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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) Determined later by government
B) Less than the equilibrium supply
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) control cannot work under military rule
B) too many things are produced in the country
C) the population is too large
D) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
  • 3. 3. The effect of the demand for product A caused by a change in the price of a product B is called?
A) cross-elasticity of demand
B) Joint demand
C) competitive demand
D) composite demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) wants
B) scarcity
C) capital
D) resources
  • 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) state planning committee.
B) trade union
C) government department
D) price mechanisms
  • 7. 7. A consumer is in equilibrium when
A) his market Supply is equal to his market demand
B) he has consumed all he wants
C) the market is also in equilibrium
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) competitive supply
B) composite supply
C) market 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) 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 in the utilization of scarce resources
C) Helps producers to know what to produce
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 and Jewelry
B) Jewelry
C) Handbag and Jewelry.
D) Dress
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A) Management.
B) Risk-bearing.
C) Control.
D) Planning
  • 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) 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 descending order and add each item to the least.
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 ascending order and subtract each item from the mean.
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) 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) 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 $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Fairly elastic.
B) Unitary elastic.
C) Perfectly inelastic.
D) Inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A) A decrease in quantity supplied
B) An increase in quantity supplied
C) A decrease in supply
D) An increase in supply.
  • 21. 21.Government can increase farmers' incomes by__________
A) Fixing maximum prices.
B) Increasing taxes on inputs.
C) Encouraging them to produce surplus output.
D) Fixing minimum prices
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $15.00
B) $1.50
C) $166.67
D) $150.03
  • 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) shortage in the in market
C) surplus in the 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) market Supply
C) joint supply
D) composite 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) 2.00
C) 1.50
D) 1.00
  • 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) the size of the population
D) price of the commodity
  • 27. 27. In perfectly elastic supply, the supply curve
A) slopes upward
B) slopes downward
C) is horizontal
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) unitory supply
D) composite supply
  • 29. 29. If the government imposes a minimum price on a commodity
A) the market will be cleared in the short-run
B) excess demand occurs
C) government regulation is no longer needed
D) market surplus occurs
  • 30. 30. In manufacturing, division of labour may be hindered by
A) increase in the export of goods
B) low level of technology
C) excess supply of labour
D) excessive demand for the product
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