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