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