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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) Joint demand
B) Complementary demand
C) Derived demand
D) Competitive demand
  • 2. Which of the factors does not affect supply
A) Production cost
B) Taxation
C) Level of technology
D) Wealth
  • 3. The graphical representation of the information contained in the deman schedule is called
A) None
B) Joint supply
C) Supply curve
D) Demand curve
  • 4. Demand is said to be composite when it serves
A) Two or more purpose
B) Same purpose
C) As fairly close substitutes
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 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) Market demand
B) Effective demand
C) Effective supply
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) Technological advancement
B) Consumer income remains constant
C) Improved infrastructure
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) Demand curve
C) Supply curve
D) Supply schedule
  • 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) Wants
B) Choice
C) Weather
D) Demand
  • 12. Supply is said to be be composite when it
A) Serves two or more purposes
B) Is produced and supplied from one source
C) Produced using the same resources
D) None of the above
  • 13. The schedule of all producers or suppliers of a commodity in a market is called
A) None of the above
B) Market supply schedule
C) Individual supply schedule
D) Individual demand schedule
  • 14. Petrol and Kerosene are example of
A) Composite supply
B) Joint supply
C) Competitive supply
D) Market supply
  • 15. When there is an increase in demand, it shifts to the
A) Back
B) Left
C) Front
D) Right
  • 16. Flour and sugar are said to be
A) Joint demand
B) Market demand
C) Derived demand
D) Composite 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) Natural disasters
B) Taxation
C) Weather
D) Complementary demand
  • 19. Beans and bread is an example of
A) Joint demand
B) Joint supply
C) Composite supply
D) Complementary 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 supply
D) Competitive demand
  • 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) Articles of Ostentation
D) Rare commodities
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) None of the above
B) From the right to the left
C) Horizontally
D) From the left to the right
  • 23. A demand pattern which does does abide with the law of demand is
A) Abnormal demand
B) None
C) Normal demand
D) Composite demand
  • 24. A normal demand curve slopes
A) Upward from the right to the left
B) Downward from the right to the left
C) Upward from the left to the right
D) Downward from the left to the right
  • 25. When there is an increase in the demand,
A) There is a rightward shift in the demand curve
B) There is an upward shift in the demand curve
C) There is a downward shift in the demand curve
D) There is a leftward shift in the demand curve
  • 26. An illustration of Butter and margarine, meat and fish, omo and klin is an example of
A) Joint supply
B) Composite supply
C) Derived supply
D) Competitive supply
  • 27. What is demand
A) A quantity of a good or service that consumers are willing and able to buy
B) The quantity of a good or service that producers are willing and able to supply
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 consumer taste
B) Change in income
C) Change in population
D) Change in price
  • 29. What is the main determinant of supply
A) Government policy
B) Cost of production
C) Price
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 remains the same
B) It shifts to the left
C) It shifts to the right
D) It becomes steeper
  • 31. What type of good is one for which demand increases when income increases
A) Normal good
B) Inferior 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 remains perfectly elastic
C) Demand increases
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 shifts to the right
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) Supply remains the same
B) Supply increases
C) Supply decreases
D) None of the above
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price decreases, quantity decreases
B) Price increases, quantity increases
C) Price decreases, quantity increases
D) Price increases, quantity decreases
  • 36. What type of demand is one for which an increase in income leads to a decrease in demand
A) Inferior good
B) Substitute good
C) Normal good
D) Complementary good
  • 37. Which of these is an example of derived demand
A) Demand for labour to produce cars
B) Demand for bread
C) Demand for flour
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 or service that is independent of other goods or services
D) Demand for a good that is perfectly inelastic
  • 39. Which of the following is an example of a composite demand
A) Demand for cars
B) Demand for milk for both making and drinking cheese
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 increases
B) As price increases, quantity supplied decreases
C) As price decreases, quantity supplied increases
D) As price decreases, quantity supplied remains the same
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