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) Derived demand
C) Complementary demand
D) Competitive demand
  • 2. Which of the factors does not affect supply
A) Production cost
B) Taxation
C) Level of technology
D) Wealth
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Demand curve
B) None
C) Supply curve
D) Joint supply
  • 4. Demand is said to be composite when it serves
A) As fairly close substitutes
B) Two or more purpose
C) Same purpose
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 to the right
C) The demand curve will shift horizontally
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 demand
B) Market supply
C) Effective demand
D) Effective supply
  • 7. The two types of demand are
A) Individual and market demand
B) Negative and positive demand
C) Leftward and rightward demand
D) None of the above
  • 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) Demand curve
B) Supply curve
C) Demand schedule
D) Supply schedule
  • 10. The table that shows the quantity sellers are willing to offer for sales at a given period is
A) Supply schedule
B) Demand curve
C) Demand schedule
D) Supply curve
  • 11. Which of the following factors affect supply
A) Demand
B) Weather
C) Wants
D) Choice
  • 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) 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) None of the above
C) Individual demand schedule
D) Individual supply schedule
  • 14. Petrol and Kerosene are example of
A) Composite supply
B) Competitive supply
C) Market supply
D) Joint supply
  • 15. When there is an increase in demand, it shifts to the
A) Left
B) Front
C) Right
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 lower the quantity supplied
B) The higher the price, the higher the quantity supplied
C) The lower the price , the higher the quantity demanded
D) The higher the price, the lower the quantity demanded
  • 18. Which of the following factors does not affect supply
A) Weather
B) Taxation
C) Complementary demand
D) Natural disasters
  • 19. Beans and bread is an example of
A) Joint supply
B) Joint demand
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) Competitive demand
B) Competitive supply
C) Composite supply
D) Joint 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) Horizontally
D) From the right to the left
  • 23. A demand pattern which does does abide with the law of demand is
A) Abnormal demand
B) Composite demand
C) Normal demand
D) None
  • 24. A normal demand curve slopes
A) Downward from the left to the right
B) Downward from the right to the left
C) Upward 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 an upward shift in the demand curve
B) There is a downward 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) Composite supply
B) Competitive supply
C) Joint supply
D) Derived supply
  • 27. What is demand
A) A quantity of a good or service that consumers are willing and able to buy
B) The quantity of a good or service that producers are willing and able to supply
C) The price of a good or service
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 income
C) Change in price
D) Change in consumer taste
  • 29. What is the main determinant of supply
A) Government policy
B) Cost of production
C) Price
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 becomes steeper
D) It shifts to the left
  • 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 increases
B) Demand remains the same
C) Demand decreases
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 right
B) It shifts to the left
C) It remains the same
D) It becomes steeper
  • 34. What is the effect of an increase in the cost of production on the supply of a good
A) Supply decreases
B) None of the above
C) Supply remains the same
D) Supply increases
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price increases, quantity decreases
B) Price decreases, quantity decreases
C) Price decreases, quantity increases
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) Normal good
B) Complementary good
C) Inferior good
D) Substitute good
  • 37. Which of these is an example of derived demand
A) Demand for labour to produce cars
B) Demand for cars
C) Demand for flour
D) Demand for bread
  • 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 ro service that has multiple uses
C) Demand for a good that is perfectly elastic
D) Demand for a good that is perfectly inelastic
  • 39. Which of the following is an example of a composite demand
A) Demand of milk for making cheese
B) Demand for cars
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 increases, quantity supplied decreases
C) As price decreases, quantity supplied remains the same
D) As price decreases, quantity supplied increases
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