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PES SS 3 Economics (Objective) Mock 2 Exam 2025\2026
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  • 1. Points within a Production Possibilities Curve (PPC) indicate ____________.
A) optimum production levels
B) unattainable production levels
C) attainable and efficient production levels
D) attainable but inefficient production levels
  • 2. Which of the following is not a feature of labour?
A) Its reward is wages or salaries
B) It is highly mobile
C) It is an active factor
D) Its efficiency depends on its size
  • 3. The pursuit of private profits is a feature of ______________
A) Socialist economic
B) Statutory economic
C) Command economic
D) Capitalist economic
  • 4. A major feature of the socialist economic system is ______________
A) Determination of Price by market forces
B) Freedom of choice for consumers
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) 60°
B) 150°
C) 300°
D) 16.6°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Demand for the product
B) Income of the buyer
C) Price of the product
D) Price of another product
  • 7. When total revenue increases as price falls, the coefficient of price elasticity of demand is  ______________
A) Greater then one
B) One
C) Zero
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) 30.0%
B) 33.3%
C) 66.7%
D) 50.0%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Size of the production change
C) Normal goods are involved
D) Incomes of consumers increase
  • 10. If the coefficient of price elasticity of supply of a commodity is 0.8, then supply is ____________
A) Perfectly elastic
B) fairly elastic
C) fairly inelastic
D) perfectly inelastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) diminishing marginal utility
B) consumer's choice
C) increasing returns to scale
D) diminishing returns to scale
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) Small scale producers
B) Consumers
C) foreign companies.
D) Government
  • 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) changing its organizational structure
C) purchasing more equipment
D) increasing the quantity of raw materials
  • 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) $10
D) $8
  • 16. Firms in perfect competition break even in the long-run because of __________
A) marginal revenue is greater than marginal cost at all levels
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) profits are not enough to repay traders' loans
  • 17. The government policy that encourages public corporations to operate profitably is ____________.
A) nationalization
B) indigenization
C) liberalization
D) commercialization
  • 18. Separation of ownership from control is more pronounced in a __________
A) partnership
B) joint-stock company
C) constimer co- operative society
D) sole proprietorship
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Wholesalers
B) Department store
C) Retailers
D) Supermarket
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) unemployment benefit rises
B) there are less monetary benefits
C) holiday entitlement is cut
D) welfare packages improve
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) merchant banks
B) central banks
C) Stock exchange
D) development banks
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) death rate
B) net migration.
C) immigration 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 use of simple traditional implements
C) the law of increasing returns to scale
D) the presence of many extension workers
  • 24. What will be the likely effect if agriculture is fully mechanized in West Africa?
A) More jobs will be available for farm labourers
B) Labour intensive method of farming will still be dominant
C) Governments will no longer be involved in agriculture
D) Less labour will be required on the farm
  • 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) relative scarcity
C) store of value
D) standard for deferred payment
  • 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 long term loans for investment
B) sales and purchases of treasury bills
C) supply of and demand for short term loans only
D) sales and purchases of capital equipment
  • 29. A commodity with perfectly inelastic demand has the burden of tax borne by __________.
A) both the sellers and the buyers
B) both the buyers and the government
C) the buyers alone
D) the government alone
  • 30. One indicator of the low level of cap ital formation in developing countries is ___________ .
A) high rate of household savings
B) low importation of consumer goods
C) high rate of investment
D) low per capita income
  • 31. Which of the following is a non-renewable natural resources?
A) Rubber
B) Coal
C) Oil palm
D) Cocoa
  • 32. The demand for a factor input as a result of the demand for it output is known as ____________
A) Complementary demand
B) Market 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 right
B) Become vertical
C) Shift to the left
D) Remain unchanged
  • 34. The supply of light could be met using a candle, lantern and gas lamp. This is an example of a____________.
A) Composite
B) Abnormal supply
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) Be able to even out development
D) Encourage rural urban migration
  • 36. The study of economics is mainly concerned with how to
A) make choice when resources are inadequate
B) produce all the goods needed by everyone
C) rank individuals' wants given the abundant resources
D) satisfy every member of all societies
  • 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) upward sloping
B) vertical
C) horizontal
D) downward sloping
  • 39. A small scale firm located within an industrial estate will enjoy
A) external economies of scale
B) financial economies of scale
C) technological 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) residual unemployment
B) frictional unemployment
C) technological unemployment
D) cyclical unemployment
  • 41. An indication that there is inflation in a country is that
A) there are too many goods in circulation
B) the same amount of money buys lower quantity of goods
C) there is a decrease in the demand for goods and services
D) people prefer to lend than to borrow
  • 42. An example of government's recurrent expenditure is
A) the cost of building a school
B) electrification projects in rural areas
C) paying salaries of workers
D) purchase of new vehicles
  • 43. A fall in the price of a normal commodity which has elastic demand will result in
A) an increase in revenue
B) a fall in demand
C) a fall in quantity demanded
D) a decrease in revenue
  • 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) people who are cared for by their extended families
D) the children and aged who rely on the active population for support
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) remain constant
B) increase
C) decrease
D) turn negative
  • 46. Consumers have access to a variety of goods through the activities of the
A) mass media
B) advertising agencies
C) retailers
D) wholesalers
  • 47. The Malthusian theory of population is best illustrated when
A) the size of the population and available resources are equal
B) food supply increases much faster than population growth
C) both population and food supply increase at the same rate
D) population increases much faster than food supply
  • 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) $40m
D) $60m
  • 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 difference between birth rate and death rate
D) the number of immigrants plus number of births
  • 50. One of the factor that may not promote industrial development is
A) local firms entering into partnerships with foreign firms
B) granting capital to firms at reasonable interest rates
C) setting up industrial estates with modern amenities
D) granting old firms tax exemptions
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) labour intensive method is mostly adopted
B) abnormal profits are made
C) wages in the sector is high
D) they practice mechanized system of farming
  • 52. Taxes levied on goods and services by government are called
A) indirect taxes
B) corporate taxes
C) direct taxes
D) poll taxes
  • 53. The most liquid asset among the following is
A) cheque
B) cash
C) bonds
D) shares
  • 54. Petrol and Kerosene are jointly obtained from crude oil. If the supply of petrol increases, the
A) supply of kerosene will remain unchanged
B) supply of kerosene will rise
C) cost of crude oil production has increased
D) supply of kerosene will fall
  • 55. The fixing of maximum prices by government is mainly on
A) selected essential goods
B) luxury goods
C) imported capital goods
D) inferior 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) 7
C) 8
D) 7.5
  • 57. Tariffs, quotas and embargoes are examples of
A) monetary policies
B) foreign exchange policies
C) fiscal policies
D) trade restriction policies
  • 58. A country is described as developing if

    A.
    B.
    C.
    D.
A) the income per head is low
B) there is low labour supply
C) the population is decreasing
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) Inadequate supply of labour
B) Language barriers
C) Production of the same commodities
D) Poor transportation and communication
  • 60. An increase in a country's production capacity usually leads to economic
A) stability
B) efficiency
C) growth
D) development
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