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PES Firebrand Class Economics Mock 1
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  • 1. 1. Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be
A) None of these
B) . The same as equilibrium supply
C) Less than the equilibrium supply
D) Greater than equilibrium supply
E) Determined later by government
  • 2. 2. Price control cannot work in Nigeria because
A) too many things are produced in the country
B) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
C) the population is too large
D) control cannot work under military rule
  • 3. 3. The effect of the demand for product A caused by a change in the price of a product B is called?
A) competitive demand
B) composite demand
C) Joint demand
D) cross-elasticity of demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) scarcity
B) capital
C) wants
D) resources
  • 5. 5. Land as a factor of production is made useful through the
A) application of fertilizer
B) application of human effort
C) acts of nature
D) use of machines
  • 6. 6. In a free market economy, resources are allocated through the
A) government department
B) price mechanisms
C) state planning committee.
D) trade union
  • 7. 7. A consumer is in equilibrium when
A) his market Supply is equal to his market demand
B) the market is also in equilibrium
C) he has consumed all he wants
D) he maximizes his satisfaction from spending his income
  • 8. 8. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) composite supply
B) market Supply
C) competitive supply
D) joint supply
  • 9. 9. If an increase in the supply of beef increased the supply of hides, then beef and hides are in
A) composite supply
B) competitive supply
C) joint supply
D) joint demand
  • 10. 10. An increase in supply means that
A) there is a leftward shift of the supply curve
B) there is a movement along the supply curve
C) more is sold at different prices
D) more is sold at the same price
  • 11. 11. The study of economics is Important to every society because it______
A) Helps producers to know what to produce
B) Restores equilibrium between producers and consumers
C) Enables individuals to satisfy all their wants
D) . Helps in the utilization of scarce resources
  • 12. 12. A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
A) Dress and Jewelry
B) Dress
C) Jewelry
D) Handbag and Jewelry.
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A) Risk-bearing.
B) Control.
C) Management.
D) Planning
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A) Retailers only.
B) A government distribution agencies
C) The operation of price mechanism.
D) A central planning committee
  • 15. 15. One way of obtaining the median of a given data is to__________
A) Sum the value and divide by the number of items.
B) Arrange the data in ascending order and subtract each item from the mean.
C) . Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
D) Arrange the data in descending order and add each item to the least.
  • 16. 16. An increase in the rice harvest, all things being equal, may cause____________
A) Price to increase substantially.
B) Farmer's incomes to be more than doubled
C) Demand to fall substantially.
D) Price to fall substantially.
  • 17. 17. What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
A) Price of commodity X will increase
B) Demand for commodity X will decrease
C) Demand for the substitute of commodity X will decrease
D) Supply of both commodity X and its substitute will increase.
  • 18. 18. An increase in market supply is caused by the following factors except________
A) An improvement in innovation and technology.
B) A favourable weather condition.
C) An increase in the price of the commodity
D) A reduction in the cost of raw materials.
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Unitary elastic.
B) Fairly elastic.
C) Perfectly inelastic.
D) Inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A) An increase in quantity supplied
B) An increase in supply.
C) A decrease in quantity supplied
D) A decrease in supply
  • 21. 21.Government can increase farmers' incomes by__________
A) Fixing minimum prices
B) Fixing maximum prices.
C) Increasing taxes on inputs.
D) Encouraging them to produce surplus output.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $1.50
B) $150.03
C) $15.00
D) $166.67
  • 23. 23. If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
A) black market to come into operation
B) surplus in the market
C) rationing to be introduced
D) shortage in the in market
  • 24. 24. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) composite supply
B) joint supply
C) competitive supply
D) market Supply
  • 25. 25. A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?
A) 2.00
B) 0.50
C) 1.00
D) 1.50
  • 26. 26. Which of the following factors is not a cause of change in demand? Changes in
A) price of the commodity
B) taste and fashion
C) income distribution
D) the size of the population
  • 27. 27. In perfectly elastic supply, the supply curve
A) slopes downward
B) is horizontal
C) slopes upward
D) Is vertical
  • 28. 28. The production of rice and yam on the same farmland is an example of
A) competitive supply
B) market supply
C) composite supply
D) unitory supply
  • 29. 29. If the government imposes a minimum price on a commodity
A) excess demand occurs
B) government regulation is no longer needed
C) market surplus occurs
D) the market will be cleared in the short-run
  • 30. 30. In manufacturing, division of labour may be hindered by
A) excessive demand for the product
B) low level of technology
C) excess supply of labour
D) increase in the export of goods
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