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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) Derived demand
B) Competitive demand
C) Complementary demand
D) Joint demand
  • 2. Which of the factors does not affect supply
A) Level of technology
B) Production cost
C) Wealth
D) Taxation
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Supply curve
B) None
C) Demand curve
D) Joint supply
  • 4. Demand is said to be composite when it serves
A) As fairly close substitutes
B) Two or more purpose
C) None
D) Same purpose
  • 5. When there is a decrease in demand
A) The demand curve will shift vertically
B) The demand curve will shift to the left
C) The demand curve will shift to the right
D) The demand curve will shift horizontally
  • 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) Market supply
C) Effective supply
D) Market demand
  • 7. The two types of demand are
A) Individual and market demand
B) Leftward and rightward demand
C) Negative and positive demand
D) None of the above
  • 8. The following is an assumption under the law of demand
A) Technological advancement
B) Consumer income remains constant
C) Reduction of production cost
D) Improved infrastructure
  • 9. The table that shows the quantity buyers are willing to buy at different prices at a time
A) Demand curve
B) Demand schedule
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) Demand curve
B) Supply curve
C) Supply schedule
D) Demand schedule
  • 11. Which of the following factors affect supply
A) Weather
B) Wants
C) Demand
D) Choice
  • 12. Supply is said to be be composite when it
A) Produced using the same resources
B) Serves two or more purposes
C) None of the above
D) Is produced and supplied from one source
  • 13. The schedule of all producers or suppliers of a commodity in a market is called
A) Individual demand schedule
B) Market supply schedule
C) None of the above
D) Individual supply schedule
  • 14. Petrol and Kerosene are example of
A) Joint supply
B) Market supply
C) Competitive supply
D) Composite supply
  • 15. When there is an increase in demand, it shifts to the
A) Front
B) Right
C) Back
D) Left
  • 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 lower the price , the higher the quantity demanded
B) The higher the price, the lower the quantity demanded
C) The higher the price, the lower the quantity supplied
D) The higher the price, the higher 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 supply
B) Complementary supply
C) Composite supply
D) Joint demand
  • 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) Competitive supply
B) Composite supply
C) Joint supply
D) Competitive demand
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) Rare commodities
B) Articles of Necessity
C) Articles of Ostentation
D) All of the above
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) From the left to the right
B) From the right to the left
C) None of the above
D) Horizontally
  • 23. A demand pattern which does does abide with the law of demand is
A) Normal demand
B) None
C) Composite 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) 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 an upward 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 a rightward 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) Joint supply
C) Composite 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 price
C) Change in population
D) Change in income
  • 29. What is the main determinant of supply
A) Government policy
B) Technology
C) Price
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 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) Inferior good
B) Normal good
C) Substitute 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 increases
B) Demand decreases
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 shifts to the right
B) It shifts to the left
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) None of the above
B) Supply decreases
C) Supply remains the same
D) Supply increases
  • 35. What happens when there is a decrease in supply and increase in demand
A) Price increases, quantity increases
B) Price increases, quantity decreases
C) Price decreases, 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) Inferior 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 labour to produce cars
D) Demand for bread
  • 38. What is composite demand
A) Demand for a good or service that is independent of other goods or services
B) Demand for a good that is perfectly inelastic
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 for milk for both making and drinking cheese
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 decreases, quantity supplied remains the same
C) As price increases, quantity supplied increases
D) As price increases, quantity supplied decreases
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