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