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

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