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) Joint demand
D) Complementary demand
  • 2. Which of the factors does not affect supply
A) Level of technology
B) Wealth
C) Taxation
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 left
B) The demand curve will shift vertically
C) The demand curve will shift horizontally
D) The demand curve will shift to the right
  • 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) Market supply
C) Effective demand
D) Effective supply
  • 7. The two types of demand are
A) None of the above
B) Negative and positive demand
C) Individual and market demand
D) Leftward and rightward demand
  • 8. The following is an assumption under the law of demand
A) Consumer income remains constant
B) Technological advancement
C) Reduction of production cost
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 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) Wants
B) Weather
C) Choice
D) Demand
  • 12. Supply is said to be be composite when it
A) Produced using the same resources
B) None of the above
C) Is produced and supplied from one source
D) Serves two or more purposes
  • 13. The schedule of all producers or suppliers of a commodity in a market is called
A) None of the above
B) Individual demand schedule
C) Individual supply schedule
D) Market supply schedule
  • 14. Petrol and Kerosene are example of
A) Joint supply
B) Composite supply
C) Market supply
D) Competitive supply
  • 15. When there is an increase in demand, it shifts to the
A) Back
B) Right
C) Left
D) Front
  • 16. Flour and sugar are said to be
A) Composite demand
B) Derived demand
C) Market demand
D) Joint demand
  • 17. The law of supply states that
A) The higher the price, the lower the quantity supplied
B) The higher the price, the lower the quantity demanded
C) The higher the price, the higher the quantity supplied
D) The lower the price , the higher the quantity demanded
  • 18. Which of the following factors does not affect supply
A) Natural disasters
B) Taxation
C) Complementary demand
D) Weather
  • 19. Beans and bread is an example of
A) Complementary supply
B) Composite supply
C) Joint supply
D) Joint demand
  • 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) 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) Horizontally
B) None of the above
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) Composite demand
B) None
C) Abnormal demand
D) Normal demand
  • 24. A normal demand curve slopes
A) Downward from the right to the left
B) Upward from the right to the left
C) Upward from the left to the right
D) Downward from the left to the right
  • 25. When there is an increase in the demand,
A) There is an upward shift in the demand curve
B) There is a rightward 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) Composite supply
B) Derived supply
C) Competitive supply
D) Joint supply
  • 27. What is demand
A) The price of a good or service
B) The income of consumers
C) A quantity of a good or service that consumers are willing and able to buy
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 price
B) Change in population
C) Change in consumer taste
D) Change in income
  • 29. What is the main determinant of supply
A) Price
B) Government policy
C) Cost of production
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) 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 remains the same
B) Demand decreases
C) Demand remains perfectly elastic
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 shifts to the right
C) It becomes steeper
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 remains the same
B) Supply decreases
C) Supply increases
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 decreases, quantity decreases
C) Price increases, quantity decreases
D) Price increases, 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) Normal good
D) Complementary good
  • 37. Which of these is an example of derived demand
A) Demand for cars
B) Demand for labour to produce cars
C) Demand for bread
D) Demand for flour
  • 38. What is composite demand
A) Demand for a good that is perfectly elastic
B) Demand for a good that is perfectly inelastic
C) Demand for a good ro service that has multiple uses
D) Demand for a good or service that is independent of other goods or services
  • 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 of milk for drinking
D) Demand for milk for both making and drinking cheese
  • 40. What is the law of supply
A) As price increases, quantity supplied increases
B) As price decreases, quantity supplied remains the same
C) As price decreases, quantity supplied increases
D) As price increases, quantity supplied decreases
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