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PES SS 2 Economics Term 1 Exam 2025-2026
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  • 1. The type of demand which occurs as a result of demand
A) Complementary demand
B) Competitive demand
C) Joint demand
D) Derived demand
  • 2. Which of the factors does not affect supply
A) Level of technology
B) Taxation
C) Wealth
D) Production cost
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Joint supply
B) Supply curve
C) Demand curve
D) None
  • 4. Demand is said to be composite when it serves
A) As fairly close substitutes
B) Same purpose
C) Two or more purpose
D) None
  • 5. When there is a decrease in demand
A) The demand curve will shift horizontally
B) The demand curve will shift to the left
C) The demand curve will shift to the right
D) The demand curve will shift vertically
  • 6. When a consumers demand is backed up with the necessary ability and willingness to pay is said to be an
A) Market demand
B) Effective demand
C) Market supply
D) Effective supply
  • 7. The two types of demand are
A) None of the above
B) Negative and positive demand
C) Leftward and rightward demand
D) Individual and market demand
  • 8. The following is an assumption under the law of demand
A) Technological advancement
B) Reduction of production cost
C) Consumer income remains constant
D) Improved infrastructure
  • 9. The table that shows the quantity buyers are willing to buy at different prices at a time
A) Supply curve
B) Supply schedule
C) Demand curve
D) Demand schedule
  • 10. The table that shows the quantity sellers are willing to offer for sales at a given period is
A) Demand curve
B) Demand schedule
C) Supply schedule
D) Supply curve
  • 11. Which of the following factors affect supply
A) Wants
B) Choice
C) Weather
D) Demand
  • 12. Supply is said to be be composite when it
A) None of the above
B) Is produced and supplied from one source
C) Serves two or more purposes
D) Produced using the same resources
  • 13. The schedule of all producers or suppliers of a commodity in a market is called
A) Market supply schedule
B) Individual supply schedule
C) None of the above
D) Individual demand schedule
  • 14. Petrol and Kerosene are example of
A) Competitive supply
B) Joint supply
C) Composite supply
D) Market supply
  • 15. When there is an increase in demand, it shifts to the
A) Front
B) Right
C) Left
D) Back
  • 16. Flour and sugar are said to be
A) Joint demand
B) Composite demand
C) Derived demand
D) Market demand
  • 17. The law of supply states that
A) The higher the price, the lower the quantity demanded
B) The higher the price, the higher the quantity supplied
C) The lower the price , the higher the quantity demanded
D) The higher the price, the lower the quantity supplied
  • 18. Which of the following factors does not affect supply
A) Natural disasters
B) Taxation
C) Complementary demand
D) Weather
  • 19. Beans and bread is an example of
A) Joint demand
B) Joint supply
C) Complementary supply
D) Composite supply
  • 20. The situation which occurs when two or more products are produced using the same resources such that an increase will lead to a reduction in the supply of the other is called
A) Joint supply
B) Composite supply
C) Competitive demand
D) Competitive supply
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) Articles of Necessity
B) Rare commodities
C) All of the above
D) Articles of Ostentation
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) From the right to the left
B) Horizontally
C) From the left to the right
D) None of the above
  • 23. A demand pattern which does does abide with the law of demand is
A) Composite demand
B) Abnormal demand
C) None
D) Normal demand
  • 24. A normal demand curve slopes
A) Upward from the left to the right
B) Downward from the right to the left
C) Downward from the left to the right
D) Upward from the right to the left
  • 25. When there is an increase in the demand,
A) There is a rightward shift in the demand curve
B) There is a leftward shift in the demand curve
C) There is a downward shift in the demand curve
D) There is an upward shift in the demand curve
  • 26. An illustration of Butter and margarine, meat and fish, omo and klin is an example of
A) Derived supply
B) Competitive supply
C) Composite supply
D) Joint supply
  • 27. What is demand
A) The quantity of a good or service that producers are willing and able to supply
B) A quantity of a good or service that consumers are willing and able to buy
C) The price of a good or service
D) The income of consumers
  • 28. Which of the following will not cause a shift in the demand curve
A) Change in population
B) Change in price
C) Change in income
D) Change in consumer taste
  • 29. What is the main determinant of supply
A) Price
B) Government policy
C) Technology
D) Cost of production
  • 30. What happens to the supply curve when a producer expects the price of a good to increase in the future
A) It remains the same
B) It shifts to the right
C) It shifts to the left
D) It becomes steeper
  • 31. What type of good is one for which demand increases when income increases
A) Inferior good
B) Normal good
C) Complementary good
D) Substitute good
  • 32. What is the effect of an increase in the price of a substitute good on the demand for a good
A) Demand decreases
B) Demand increases
C) Demand remains perfectly elastic
D) Demand remains the same
  • 33. What happens to the supply curve when there is an increase in the numbers of producers
A) It becomes steeper
B) It shifts to the left
C) It remains the same
D) It shifts to the right
  • 34. What is the effect of an increase in the cost of production on the supply of a good
A) Supply increases
B) Supply decreases
C) Supply remains the same
D) None of the above
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price decreases, quantity increases
B) Price increases, quantity decreases
C) Price increases, quantity increases
D) Price decreases, quantity decreases
  • 36. What type of demand is one for which an increase in income leads to a decrease in demand
A) Substitute good
B) Normal good
C) Complementary good
D) Inferior good
  • 37. Which of these is an example of derived demand
A) Demand for flour
B) Demand for bread
C) Demand for labour to produce cars
D) Demand for cars
  • 38. What is composite demand
A) Demand for a good ro service that has multiple uses
B) Demand for a good that is perfectly elastic
C) Demand for a good that is perfectly inelastic
D) Demand for a good or service that is independent of other goods or services
  • 39. Which of the following is an example of a composite demand
A) Demand for milk for both making and drinking cheese
B) Demand for cars
C) Demand of milk for drinking
D) Demand of milk for making cheese
  • 40. What is the law of supply
A) As price increases, quantity supplied decreases
B) As price increases, quantity supplied increases
C) As price decreases, quantity supplied increases
D) As price decreases, quantity supplied remains the same
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