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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) unattainable production levels
B) attainable and efficient production levels
C) optimum 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) Socialist economic
C) Statutory economic
D) Capitalist economic
  • 4. A major feature of the socialist economic system is ______________
A) Private ownership of productive input
B) Freedom of choice for consumers
C) Determination of Price by market forces
D) Setting of production targets by public authorities
  • 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) 60°
C) 150°
D) 16.6°
  • 6. Price elasticity of demand is the responsiveness of quantity demanded to a change in _______________.
A) Income of the buyer
B) Price of another product
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) Less then one
B) One
C) Greater then one
D) Zero
  • 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) 50.0%
D) 66.7%
  • 9. The law of demand will not hold when
A) Normal goods are involved
B) Incomes of consumers increase
C) Rare commodities
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) Perfectly elastic
B) fairly inelastic
C) perfectly inelastic
D) fairly elastic
  • 11. The negative slope of the demand curve is best explained by ____________.
A) consumer's choice
B) increasing returns to scale
C) diminishing returns to scale
D) diminishing marginal utility
  • 12. Minimum price legislation is used to protect the interests of ___________.
A) foreign companies.
B) Consumers
C) Government
D) Small scale producers
  • 13. Which of the following best explains diseconomies of scale? Increase in output causes the _______________.
A) marginal cost to fall
B) marginal revenue to fall
C) average cost to rise
D) firm to be de- stabilized
  • 14. In the short-run, a firm can increase output by ______________
A) increasing the quantity of raw materials
B) purchasing more equipment
C) increasing the size of its machines
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) 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) liberalization
B) indigenization
C) nationalization
D) commercialization
  • 18. Separation of ownership from control is more pronounced in a __________
A) constimer co- operative society
B) partnership
C) sole proprietorship
D) joint-stock company
  • 19. Warehousing of goods in the process of distribution is the function of __________.
A) Wholesalers
B) Supermarket
C) Retailers
D) Department store
  • 20. The supply of labour to an occupation will tend to rise when ____________
A) welfare packages improve
B) unemployment benefit rises
C) holiday entitlement is cut
D) there are less monetary benefits
  • 21. Commercial banks settle their inter-bank indebtedness through __________.
A) central banks
B) development banks
C) merchant banks
D) Stock exchange
  • 22. In determining the growth of a country's population, infant mortality is a component of _______________
A) fertility rate.
B) death rate
C) net migration.
D) immigration 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) 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) subsistence farmers
B) musicians
C) laundry women
D) housekeepers
  • 26. The function of money that enables credit purchases of goods and services is _____________
A) relative scarcity
B) standard for deferred payment
C) unit of account
D) store of value
  • 27. Supply of money is best defined as the __________.
A) money given out as loans to members of the public
B) amount of money spent on consumer goods
C) amount of currency printed annually by the government.
D) money in circulation plus bank deposits
  • 28. Capital market operators deal in the ____________.
A) sales and purchases of capital equipment
B) sales and purchases of treasury bills
C) supply of and demand for long term loans for investment
D) supply of and demand for short term loans only
  • 29. A commodity with perfectly inelastic demand has the burden of tax borne by __________.
A) the government alone
B) the buyers alone
C) both the sellers and the buyers
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) Rubber
B) Cocoa
C) Oil palm
D) Coal
  • 32. The demand for a factor input as a result of the demand for it output is known as ____________
A) Competitive demand
B) Complementary 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) Shift to the left
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) Joint supply
B) Abnormal supply
C) Complementary supply
D) Composite
  • 35. Industries are sometimes located in areas which are not profitable so as to ____________ .
A) Be able to reap internal economies of scake
B) Be about external economies of scale
C) Encourage rural urban migration
D) Be able to even out development
  • 36. The study of economics is mainly concerned with how to
A) produce all the goods needed by everyone
B) make choice when resources are inadequate
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) private company
B) joint stock company
C) partnership
D) cooperative society
  • 38. The total fixed cost curve is
A) downward sloping
B) upward sloping
C) vertical
D) horizontal
  • 39. A small scale firm located within an industrial estate will enjoy
A) technological economies of scale
B) financial economies of scale
C) external 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) frictional unemployment
B) cyclical unemployment
C) technological unemployment
D) residual unemployment
  • 41. An indication that there is inflation in a country is that
A) people prefer to lend than to borrow
B) the same amount of money buys lower quantity of goods
C) there is a decrease in the demand for goods and services
D) there are too many goods in circulation
  • 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) a decrease in revenue
B) an increase in revenue
C) a fall in demand
D) a fall in quantity demanded
  • 44. The dependency ratio of a country is the
A) total active population who depend on government for survival
B) the children and aged who rely on the active population for support
C) people who are cared for by their extended families
D) number of children who depend on their parents for survival
  • 45. When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
A) decrease
B) remain constant
C) increase
D) turn negative
  • 46. Consumers have access to a variety of goods through the activities of the
A) wholesalers
B) retailers
C) advertising agencies
D) mass media
  • 47. The Malthusian theory of population is best illustrated when
A) food supply increases much faster than population growth
B) both population and food supply increase at the same rate
C) the size of the population and available resources are equal
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) $40m
C) $60m
D) $30m
  • 49. The rate of growth of population is
A) the number of immigrants plus number of births
B) the difference between birth rate and death rate
C) birth rate less death rate plus net migration
D) initial population plus number of births and net migration
  • 50. One of the factor that may not promote industrial development is
A) local firms entering into partnerships with foreign firms
B) granting old firms tax exemptions
C) setting up industrial estates with modern amenities
D) granting capital to firms at reasonable interest rates
  • 51. Many workers are employed in the agricultural sector of developing countries because
A) abnormal profits are made
B) wages in the sector is high
C) they practice mechanized system of farming
D) labour intensive method is mostly adopted
  • 52. Taxes levied on goods and services by government are called
A) direct taxes
B) corporate taxes
C) indirect taxes
D) poll taxes
  • 53. The most liquid asset among the following is
A) bonds
B) shares
C) cash
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) 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) 7.5
B) 8.5
C) 8
D) 7
  • 57. Tariffs, quotas and embargoes are examples of
A) monetary policies
B) trade restriction policies
C) foreign exchange policies
D) fiscal 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) there is low labour supply
D) the income per head is low
  • 59. Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
A) Language barriers
B) Inadequate supply of labour
C) Poor transportation and communication
D) Production of the same commodities
  • 60. An increase in a country's production capacity usually leads to economic
A) stability
B) growth
C) development
D) efficiency
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