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

Created with That Quiz — the site for test creation and grading in math and other subjects.