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

    .
A) Control.
B) Management.
C) Risk-bearing.
D) Planning
  • 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) Demand to fall substantially.
B) Price to fall substantially.
C) Price to increase substantially.
D) Farmer's incomes to be more than doubled
  • 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) Price of commodity X will increase
D) Demand for the substitute of commodity X will decrease
  • 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 $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Fairly elastic.
B) Perfectly inelastic.
C) Inelastic.
D) Unitary elastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A) An increase in supply.
B) A decrease in quantity supplied
C) A decrease in supply
D) An increase in quantity supplied
  • 21. 21.Government can increase farmers' incomes by__________
A) Increasing taxes on inputs.
B) Fixing minimum prices
C) Encouraging them to produce surplus output.
D) Fixing maximum prices.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $150.03
B) $15.00
C) $1.50
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) surplus in the market
C) rationing to be introduced
D) shortage in the in 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) competitive supply
B) composite supply
C) market 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) 1.00
C) 0.50
D) 1.50
  • 26. 26. Which of the following factors is not a cause of change in demand? Changes in
A) income distribution
B) the size of the population
C) price of the commodity
D) taste and fashion
  • 27. 27. In perfectly elastic supply, the supply curve
A) slopes downward
B) slopes upward
C) is horizontal
D) Is vertical
  • 28. 28. The production of rice and yam on the same farmland is an example of
A) competitive supply
B) composite supply
C) market supply
D) unitory supply
  • 29. 29. If the government imposes a minimum price on a commodity
A) market surplus occurs
B) excess demand occurs
C) government regulation is no longer needed
D) the market will be cleared in the short-run
  • 30. 30. In manufacturing, division of labour may be hindered by
A) excess supply of labour
B) excessive demand for the product
C) increase in the export of goods
D) low level of technology
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