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