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) Its efficiency depends on its size
B) It is an active factor
C) Its reward is wages or salaries
D) It is highly mobile
  • 3. The pursuit of private profits is a feature of ______________
A) Capitalist economic
B) Command economic
C) Statutory economic
D) Socialist economic
  • 4. A major feature of the socialist economic system is ______________
A) Determination of Price by market forces
B) Setting of production targets by public authorities
C) Private ownership of productive input
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) 300°
B) 60°
C) 150°
D) 16.6°
  • 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) One
B) Greater then one
C) Zero
D) Less then one
  • 8. If the quantity demanded of rice de- creased from 150 bags to 100 bags, the percentage change in quantity demanded is ____________.
A) 33.3%
B) 66.7%
C) 30.0%
D) 50.0%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Size of the production change
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 inelastic
B) fairly elastic
C) fairly inelastic
D) Perfectly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) consumer's choice
B) diminishing returns to scale
C) increasing returns to scale
D) diminishing marginal utility
  • 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) 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) purchasing more equipment
B) increasing the quantity of raw materials
C) changing its organizational structure
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) $8
C) $6
D) $10
  • 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) liberalization
C) indigenization
D) nationalization
  • 18. Separation of ownership from control is more pronounced in a __________
A) joint-stock company
B) partnership
C) constimer co- operative society
D) sole proprietorship
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Department store
B) Supermarket
C) Retailers
D) Wholesalers
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) unemployment benefit rises
B) welfare packages improve
C) there are less monetary benefits
D) holiday entitlement is cut
  • 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) immigration rate.
B) net migration.
C) fertility rate.
D) death 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 law of increasing returns to scale
D) the use of simple traditional implements
  • 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) Governments will no longer be involved in agriculture
C) Labour intensive method of farming will still be dominant
D) More jobs will be available for farm labourers
  • 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) store of value
B) standard for deferred payment
C) unit of account
D) relative scarcity
  • 27. Supply of money is best defined as the __________.
A) money given out as loans to members of the public
B) money in circulation plus bank deposits
C) amount of money spent on consumer goods
D) amount of currency printed annually by the government.
  • 28. Capital market operators deal in the ____________.
A) supply of and demand for short term loans only
B) supply of and demand for long term loans for investment
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) the government alone
B) both the sellers and the buyers
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) Cocoa
B) Oil palm
C) Coal
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) Competitive demand
C) Derived demand
D) Complementary demand
  • 33. If the government stops subsidy on cocoa production, the supply curve of coca will ____________.
A) Remain unchanged
B) Shift to the left
C) Shift to the right
D) Become vertical
  • 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) Joint supply
C) Abnormal supply
D) Composite
  • 35. Industries are sometimes located in areas which are not profitable so as to ____________ .
A) Be able to reap internal economies of scake
B) Be about external economies of scale
C) Encourage rural urban migration
D) Be able to even out development
  • 36. The study of economics is mainly concerned with how to
A) satisfy every member of all societies
B) rank individuals' wants given the abundant resources
C) produce all the goods needed by everyone
D) make choice when resources are inadequate
  • 37. Resources are pooled for the mutual benefit of its members mainly in a
A) joint stock company
B) partnership
C) private company
D) cooperative society
  • 38. The total fixed cost curve is
A) downward sloping
B) horizontal
C) vertical
D) upward sloping
  • 39. A small scale firm located within an industrial estate will enjoy
A) government protection and funding
B) technological economies of scale
C) financial economies of scale
D) external economies of scale
  • 40. When job vacancies are publicized, the government is mainly trying to solve the problem of
A) residual unemployment
B) frictional unemployment
C) cyclical unemployment
D) technological 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) purchase of new vehicles
B) the cost of building a school
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 decrease in revenue
B) an increase in revenue
C) a fall in quantity demanded
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) number of children who depend on their parents for survival
D) people who are cared for by their extended families
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) remain constant
B) turn negative
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) 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) $60m
C) $40m
D) $500m
  • 49. The rate of growth of population is
A) initial population plus number of births and net migration
B) the number of immigrants plus number of births
C) the difference between birth rate and death rate
D) birth rate less death rate plus net migration
  • 50. One of the factor that may not promote industrial development is
A) granting old firms tax exemptions
B) granting capital to firms at reasonable interest rates
C) setting up industrial estates with modern amenities
D) local firms entering into partnerships with foreign firms
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) they practice mechanized system of farming
B) wages in the sector is high
C) labour intensive method is mostly adopted
D) abnormal profits are made
  • 52. Taxes levied on goods and services by government are called
A) corporate taxes
B) poll taxes
C) direct taxes
D) indirect taxes
  • 53. The most liquid asset among the following is
A) bonds
B) cheque
C) cash
D) shares
  • 54. Petrol and Kerosene are jointly obtained from crude oil. If the supply of petrol increases, the
A) supply of kerosene will fall
B) supply of kerosene will remain unchanged
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) luxury 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) 8
B) 7
C) 7.5
D) 8.5
  • 57. Tariffs, quotas and embargoes are examples of
A) fiscal policies
B) trade restriction policies
C) foreign exchange policies
D) monetary policies
  • 58. A country is described as developing if
A) there is low labour supply
B) the population is decreasing
C) the income per head is low
D) the contribution of tertiary sector to national income is high
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Inadequate supply of labour
B) Language barriers
C) Production of the same commodities
D) Poor transportation and communication
  • 60. An increase in a country's production capacity usually leads to economic
A) stability
B) growth
C) development
D) efficiency
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