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PES SS 3 Economics (Objective) Mock 3 Exam 2025/2026
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  • 1. Points within a Production Possibilities Curve (PPC) indicate ____________.
A) optimum production levels
B) attainable and efficient production levels
C) attainable but inefficient production levels
D) unattainable production levels
  • 2. Which of the following is not a feature of labour?
A) It is highly mobile
B) It is an active factor
C) Its efficiency depends on its size
D) Its reward is wages or salaries
  • 3. The pursuit of private profits is a feature of ______________
A) Statutory economic
B) Capitalist economic
C) Socialist economic
D) Command economic
  • 4. A major feature of the socialist economic system is ______________
A) Private ownership of productive input
B) Setting of production targets by public authorities
C) Determination of Price by market forces
D) Freedom of choice for consumers
  • 5. If the budget on education is $50 m out of an annual national budget of $300 m. The sector of a pie chart representing education is _________.
A) 300°
B) 150°
C) 60°
D) 16.6°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Price of the product
B) Demand for the product
C) Price of another product
D) Income of the buyer
  • 7. When total revenue increases as price falls, the coefficient of price elasticity of demand is  ______________
A) Greater then one
B) Zero
C) One
D) Less then one
  • 8. If the quantity demanded of rice de- creased from 150 bags to 100 bags, the percentage change in quantity demanded is ____________.
A) 66.7%
B) 30.0%
C) 33.3%
D) 50.0%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Size of the production change
C) Incomes of consumers increase
D) Normal goods are involved
  • 10. If the coefficient of price elasticity of supply of a commodity is 0.8, then supply is ____________
A) perfectly inelastic
B) Perfectly elastic
C) fairly elastic
D) fairly inelastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) diminishing returns to scale
B) consumer's choice
C) diminishing marginal utility
D) increasing returns to scale
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) foreign companies.
B) Government
C) Small scale producers
D) Consumers
  • 13. Which of the following best explains diseconomies of scale? Increase in output causes the _______________.
A) average cost to rise
B) marginal revenue to fall
C) marginal cost to fall
D) firm to be de- stabilized
  • 14. In the short-run, a firm can increase output by ______________
A) increasing the size of its machines
B) increasing the quantity of raw materials
C) changing its organizational structure
D) purchasing more equipment
  • 15. The fixed cost of producing 100 units of a good is $600. If the variable cost is $400. the average total cost of one unit of the good is __________
A) $10
B) $4
C) $8
D) $6
  • 16. Firms in perfect competition break even in the long-run because of __________
A) more firms can enter the industry due to attractive prof its
B) profits are not enough to repay traders' loans
C) marginal revenue is greater than marginal cost at all levels
D) new firms can not enter the market due to copyright laws
  • 17. The government policy that encourages public corporations to operate profitably is ____________.
A) indigenization
B) commercialization
C) nationalization
D) liberalization
  • 18. Separation of ownership from control is more pronounced in a __________
A) joint-stock company
B) constimer co- operative society
C) partnership
D) sole proprietorship
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Retailers
B) Wholesalers
C) Supermarket
D) Department store
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) there are less monetary benefits
B) welfare packages improve
C) unemployment benefit rises
D) holiday entitlement is cut
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) merchant banks
B) Stock exchange
C) central banks
D) development banks
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) immigration rate.
B) death rate
C) net migration.
D) fertility rate.
  • 23. The low productivity per worker in agriculture experienced in West African countries is due to _____________ .
A) the presence of many extension workers
B) the use of simple traditional implements
C) the law of increasing returns to scale
D) laziness on the part of farmers
  • 24. What will be the likely effect if agriculture is fully mechanized in West Africa?
A) Labour intensive method of farming will still be dominant
B) More jobs will be available for farm labourers
C) Less labour will be required on the farm
D) Governments will no longer be involved in agriculture
  • 25. National income estimates will be understated as a result of the activities of ___________
A) musicians
B) housekeepers
C) laundry women
D) subsistence farmers
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) store of value
B) relative scarcity
C) standard for deferred payment
D) unit of account
  • 27. Supply of money is best defined as the __________.
A) amount of money spent on consumer goods
B) money given out as loans to members of the public
C) money in circulation plus bank deposits
D) amount of currency printed annually by the government.
  • 28. Capital market operators deal in the ____________.
A) supply of and demand for short term loans only
B) supply of and demand for long term loans for investment
C) sales and purchases of capital equipment
D) sales and purchases of treasury bills
  • 29. A commodity with perfectly inelastic demand has the burden of tax borne by __________.
A) both the buyers and the government
B) both the sellers and the buyers
C) the government alone
D) the buyers alone
  • 30. One indicator of the low level of cap ital formation in developing countries is ___________ .
A) low per capita income
B) low importation of consumer goods
C) high rate of investment
D) high rate of household savings
  • 31. Which of the following is a non-renewable natural resources?
