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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) Determined later by government
C) Less than the equilibrium supply
D) . The same as equilibrium supply
E) Greater than equilibrium supply
  • 2. 2. Price control cannot work in Nigeria because
A) control cannot work under military rule
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) too many things are produced in the country
  • 3. 3. The effect of the demand for product A caused by a change in the price of a product B is called?
A) composite demand
B) cross-elasticity of demand
C) competitive demand
D) Joint demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) capital
B) scarcity
C) resources
D) wants
  • 5. 5. Land as a factor of production is made useful through the
A) application of fertilizer
B) use of machines
C) application of human effort
D) acts of nature
  • 6. 6. In a free market economy, resources are allocated through the
A) trade union
B) government department
C) price mechanisms
D) state planning committee.
  • 7. 7. A consumer is in equilibrium when
A) his market Supply is equal to his market demand
B) he maximizes his satisfaction from spending his income
C) the market is also in equilibrium
D) he has consumed all he wants
  • 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) joint supply
B) market Supply
C) competitive supply
D) composite supply
  • 9. 9. If an increase in the supply of beef increased the supply of hides, then beef and hides are in
A) joint demand
B) composite supply
C) competitive supply
D) joint supply
  • 10. 10. An increase in supply means that
A) more is sold at different prices
B) there is a leftward shift of the supply curve
C) more is sold at the same price
D) there is a movement along the supply curve
  • 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) . Helps in the utilization of scarce resources
D) Enables individuals to satisfy all their wants
  • 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
B) Handbag and Jewelry.
C) Jewelry
D) Dress and Jewelry
  • 13. 13. The distinguishing function of an entrepreneur is_______

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