ThatQuiz Test Library Take this test now
PES SS2 Economics 3rd Mock
Contributed by: School
  • 1. Economics Is regarded as a science because
A) It adopts scientific method in making its analysis
B) its issues are relevant for national development
C) its subject matter studies human behaviour
  • 2. The opportunity cost of a worker going to the university is
A) tuition fee and books
B) the wages given up to attend the university
C) transportation and entertainment
  • 3. Which of the following item is not an option of circulating capital
A) fuel
B) machinery
C) raw material
  • 4. In a market economy,the problem of what goods to produced is solved primarily by
A) producers of consumer goods
B) directives of the government
C) the pattern of consumers spending
  • 5. The difference between demand and want is in the
A) ability to pay for the commodity
B) desire for the commodity
C) ability to pay for the commodity
  • 6. Which of the following is an example of derived demand
A) labour
B) textbook
C) mobile phone
  • 7. A right ward shift in the supply of a commodity is brought about by an increase in
A) the level of technology
B) cost of production
C) taxation
  • 8. Effective supply is the total amount of a commodity
A) offered for sale at a market price
B) produced for the market
C) from a single producer
  • 9. Price elasticity of supply can be influenced by the following factors except
A) nature of the product
B) time period
C) cost of production
  • 10. Increase in the supply of a product can be caused by
A) increase in the income of consumers
B) increase in the price of a product
C) a fall in the cost of production
  • 11. A rational consumer will purchase a product whose price is
A) equal to his total utility
B) equal to his marginal utility
C) less than his total utility
  • 12. Parallel market are usually the results of
A) inadequate information
B) price legislation
C) excess supply
  • 13. Another term for equilibrium price is
A) market clearing price
B) demand price
C) price fall
  • 14. When a firm is enjoying internal economies of scale, its
A) average cost of production decreases as output increases
B) total cost of production is increasing
C) average revenue and marginal revenue decreases
  • 15. The specialisation of labour enhances production because people ?
A) become experts in all areas of production
B) can concentrate on all goods
C) can save time and produce more
  • 16. Which of the following can be added to a firm's profit to obtain total revenue
A) total fixed cost
B) marginal cost
C) total revenue
  • 17. The amount of money that a firm receives from the sales of it's output is called
A) total cost
B) total revenue
C) total profit
  • 18. Which of the following is true of monopolist
A) he determines either price or output
B) his average revenue cost is horizontal
C) he determines both price and output
  • 19. Equity shares form the bulk of the capital of a
A) private firm
B) public company
C) statutory company
  • 20. If a state owned firm is sold through the stock market,the organization becomes
A) partnership
B) public corporation
C) public limited company
  • 21. The total number of people of working age who are willing and prepared to work at a given age wage rate is the
A) labour force
B) supply of labour
C) demand of labour
  • 22. Which of the following is an implication of a large population
A) increase in food supply
B) decrease in standard of living
C) decrease in cost of living
  • 23. In an industrial area, the location of an industry is largely influenced by ?
A) internal economies
B) external economies
C) extent of the division of labour
  • 24. Which of the following is a threat to the existence of middlemen
A) producers cooperative society
B) sales agents
C) consumers cooperative society
  • 25. Which of the following is a transfer of income
A) pensions
B) rent
C) interest
  • 26. The value added method used in measuring national income is to
A) avoid multiple counting of output
B) measure output as a factor cost
C) add net factor income from abroad
  • 27. Which of the following is most likely to be of a benefit to a debtor
A) inflation
B) devaluation
C) deflation
  • 28. A measure of the value of money in an economy is
A) total level of savings
B) general price
C) size of workers
  • 29. One of the major function of money is
A) stable in value
B) store of value
C) medium of exchange
  • 30. The function that distinguishes commercial banks from the central bank is that the former
A) accepts deposit from the public
B) services the public debts
C) lender of last resort
  • 31. Direct taxes include
A) capital gain tax
B) specific tax
C) excise duty
  • 32. Which of the following is not a feature of underdevelopment
A) high productivity
B) low life expectancy
C) income inequality
  • 33. One way of speeding up the economic development of a country is by encouraging
A) importation of more consumers goods
B) early marriage
C) savings and investment
  • 34. Infant industries can be described as
A) newly established industries
B) industries producing baby products
C) industries enjoying tax holidays
  • 35. Modern international trade is based on the principle of
A) terms of trade
B) absolute cost advantage
C) comparative advantage
  • 36. Which of the following resources is renewable
A) coal
B) iron ore
C) rice
  • 37. The negative effect of mining in West Africa does not include
A) pollution of water bodies
B) land degradation
C) re afforestation in rural communities
  • 38. Economic problems arises in all society because
A) there is no proper planning
B) resources are mismanaged by leaders
C) resources are not in adequate supply
  • 39. Which of the following is not emphasized in a production possibility curve
A) unemployment of labour
B) economic development
C) scarcity of resources
  • 40. The organization of productive factors is the responsibility of the
A) management
B) entrepreneur
C) labour union
  • 41. A downward sloping demand curve means that
A) demand falls as output falls
B) prices must be lowered to sell more
C) demand falls as output rises
  • 42. Goods whose demand vary directly with money income are called
A) inferior goods
B) normal goods
C) complementary goods
  • 43. An exceptional demand curve can result from
A) expectation of future price increase
B) increases in price of the consumer
C) change in taste of the consumer
  • 44. Palm oil and palm kernel are in
A) complementary demand
B) competitive demand
C) joint supply
  • 45. Which of the following is true about supply of land?
A) It rises with demand
B) It varies with time
C) It is fixed
  • 46. A supply curve parallel to the X -axis indicates
A) perfectly inelastic
B) infinitely elastic supply
C) fairly elastic supply
  • 47. A market is in equilibrium when
A) there is no free entry and exit
B) there is no government intervention
C) the demand is the same as the supply
  • 48. In the long-run, a firm must shutdown if the average revenue is
A) equal to the average cost
B) less than average variable cost
C) greater than average variable cost
  • 49. If workers at the school canteen sell during the holidays, this is an example of
A) residual unemployment
B) structural unemployment
C) seasonal unemployment
  • 50. The largest component of national income in developing countries consist of
A) profits
B) wages and salaries
C) rent
  • 51. Holding money to take care of contingencies is
A) a speculative motive
B) a transaction motive
C) a precautionary motive
  • 52. The stock exchange is an example of the
A) commodity market
B) money market
C) capital market
  • 53. The fundamental economic problem in every society is
A) inadequate supply of money
B) corruption and mismanagement
C) the large number of the unemployed
  • 54. The poorer the country, the larger the percentage of labour force engaged in _______
A) agriculture
B) trading
C) mining
  • 55. Which of the following is not a method of reducing balance of payments deficits?
A) adding to export group
B) increasing local production
C) reducing tarrifs
  • 56. The stock exchange is an example of the...
A) labour market
B) money market
C) capital market
  • 57. Nations engage in international trade because of the difference in
A) variable cost
B) comparative cost
C) fixed cost
  • 58. What happens when the central bank increases bank rate in an economy?
A) money supply increases
B) borrowing is discouraged
C) customers increase their borrowing
  • 59. The major employer of labour in developing countries is
A) primary sector
B) secondary sector
C) tertiary sector
  • 60. Income is redistributed when the rich are progressively taxed and _________
A) more private schools are established
B) more public goods are provided
C) subsidy is provided on petroleum products
Students who took this test also took :

Created with That Quiz — the math test generation site with resources for other subject areas.