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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) 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)  too many things are produced in the country
D) the population is too large
  • 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) Joint demand
C) cross-elasticity of demand
D)  competitive demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) resources
B) capital
C) wants
D) scarcity
  • 5. 5. Land as a factor of production is made useful through the 
A) application of human effort
B) acts of nature
C) use of machines
D) application of fertilizer
  • 6. 6. In a free market economy, resources are allocated through the 
A)  state planning committee.
B) government department
C) trade union
D) price mechanisms
  • 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 maximizes his satisfaction from spending his income
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) composite supply
B) joint supply
C) competitive supply
D) market 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 the same price
B)  more is sold at different prices
C) there is a movement along the supply curve 
D) there is a leftward shift of the supply curve
  • 11. 11. The study of economics is Important to every society because it______ 
A) Restores equilibrium between producers and consumers
B) Helps producers to know what to produce
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) Handbag and Jewelry.
B) Jewelry
C)  Dress
D) Dress and Jewelry
  • 13. 13. The distinguishing function of an entrepreneur is_______

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