Economics SS2 (3rd Assesssment)
  • 1. Want or need refers to
A) a list of need
B) a mere demand
C) all the above
D) a mere desire not backed by ability and willingness
  • 2. An effective demand is a want
A) backed by the ability to pay
B) None of the above
C) backed by want
D) backed by desire
  • 3. ________________ is the quantity of any good that producers are willing and able to offer for sale
A) Total production
B) Effective demand
C) Supply
  • 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 lower the price, the lower the quantity supplied
C) the higher the price,the higher the demand
  • 5. Who is the father of Economics
A) Adam Smith
B) Alferd Marshal
C) A.C Pigou
D) John Stuart
  • 6. Economics is regarded as both science and social science
A) False
B) Partially
C) Incorrect
D) True
  • 7. Economics is regarded as science because
A) It adopts humanity method
B) It adopts scientific methods
C) It adopts socialist methods
D) It adopts philosophical method
  • 8. Scarcity is defined as the
A) unlimited supply of resources
B) None of the above
C) abundance supply of goods
D) limited supply of resources
  • 9. There are __________ major types of bar charts
A) five
B) six
C) four
D) three
  • 10. ____________ is also known as forgone alternatives
A) Opportunity cost
B) Want
C) Choice
D) Scale of preference
  • 11. There are _________ major branches of economics
A) two
B) Three
C) four
D) six
  • 12. Exceptional demand is also known as
A) abnormal demand
B) normal demand
C) effective demand
D) ineffective demand
  • 13. One of the following is a cause of exceptional demand
A) articles of necessity
B) all of the above
C) articles of ostentation
D) future expectation
  • 14. A shift in demand is grouped into
A) two
B) seven
C) three
D) five
  • 15. Natural disasters is one of the factors affecting supply
A) true
B) false
  • 16. Decrease in the quantity demanded is caused by
A) price of the commodity
B) price of other goods
C) Price of other services
  • 17. Income of the consumer is one of the factors affecting demand
A) false
B) partially
C) true
  • 18. Decrease in the quantity supplied is caused by
A) taxation
B) cost of the production
C) price
D) number of producers
  • 19. __________ occurs when a certain good can serve two or more purposes
A) Composite supply
B) Competitive demand
C) Joint demand
  • 20. Articles of necessity is also known as
A) inferior or giffen goods
B) real goods
C) superior or giffen goods
D) substandard goods
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