gas lamp. This is an example of a____________.
A) Composite
B) Complementary supply
C) Abnormal supply
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) Encourage rural urban migration
C) Be able to even out development
D) Be able to reap internal economies of scake
  • 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) private company
B) cooperative society
C) partnership
D) joint stock company
  • 38. The total fixed cost curve is
A) upward sloping
B) vertical
C) horizontal
D) downward sloping
  • 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) residual unemployment
B) technological unemployment
C) cyclical unemployment
D) frictional unemployment
  • 41. An indication that there is inflation in a country is that
A) people prefer to lend than to borrow
B) there are too many goods in circulation
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) electrification projects in rural areas
B) purchase of new vehicles
C) paying salaries of workers
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) an increase in revenue
B) a decrease in revenue
C) a fall in quantity demanded
D) a fall in demand
  • 44. The dependency ratio of a country is the
A) people who are cared for by their extended families
B) the children and aged who rely on the active population for support
C) total active population who depend on government for survival
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) remain constant
B) decrease
C) increase
D) turn negative
  • 46. Consumers have access to a variety of goods through the activities of the
A) retailers
B) mass media
C) advertising agencies
D) wholesalers
  • 47. The Malthusian theory of population is best illustrated when
A) population increases much faster than food supply
B) food supply increases much faster than population growth
C) the size of the population and available resources are equal
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) $30m
B) $500m
C) $40m
D) $60m
  • 49. The rate of growth of population is
A) the number of immigrants plus number of births
B) the difference between birth rate and death rate
C) initial population plus number of births and net migration
D) birth rate less death rate plus net migration
  • 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) labour intensive method is mostly adopted
B) abnormal profits are made
C) wages in the sector is high
D) they practice mechanized system of farming
  • 52. Taxes levied on goods and services by government are called
A) indirect taxes
B) direct taxes
C) poll taxes
D) corporate 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) cost of crude oil production has increased
B) supply of kerosene will remain unchanged
C) supply of kerosene will rise
D) supply of kerosene will fall
  • 55. The fixing of maximum prices by government is mainly on
A) inferior goods
B) luxury goods
C) imported capital goods
D) selected essential 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) foreign exchange policies
B) trade restriction policies
C) monetary policies
D) fiscal policies
  • 58. A country is described as developing if
A) the population is decreasing
B) the contribution of tertiary sector to national income is high
C) there is low labour supply
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) Production of the same commodities
B) Language barriers
C) Poor transportation and communication
D) Inadequate supply of labour
  • 60. An increase in a country's production capacity usually leads to economic
A) stability
B) growth
C) efficiency
D) development
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