ThatQuiz Test Library Take this test now
PES SS 3 Economics (Objective) Mock 3 Exam 2025/2026
Contributed by: School
  • 1. Points within a Production Possibilities Curve (PPC) indicate ____________.
A) attainable and efficient production levels
B) optimum production levels
C) unattainable production levels
D) attainable but inefficient production levels
  • 2. Which of the following is not a feature of labour?
A) Its efficiency depends on its size
B) It is an active factor
C) It is highly mobile
D) Its reward is wages or salaries
  • 3. The pursuit of private profits is a feature of ______________
A) Command economic
B) Statutory economic
C) Capitalist economic
D) Socialist economic
  • 4. A major feature of the socialist economic system is ______________
A) Setting of production targets by public authorities
B) Private ownership of productive input
C) Freedom of choice for consumers
D) Determination of Price by market forces
  • 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) 16.6°
D) 300°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Price of another product
B) Income of the buyer
C) Price of the product
D) Demand for the product
  • 7. When total revenue increases as price falls, the coefficient of price elasticity of demand is  ______________
A) Zero
B) One
C) Less then one
D) Greater 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) 50.0%
B) 33.3%
C) 30.0%
D) 66.7%
  • 9. The law of demand will not hold when
A) Rare commodities
B) Normal goods are involved
C) Incomes of consumers increase
D) Size of the production change
  • 10. If the coefficient of price elasticity of supply of a commodity is 0.8, then supply is ____________
A) fairly inelastic
B) perfectly inelastic
C) Perfectly elastic
D) fairly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) increasing returns to scale
B) diminishing returns to scale
C) diminishing marginal utility
D) consumer's choice
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) foreign companies.
B) Government
C) Consumers
D) Small scale producers
  • 13. Which of the following best explains diseconomies of scale? Increase in output causes the _______________.
A) average cost to rise
B) firm to be de- stabilized
C) marginal revenue to fall
D) marginal cost to fall
  • 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) $6
B) $10
C) $4
D) $8
  • 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) commercialization
C) nationalization
D) liberalization
  • 18. Separation of ownership from control is more pronounced in a __________
A) partnership
B) joint-stock company
C) sole proprietorship
D) constimer co- operative society
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Department store
B) Retailers
C) Supermarket
D) Wholesalers
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) welfare packages improve
B) unemployment benefit rises
C) there are less monetary benefits
D) holiday entitlement is cut
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) development banks
B) merchant banks
C) Stock exchange
D) central 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 use of simple traditional implements
B) laziness on the part of farmers
C) the presence of many extension workers
D) the law of increasing returns to scale
  • 24. What will be the likely effect if agriculture is fully mechanized in West Africa?
A) Governments will no longer be involved in agriculture
B) Less labour will be required on the farm
C) More jobs will be available for farm labourers
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) subsistence farmers
B) housekeepers
C) laundry women
D) musicians
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) relative scarcity
B) store of value
C) unit of account
D) standard for deferred payment
  • 27. Supply of money is best defined as the __________.
A) amount of money spent on consumer goods
B) money in circulation plus bank deposits
C) money given out as loans to members of the public
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) supply of and demand for short term loans only
C) sales and purchases of treasury bills
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) the buyers alone
C) both the buyers and the government
D) the government alone
  • 30. One indicator of the low level of cap ital formation in developing countries is ___________ .
A) high rate of investment
B) high rate of household savings
C) low importation of consumer goods
D) low per capita income
  • 31. Which of the following is a non-renewable natural resources?
A) Oil palm
B) Cocoa
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) Shift to the left
B) Become vertical
C) Shift to the right
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) Complementary supply
B) Joint supply
C) Composite
D) Abnormal 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 even out development
D) Be able to reap internal economies of scake
  • 36. The study of economics is mainly concerned with how to
A) make choice when resources are inadequate
B) satisfy every member of all societies
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) joint stock company
B) cooperative society
C) partnership
D) private company
  • 38. The total fixed cost curve is
A) vertical
B) upward sloping
C) downward sloping
D) horizontal
  • 39. A small scale firm located within an industrial estate will enjoy
A) external economies of scale
B) technological economies of scale
C) government protection and funding
D) financial economies of scale
  • 40. When job vacancies are publicized, the government is mainly trying to solve the problem of
A) cyclical unemployment
B) frictional 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) purchase of new vehicles
B) the cost of building a school
C) paying salaries of workers
D) electrification projects in rural areas
  • 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 quantity demanded
C) a fall in demand
D) a decrease in revenue
  • 44. The dependency ratio of a country is the
A) total active population who depend on government for survival
B) number of children who depend on their parents 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) turn negative
D) decrease
  • 46. Consumers have access to a variety of goods through the activities of the
A) advertising agencies
B) mass media
C) wholesalers
D) retailers
  • 47. The Malthusian theory of population is best illustrated when
A) population increases much faster than food supply
B) both population and food supply increase at the same rate
C) food supply increases much faster than population growth
D) the size of the population and available resources are equal
  • 48. The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is
A) $40m
B) $60m
C) $500m
D) $30m
  • 49. The rate of growth of population is
A) initial population plus number of births and net migration
B) the number of immigrants plus number of births
C) birth rate less death rate plus net migration
D) the difference between birth rate and death rate
  • 50. One of the factor that may not promote industrial development is
A) local firms entering into partnerships with foreign firms
B) setting up industrial estates with modern amenities
C) granting capital to firms at reasonable interest rates
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) corporate taxes
B) direct taxes
C) poll taxes
D) indirect taxes
  • 53. The most liquid asset among the following is
A) bonds
B) cash
C) shares
D) cheque
  • 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 fall
C) supply of kerosene will rise
D) cost of crude oil production has increased
  • 55. The fixing of maximum prices by government is mainly on
A) inferior goods
B) imported capital goods
C) luxury goods
D) selected essential 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) 7.5
C) 8.5
D) 7
  • 57. Tariffs, quotas and embargoes are examples of
A) fiscal policies
B) monetary policies
C) foreign exchange policies
D) trade restriction policies
  • 58. A country is described as developing if
A) the contribution of tertiary sector to national income is high
B) there is low labour supply
C) the income per head is low
D) the population is decreasing
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Poor transportation and communication
B) Production of the same commodities
C) Inadequate supply of labour
D) Language barriers
  • 60. An increase in a country's production capacity usually leads to economic
A) efficiency
B) development
C) stability
D) growth
Students who took this test also took :

Created with That Quiz — where test making and test taking are made easy for math and other subject areas.