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