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

    .
A)  Control.
B) Planning
C) Management.
D)  Risk-bearing.
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A) The operation of price mechanism.
B) Retailers only.
C)  A government distribution agencies
D) A central planning committee
  • 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) Demand to fall substantially.
B)  Farmer's incomes to be more than doubled
C) Price 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)  Supply of both commodity X and its substitute will increase.
C) Price of commodity X 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)  An increase in the price of the commodity
B) An improvement in innovation and technology.
C) A reduction in the cost of raw materials.
D) A favourable weather condition.
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Fairly elastic.
B) Perfectly inelastic.
C) Inelastic.
D) Unitary elastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A)  An increase in quantity supplied
B)  A decrease in quantity supplied
C) An increase in supply.
D) A decrease in supply
  • 21. 21.Government can increase farmers' incomes by__________
A)  Fixing maximum prices.
B) Encouraging them to produce surplus output.
C) Fixing minimum prices
D) Increasing taxes on inputs.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $150.03
B) $1.50
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)  surplus in the market
B) rationing to be introduced
C) black market to come into operation
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) joint supply
B) competitive 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)  2.00
B) 1.50
C) 0.50 
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) price of the commodity
D) the size of the population
  • 27. 27. In perfectly elastic supply, the supply curve
A) Is vertical
B) slopes upward
C) is horizontal
D) slopes downward
  • 28. 28. The production of rice and yam on the same farmland is an example of
A) market supply
B) competitive 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) the market will be cleared in the short-run
D) market surplus occurs
  • 30. 30. In manufacturing, division of labour may be hindered by
A) excess supply of labour
B) low level of technology
C)  excessive demand for the product
D) increase in the export of goods
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