AIC Exam 1st Term Economics for SS 2 2022/2023
  • 1. 1. Want or need refers to
A) a mere desire not backed by ability and willingness
B) all the above
C) a list of need
D) a mere demand
  • 2. 2. An effective demand is a want
A) None of the above
B) backed by desire
C) backed by the ability to pay
D) backed by want
  • 3. 3. ________________ is the quantity of any good that producers are willing and able to offer for sale
A) Total production
B) Supply
C) Effective demand
  • 4. 4. The first law of demand States that
A) the lower the price, the lower the quantity supplied
B) all things being equal, the higher the price, the lower the quantity demanded and vice versa
C) the higher the price,the higher the demand
  • 5. 5. Who is the father of Economics?
A) Adam Smith
B) John Stuart
C) A.C Pigou
D) Alferd Marshal
  • 6. 6. Economics is regarded as both science and social science
A) Incorrect
B) Partially
C) True
D) False
  • 7. 7. Economics is regarded as science because
A) It adopts socialist methods
B) It adopts philosophical method
C) It adopts humanity method
D) It adopts scientific methods
  • 8. 8. Scarcity is defined as the
A) limited supply of resources
B) abundance supply of goods
C) unlimited supply of resources
D) None of the above
  • 9. 9. There are __________ major types of bar charts
A) six
B) five
C) four
D) three
  • 10. 10. ____________ is also known as forgone alternatives
A) Scale of preference
B) Opportunity cost
C) Want
D) Choice
  • 11. 11. There are _________ major branches of economics
A) six
B) four
C) Three
D) two
  • 12. 12. Exceptional demand is also known as
A) abnormal demand
B) effective demand
C) normal demand
D) ineffective demand
  • 13. 13. One of the following is a cause of exceptional demand
A) articles of ostentation
B) all of the above
C) future expectation
D) articles of necessity
  • 14. 14. A shift in demand is grouped into
A) two
B) five
C) three
D) seven
  • 15. 15. Natural disasters is one of the factors affecting supply
A) true
B) false
C) Unknown
D) Not certain
  • 16. 16. Decrease in the quantity demanded is caused by
A) price of the commodity
B) Price of other services
C) price of other goods
  • 17. 17. Income of the consumer is one of the factors affecting demand
A) true
B) partially
C) Incorrect
D) false
  • 18. 18. Decrease in the quantity supplied is caused by
A) taxation
B) price
C) cost of the production
D) number of producers
  • 19. 19. __________ occurs when a certain good can serve two or more purposes
A) Competitive demand
B) Joint demand
C) Composite supply
  • 20. 20. Articles of necessity is also known as
A) substandard goods
B) real goods
C) superior or giffen goods
D) inferior or giffen goods
  • 21. 21. _______________ refers to graph showing the possible combinations of two commodities that can be produced given the level of resources and technology.
A) Production Possibility Boundary
B) Production
C) Opportunity cost
D) Money cost
  • 22. 22. Points outside the PPC , are referred as ____________________
A) Non- feasible area
B) Official use of resources
C) feasible area
D) waste of resources
  • 23. 23. Points inside the PPC are said to be ___________________
A) feasible area
B) good area
C) non-feasible area
D) attainable
  • 24. 24. Points inside the PPC, indicate production is feasible but resources are
A) not efficiently used
B) efficiently used
C) sufficient
D) efficient
  • 25. 25. The ________________ can be regraded as the most frequently occurring number in a set of data.
A) Mode
B) mean
C) arithmetic mean
D) median
  • 26. 26. ___________________ is the satisfaction a consumer derives in consuming a good or service.
A) Bill
B) Utility
C) service
D) Commodity
  • 27. 27. _________________ is defined as the limited supply of resources which are used for the satisfaction of unlimited wants.
A) Opportunity cost
B) Want
C) Scarcity
D) Choice
  • 28. 28. ________________ is defined as a system of selecting one out of a number of alternatives
A) Desire
B) Need
C) Want
D) Choice
  • 29. 29. ____________________ refers to the total amount of money that is spent in order to acquire a set of goods and services
A) Money matter
B) Monument
C) Monetary
D) Money cost
  • 30. Rising wages is one of the causes of abnormal supply.
A) True
B) Unknown
C) Partly
D) False
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