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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) Less than the equilibrium supply
B) Determined later by government
C) . The same as equilibrium supply
D) None of these
E) Greater than equilibrium supply
  • 2. 2. Price control cannot work in Nigeria because
A) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
B) the population is too large
C) too many things are produced in the country
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) Joint demand
B) composite demand
C) competitive demand
D) cross-elasticity of demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) resources
B) wants
C) scarcity
D) capital
  • 5. 5. Land as a factor of production is made useful through the
A) acts of nature
B) application of human effort
C) application of fertilizer
D) use of machines
  • 6. 6. In a free market economy, resources are allocated through the
A) government department
B) state planning committee.
C) price mechanisms
D) trade union
  • 7. 7. A consumer is in equilibrium when
A) the market is also in equilibrium
B) he maximizes his satisfaction from spending his income
C) he has consumed all he wants
D) his market Supply is equal to his market demand
  • 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) competitive supply
B) composite supply
C) joint 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) competitive supply
B) joint supply
C) joint demand
D) composite supply
  • 10. 10. An increase in supply means that
A) there is a movement along the supply curve
B) more is sold at different prices
C) more is sold at the same price
D) there is a leftward shift of 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) 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) Jewelry
C) Handbag and Jewelry.
D) Dress
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A) Management.
B) Planning
C) Risk-bearing.
D) Control.
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A) A central planning committee
B) A government distribution agencies
C) The operation of price mechanism.
D) Retailers only.
  • 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) . Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
C) Arrange the data in descending order and add each item to the least.
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 increase substantially.
B) Demand to fall substantially.
C) Farmer's incomes to be more than doubled
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 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 the substitute of 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 improvement in innovation and technology.
C) A reduction in the cost of raw materials.
D) An increase in the price of the commodity
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Perfectly inelastic.
B) Unitary elastic.
C) Fairly elastic.
D) Inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A) An increase in supply.
B) An increase in quantity supplied
C) A decrease in supply
D) A decrease in quantity supplied
  • 21. 21.Government can increase farmers' incomes by__________
A) Increasing taxes on inputs.
B) Fixing minimum prices
C) Encouraging them to produce surplus output.
D) Fixing maximum prices.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $150.03
B) $166.67
C) $1.50
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) black market to come into operation
B) surplus in the market
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) market Supply
B) joint supply
C) composite supply
D) competitive 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) 0.50
B) 1.50
C) 2.00
D) 1.00
  • 26. 26. Which of the following factors is not a cause of change in demand? Changes in
A) the size of the population
B) price of the commodity
C) taste and fashion
D) income distribution
  • 27. 27. In perfectly elastic supply, the supply curve
A) slopes downward
B) slopes upward
C) is horizontal
D) Is vertical
  • 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) excess demand occurs
B) market surplus 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) low level of technology
B) excessive demand for the product
C) excess supply of labour
D) increase in the export of goods
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