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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) Competitive demand
B) Joint demand
C) Derived demand
D) Complementary demand
  • 2. Which of the factors does not affect supply
A) Wealth
B) Level of technology
C) Taxation
D) Production cost
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Supply curve
B) Demand curve
C) Joint supply
D) None
  • 4. Demand is said to be composite when it serves
A) Same purpose
B) As fairly close substitutes
C) Two or more purpose
D) None
  • 5. When there is a decrease in demand
A) The demand curve will shift to the left
B) The demand curve will shift horizontally
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 supply
B) Effective supply
C) Effective demand
D) Market demand
  • 7. The two types of demand are
A) Negative and positive demand
B) Individual and market demand
C) Leftward and rightward demand
D) None of the above
  • 8. The following is an assumption under the law of demand
A) Reduction of production cost
B) Technological advancement
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) Demand schedule
B) Demand curve
C) Supply schedule
D) Supply 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) Demand
B) Wants
C) Weather
D) Choice
  • 12. Supply is said to be be composite when it
A) Is produced and supplied from one source
B) None of the above
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) None of the above
B) Individual demand schedule
C) Individual supply schedule
D) Market supply schedule
  • 14. Petrol and Kerosene are example of
A) Composite supply
B) Competitive supply
C) Market supply
D) Joint supply
  • 15. When there is an increase in demand, it shifts to the
A) Left
B) Right
C) Back
D) Front
  • 16. Flour and sugar are said to be
A) Joint demand
B) Market demand
C) Composite demand
D) Derived demand
  • 17. The law of supply states that
A) The higher the price, the higher the quantity supplied
B) The higher the price, the lower the quantity demanded
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) Complementary demand
B) Taxation
C) Natural disasters
D) Weather
  • 19. Beans and bread is an example of
A) Joint supply
B) Joint demand
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) Composite supply
B) Competitive demand
C) Competitive supply
D) Joint supply
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) Articles of Ostentation
B) Articles of Necessity
C) All of the above
D) Rare commodities
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) From the right to the left
B) None of the above
C) Horizontally
D) From the left to the right
  • 23. A demand pattern which does does abide with the law of demand is
A) Composite demand
B) None
C) Normal demand
D) Abnormal demand
  • 24. A normal demand curve slopes
A) Upward from the left to the right
B) Downward from the right to the left
C) Upward from the right to the left
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 a downward shift in the demand curve
C) There is an upward 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) Composite supply
B) Joint supply
C) Derived supply
D) Competitive supply
  • 27. What is demand
A) The income of consumers
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) 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 population
B) Change in price
C) Change in income
D) Change in consumer taste
  • 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 shifts to the left
B) It remains the same
C) It becomes steeper
D) It shifts to the right
  • 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 increases
B) Demand remains the same
C) Demand decreases
D) Demand remains perfectly elastic
  • 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 becomes steeper
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 increases
B) None of the above
C) Supply decreases
D) Supply remains the same
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price increases, quantity increases
B) Price decreases, quantity increases
C) Price increases, quantity decreases
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) Normal good
B) Complementary good
C) Inferior good
D) Substitute good
  • 37. Which of these is an example of derived demand
A) Demand for cars
B) Demand for labour to produce cars
C) Demand for flour
D) Demand for bread
  • 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 of milk for drinking
B) Demand of milk for making cheese
C) Demand for cars
D) Demand for milk for both making and drinking cheese
  • 40. What is the law of supply
A) As price increases, quantity supplied increases
B) As price decreases, quantity supplied remains the same
C) As price decreases, quantity supplied increases
D) As price increases, quantity supplied decreases
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