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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) Complementary demand
C) Joint demand
D) Competitive demand
  • 2. Which of the factors does not affect supply
A) Taxation
B) Production cost
C) Wealth
D) Level of technology
  • 3. The graphical representation of the information contained in the deman schedule is called
A) Demand curve
B) Joint supply
C) Supply curve
D) None
  • 4. Demand is said to be composite when it serves
A) Same purpose
B) Two or more 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 right
C) The demand curve will shift to the left
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) Effective demand
B) Market demand
C) Effective supply
D) Market supply
  • 7. The two types of demand are
A) None of the above
B) Leftward and rightward demand
C) Individual and market demand
D) Negative and positive demand
  • 8. The following is an assumption under the law of demand
A) Reduction of production cost
B) Improved infrastructure
C) Technological advancement
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) Supply curve
D) Demand 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) Choice
B) Weather
C) Wants
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) Individual demand schedule
B) None of the above
C) Market supply schedule
D) Individual supply schedule
  • 14. Petrol and Kerosene are example of
A) Joint supply
B) Composite supply
C) Competitive supply
D) Market supply
  • 15. When there is an increase in demand, it shifts to the
A) Front
B) Back
C) Right
D) Left
  • 16. Flour and sugar are said to be
A) Joint demand
B) Derived 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) Complementary demand
C) Natural disasters
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) Joint supply
B) Competitive demand
C) Composite supply
D) Competitive supply
  • 21. Goods which command or have high prestige value like gold, jewellry, luxury cars are
A) All of the above
B) Articles of Necessity
C) Articles of Ostentation
D) Rare commodities
  • 22. When there is a decrease in demand, it causes the demand curve to shift
A) From the left to the right
B) Horizontally
C) None of the above
D) From the right to the left
  • 23. A demand pattern which does does abide with the law of demand is
A) Normal demand
B) Abnormal demand
C) Composite demand
D) None
  • 24. A normal demand curve slopes
A) Upward from the right to the left
B) Downward from the left to the right
C) Upward from the left to the right
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 downward shift in the demand curve
C) There is an upward 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) Composite supply
B) Competitive supply
C) Derived supply
D) Joint supply
  • 27. What is demand
A) The income of consumers
B) A quantity of a good or service that consumers are willing and able to buy
C) The quantity of a good or service that producers are willing and able to supply
D) The price of a good or service
  • 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) Price
B) Technology
C) Cost of production
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 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) Inferior good
B) Complementary 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 remains perfectly elastic
B) Demand remains the same
C) Demand decreases
D) Demand increases
  • 33. What happens to the supply curve when there is an increase in the numbers of producers
A) It remains the same
B) It becomes steeper
C) It shifts to the right
D) It shifts to the left
  • 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 decreases
C) None of the above
D) Supply increases
  • 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) Normal good
B) Complementary good
C) Substitute good
D) Inferior 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 that is perfectly inelastic
B) Demand for a good that is perfectly elastic
C) Demand for a good ro service that has multiple uses
D) Demand for a good or service that is independent of other goods or services
  • 39. Which of the following is an example of a composite demand
A) Demand of milk for making cheese
B) Demand for milk for both making and drinking cheese
C) Demand for cars
D) Demand of milk for drinking
  • 40. What is the law of supply
A) As price decreases, quantity supplied remains the same
B) As price increases, quantity supplied decreases
C) As price decreases, quantity supplied increases
D) As price increases, quantity supplied increases
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