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