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) Complementary demand
C) Derived demand
D) Joint demand
  • 2. Which of the factors does not affect supply
A) Wealth
B) Taxation
C) Level of technology
D) Production cost
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Supply curve
B) None
C) Joint supply
D) Demand curve
  • 4. Demand is said to be composite when it serves
A) None
B) Same purpose
C) As fairly close substitutes
D) Two or more purpose
  • 5. When there is a decrease in demand
A) The demand curve will shift to the right
B) The demand curve will shift horizontally
C) The demand curve will shift to the left
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) None of the above
D) Negative and positive demand
  • 8. The following is an assumption under the law of demand
A) Consumer income remains constant
B) Technological advancement
C) Improved infrastructure
D) Reduction of production cost
  • 9. The table that shows the quantity buyers are willing to buy at different prices at a time
A) Supply schedule
B) Demand curve
C) Demand schedule
D) Supply curve
  • 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 schedule
D) Supply curve
  • 11. Which of the following factors affect supply
A) Choice
B) Weather
C) Demand
D) Wants
  • 12. Supply is said to be be composite when it
A) Is produced and supplied from one source
B) Produced using the same resources
C) None of the above
D) Serves two or more purposes
  • 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) None of the above
D) Individual demand schedule
  • 14. Petrol and Kerosene are example of
A) Market supply
B) Competitive supply
C) Joint supply
D) Composite 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) Market demand
C) Joint demand
D) Composite 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 demanded
C) The lower the price , the higher the quantity demanded
D) The higher the price, the lower the quantity supplied
  • 18. Which of the following factors does not affect supply
A) Complementary demand
B) Natural disasters
C) Weather
D) Taxation
  • 19. Beans and bread is an example of
A) Composite supply
B) Joint demand
C) Joint 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) Joint supply
B) Competitive supply
C) Competitive demand
D) Composite supply
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) Articles of Ostentation
B) All of the above
C) Articles of Necessity
D) Rare commodities
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) From the left to the right
B) None of the above
C) From the right to the left
D) Horizontally
  • 23. A demand pattern which does does abide with the law of demand is
A) Normal demand
B) Composite demand
C) None
D) Abnormal demand
  • 24. A normal demand curve slopes
A) Downward from the left to the right
B) Upward from the left to the right
C) Upward from the right to the left
D) Downward from the right to the left
  • 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 rightward 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) Competitive supply
B) Composite supply
C) Derived 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 income of consumers
D) The quantity of a good or service that producers are willing and able to supply
  • 28. Which of the following will not cause a shift in the demand curve
A) Change in consumer taste
B) Change in price
C) Change in population
D) Change in income
  • 29. What is the main determinant of supply
A) Price
B) Cost of production
C) Government policy
D) Technology
  • 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 right
B) It remains the same
C) It shifts to the left
D) It becomes steeper
  • 31. What type of good is one for which demand increases when income increases
A) Inferior good
B) Substitute good
C) Normal good
D) Complementary 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 remains the same
D) Demand increases
  • 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 remains the same
C) It becomes steeper
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 remains the same
C) Supply decreases
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 increases
C) Price increases, quantity decreases
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) Substitute good
B) Inferior good
C) Complementary good
D) Normal 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 drinking
C) Demand of milk for making cheese
D) Demand for cars
  • 40. What is the law of supply
A) As price increases, quantity supplied increases
B) As price increases, quantity supplied decreases
C) As price decreases, quantity supplied increases
D) As price decreases, quantity supplied remains the same
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