A) Cocoa
B) Oil palm
C) Coal
D) Rubber
  • 32. The demand for a factor input as a result of the demand for it output is known as ____________
A) Complementary demand
B) Competitive demand
C) Derived demand
D) Market demand
  • 33. If the government stops subsidy on cocoa production, the supply curve of coca will ____________.
A) Become vertical
B) Remain unchanged
C) Shift to the right
D) Shift to the left
  • 34. The supply of light could be met using a candle, lantern and gas lamp. This is an example of a____________.
A) Abnormal supply
B) Composite
C) Joint supply
D) Complementary supply
  • 35. Industries are sometimes located in areas which are not profitable so as to ____________ .
A) Be about external economies of scale
B) Encourage rural urban migration
C) Be able to reap internal economies of scake
D) Be able to even out development
  • 36. The study of economics is mainly concerned with how to
A) make choice when resources are inadequate
B) rank individuals' wants given the abundant resources
C) satisfy every member of all societies
D) produce all the goods needed by everyone
  • 37. Resources are pooled for the mutual benefit of its members mainly in a
A) private company
B) partnership
C) cooperative society
D) joint stock company
  • 38. The total fixed cost curve is
A) horizontal
B) vertical
C) upward sloping
D) downward sloping
  • 39. A small scale firm located within an industrial estate will enjoy
A) technological economies of scale
B) financial economies of scale
C) government protection and funding
D) external economies of scale
  • 40. When job vacancies are publicized, the government is mainly trying to solve the problem of
A) frictional unemployment
B) cyclical unemployment
C) residual unemployment
D) technological unemployment
  • 41. An indication that there is inflation in a country is that
A) there are too many goods in circulation
B) there is a decrease in the demand for goods and services
C) the same amount of money buys lower quantity of goods
D) people prefer to lend than to borrow
  • 42. An example of government's recurrent expenditure is
A) electrification projects in rural areas
B) paying salaries of workers
C) purchase of new vehicles
D) the cost of building a school
  • 43. A fall in the price of a normal commodity which has elastic demand will result in
A) a fall in quantity demanded
B) an increase in revenue
C) a decrease in revenue
D) a fall in demand
  • 44. The dependency ratio of a country is the
A) number of children who depend on their parents for survival
B) total active population who depend on government for survival
C) the children and aged who rely on the active population for support
D) people who are cared for by their extended families
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) turn negative
B) decrease
C) remain constant
D) increase
  • 46. Consumers have access to a variety of goods through the activities of the
A) mass media
B) wholesalers
C) retailers
D) advertising agencies
  • 47. The Malthusian theory of population is best illustrated when
A) both population and food supply increase at the same rate
B) the size of the population and available resources are equal
C) population increases much faster than food supply
D) food supply increases much faster than population growth
  • 48. The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is
A) $500m
B) $60m
C) $30m
D) $40m
  • 49. The rate of growth of population is
A) initial population plus number of births and net migration
B) birth rate less death rate plus net migration
C) the number of immigrants plus number of births
D) the difference between birth rate and death rate
  • 50. One of the factor that may not promote industrial development is
A) granting capital to firms at reasonable interest rates
B) granting old firms tax exemptions
C) setting up industrial estates with modern amenities
D) local firms entering into partnerships with foreign firms
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) they practice mechanized system of farming
B) wages in the sector is high
C) labour intensive method is mostly adopted
D) abnormal profits are made
  • 52. Taxes levied on goods and services by government are called
A) poll taxes
B) direct taxes
C) corporate taxes
D) indirect taxes
  • 53. The most liquid asset among the following is
A) shares
B) cash
C) cheque
D) bonds
  • 54. Petrol and Kerosene are jointly obtained from crude oil. If the supply of petrol increases, the
A) cost of crude oil production has increased
B) supply of kerosene will fall
C) supply of kerosene will remain unchanged
D) supply of kerosene will rise
  • 55. The fixing of maximum prices by government is mainly on
A) luxury goods
B) inferior goods
C) selected essential goods
D) imported capital goods
  • 56. The marks obtained by 9 students in a class test are recorded below: 9, 8, 7, 5,7, 6, 8, 9 and 7. What is the median mark?
A) 8
B) 8.5
C) 7.5
D) 7
  • 57. Tariffs, quotas and embargoes are examples of
A) trade restriction policies
B) fiscal policies
C) monetary policies
D) foreign exchange policies
  • 58. A country is described as developing if
A) the population is decreasing
B) the contribution of tertiary sector to national income is high
C) the income per head is low
D) there is low labour supply
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Production of the same commodities
B) Poor transportation and communication
C) Inadequate supply of labour
D) Language barriers
  • 60. An increase in a country's production capacity usually leads to economic
A) growth
B) efficiency
C) stability
D) development
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