PES Firebrand Class Economics Mock 1
  • 1. 1. Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be
A) Determined later by government
B) Greater than equilibrium supply
C) None of these
D) . The same as equilibrium supply
E) Less than the equilibrium supply
  • 2. 2. Price control cannot work in Nigeria because
A) the population is too large
B) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
C) control cannot work under military rule
D)  too many things are produced in the country
  • 3. 3. The effect of the demand for product A caused by a change in the price of a product B is called?
A) cross-elasticity of demand
B) Joint demand
C) composite demand
D)  competitive demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) capital
B) wants
C) scarcity
D) resources
  • 5. 5. Land as a factor of production is made useful through the 
A) application of fertilizer
B) use of machines
C) acts of nature
D) application of human effort
  • 6. 6. In a free market economy, resources are allocated through the 
A) government department
B) trade union
C)  state planning committee.
D) price mechanisms
  • 7. 7. A consumer is in equilibrium when 
A) he has consumed all he wants
B) he maximizes his satisfaction from spending his income
C) his market Supply is equal to his market demand
D) the market is also in equilibrium  
  • 8. 8. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) composite supply
B) joint supply
C) market Supply
D) competitive supply
  • 9. 9. If an increase in the supply of beef increased the supply of hides, then beef and hides are in
A) joint supply
B) competitive supply
C) composite supply
D) joint demand
  • 10. 10. An increase in supply means that
A) more is sold at the same price
B)  more is sold at different prices
C) there is a movement along the supply curve 
D) there is a leftward shift of the supply curve
  • 11. 11. The study of economics is Important to every society because it______ 
A) Enables individuals to satisfy all their wants
B) Restores equilibrium between producers and consumers
C) Helps producers to know what to produce
D) . Helps in the utilization of scarce resources
  • 12. 12. A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
A) Dress and Jewelry
B) Jewelry
C)  Dress
D) Handbag and Jewelry.
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A)  Risk-bearing.
B) Management.
C)  Control.
D) Planning
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A) Retailers only.
B) A central planning committee
C) The operation of price mechanism.
D)  A government distribution agencies
  • 15. 15. One way of obtaining the median of a given data is to__________
A) Sum the value and divide by the number of items.
B) Arrange the data in descending order and add each item to the least.
C) . Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
D) Arrange the data in ascending order and subtract each item from the mean.
  • 16. 16. An increase in the rice harvest, all things being equal, may cause____________
A) Demand to fall substantially.
B)  Farmer's incomes to be more than doubled
C) Price to fall substantially.
D) Price to increase substantially.
  • 17. 17. What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
A)  Demand for the substitute of commodity X will decrease
B) Demand for commodity X will decrease
C) Price of commodity X will increase
D)  Supply of both commodity X and its substitute will increase.
  • 18. 18. An increase in market supply is caused by the following factors except________
A)  An increase in the price of the commodity
B) A favourable weather condition.
C) A reduction in the cost of raw materials.
D) An improvement in innovation and technology.
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Fairly elastic.
B) Inelastic.
C) Unitary elastic.
D) Perfectly inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A)  An increase in quantity supplied
B)  A decrease in quantity supplied
C) An increase in supply.
D) A decrease in supply
  • 21. 21.Government can increase farmers' incomes by__________
A) Fixing minimum prices
B) Encouraging them to produce surplus output.
C) Increasing taxes on inputs.
D)  Fixing maximum prices.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $150.03
B) $166.67
C) $15.00
D) $1.50
  • 23. 23. If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
A) rationing to be introduced
B)  surplus in the market
C) shortage in the in market
D) black market to come into operation
  • 24. 24. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) market Supply
B) composite supply
C) competitive supply
D) joint supply
  • 25. 25. A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?
A)  2.00
B) 1.50
C) 0.50 
D) 1.00
  • 26. 26. Which of the following factors is not a cause of change in demand? Changes in
A) price of the commodity
B) taste and fashion
C) the size of the population
D) income distribution
  • 27. 27. In perfectly elastic supply, the supply curve
A) is horizontal
B) slopes downward
C) slopes upward
D) Is vertical
  • 28. 28. The production of rice and yam on the same farmland is an example of
A) composite supply
B) market supply
C) unitory supply
D) competitive supply
  • 29. 29. If the government imposes a minimum price on a commodity
A) the market will be cleared in the short-run
B)  government regulation is no longer needed
C) excess demand occurs
D) market surplus occurs
  • 30. 30. In manufacturing, division of labour may be hindered by
A) excess supply of labour
B) increase in the export of goods
C) low level of technology
D)  excessive demand for the product
Students who took this test also took :

Created with That Quiz — where test making and test taking are made easy for math and other subject areas.