PES SS 2 Economics Term 1 Exam 2025-2026
  • 1. The type of demand which occurs as a result of demand
A) Derived demand
B) Competitive demand
C) Complementary demand
D) Joint demand
  • 2. Which of the factors does not affect supply
A) Taxation
B) Level of technology
C) Wealth
D) Production cost
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Supply curve
B) None
C) Demand curve
D) Joint supply
  • 4. Demand is said to be composite when it serves
A) Same purpose
B) Two or more purpose
C) As fairly close substitutes
D) None
  • 5. When there is a decrease in demand
A) The demand curve will shift to the left
B) The demand curve will shift vertically
C) The demand curve will shift to the right
D) The demand curve will shift horizontally
  • 6. When a consumers demand is backed up with the necessary ability and willingness to pay is said to be an
A) Market demand
B) Effective supply
C) Effective demand
D) Market supply
  • 7. The two types of demand are
A) Individual and market demand
B) None of the above
C) Negative and positive demand
D) Leftward and rightward demand
  • 8. The following is an assumption under the law of demand
A) Improved infrastructure
B) Consumer income remains constant
C) Reduction of production cost
D) Technological advancement
  • 9. The table that shows the quantity buyers are willing to buy at different prices at a time
A) Demand schedule
B) Demand curve
C) Supply schedule
D) Supply curve
  • 10. The table that shows the quantity sellers are willing to offer for sales at a given period is
A) Supply curve
B) Demand curve
C) Demand schedule
D) Supply schedule
  • 11. Which of the following factors affect supply
A) Weather
B) Demand
C) Wants
D) Choice
  • 12. Supply is said to be be composite when it
A) Is produced and supplied from one source
B) Serves two or more purposes
C) Produced using the same resources
D) None of the above
  • 13. The schedule of all producers or suppliers of a commodity in a market is called
A) Market supply schedule
B) Individual demand schedule
C) Individual supply schedule
D) None of the above
  • 14. Petrol and Kerosene are example of
A) Competitive supply
B) Market supply
C) Composite supply
D) Joint supply
  • 15. When there is an increase in demand, it shifts to the
A) Back
B) Left
C) Front
D) Right
  • 16. Flour and sugar are said to be
A) Market demand
B) Composite demand
C) Joint demand
D) Derived demand
  • 17. The law of supply states that
A) The lower the price , the higher the quantity demanded
B) The higher the price, the lower the quantity supplied
C) The higher the price, the lower the quantity demanded
D) The higher the price, the higher the quantity supplied
  • 18. Which of the following factors does not affect supply
A) Weather
B) Taxation
C) Natural disasters
D) Complementary demand
  • 19. Beans and bread is an example of
A) Complementary supply
B) Joint supply
C) Joint demand
D) Composite supply
  • 20. The situation which occurs when two or more products are produced using the same resources such that an increase will lead to a reduction in the supply of the other is called
A) Composite supply
B) Competitive supply
C) Joint supply
D) Competitive demand
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) All of the above
B) Rare commodities
C) Articles of Necessity
D) Articles of Ostentation
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) Horizontally
B) None of the above
C) From the right to the left
D) From the left to the right
  • 23. A demand pattern which does does abide with the law of demand is
A) None
B) Normal demand
C) Abnormal demand
D) Composite demand
  • 24. A normal demand curve slopes
A) Upward from the right to the left
B) Downward from the left to the right
C) Downward from the right to the left
D) Upward from the left to the right
  • 25. When there is an increase in the demand,
A) There is a downward shift in the demand curve
B) There is an upward shift in the demand curve
C) There is a leftward shift in the demand curve
D) There is a rightward shift in the demand curve
  • 26. An illustration of Butter and margarine, meat and fish, omo and klin is an example of
A) Joint supply
B) Derived supply
C) Composite supply
D) Competitive supply
  • 27. What is demand
A) The quantity of a good or service that producers are willing and able to supply
B) A quantity of a good or service that consumers are willing and able to buy
C) The income of consumers
D) The price of a good or service
  • 28. Which of the following will not cause a shift in the demand curve
A) Change in income
B) Change in population
C) Change in price
D) Change in consumer taste
  • 29. What is the main determinant of supply
A) Price
B) Government policy
C) Technology
D) Cost of production
  • 30. What happens to the supply curve when a producer expects the price of a good to increase in the future
A) It becomes steeper
B) It remains the same
C) It shifts to the left
D) It shifts to the right
  • 31. What type of good is one for which demand increases when income increases
A) Inferior good
B) Normal good
C) Complementary good
D) Substitute good
  • 32. What is the effect of an increase in the price of a substitute good on the demand for a good
A) Demand remains the same
B) Demand decreases
C) Demand increases
D) Demand remains perfectly elastic
  • 33. What happens to the supply curve when there is an increase in the numbers of producers
A) It shifts to the left
B) It becomes steeper
C) It shifts to the right
D) It remains the same
  • 34. What is the effect of an increase in the cost of production on the supply of a good
A) Supply increases
B) None of the above
C) Supply decreases
D) Supply remains the same
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price decreases, quantity decreases
B) Price decreases, quantity increases
C) Price increases, quantity increases
D) Price increases, quantity decreases
  • 36. What type of demand is one for which an increase in income leads to a decrease in demand
A) Substitute good
B) Inferior good
C) Normal good
D) Complementary good
  • 37. Which of these is an example of derived demand
A) Demand for cars
B) Demand for flour
C) Demand for labour to produce cars
D) Demand for bread
  • 38. What is composite demand
A) Demand for a good that is perfectly elastic
B) Demand for a good ro service that has multiple uses
C) Demand for a good or service that is independent of other goods or services
D) Demand for a good that is perfectly inelastic
  • 39. Which of the following is an example of a composite demand
A) Demand for milk for both making and drinking cheese
B) Demand of milk for making cheese
C) Demand for cars
D) Demand of milk for drinking
  • 40. What is the law of supply
A) As price decreases, quantity supplied remains the same
B) As price decreases, quantity supplied increases
C) As price increases, quantity supplied increases
D) As price increases, quantity supplied decreases
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