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AIC Exam 1st Term Economics for SS 2 2022/2023
Contributed by: College
(Original author: Abdullatif)
  • 1. 1. Want or need refers to
A) all the above
B) a mere desire not backed by ability and willingness
C) a list of need
D) a mere demand
  • 2. 2. An effective demand is a want
A) backed by the ability to pay
B) backed by want
C) backed by desire
D) None of the above
  • 3. 3. ________________ is the quantity of any good that producers are willing and able to offer for sale
A) Total production
B) Effective demand
C) Supply
  • 4. 4. The first law of demand States that
A) all things being equal, the higher the price, the lower the quantity demanded and vice versa
B) the lower the price, the lower the quantity supplied
C) the higher the price,the higher the demand
  • 5. 5. Who is the father of Economics?
A) John Stuart
B) Alferd Marshal
C) Adam Smith
D) A.C Pigou
  • 6. 6. Economics is regarded as both science and social science
A) Partially
B) True
C) Incorrect
D) False
  • 7. 7. Economics is regarded as science because
A) It adopts scientific methods
B) It adopts humanity method
C) It adopts philosophical method
D) It adopts socialist methods
  • 8. 8. Scarcity is defined as the
A) unlimited supply of resources
B) limited supply of resources
C) abundance supply of goods
D) None of the above
  • 9. 9. There are __________ major types of bar charts
A) five
B) four
C) six
D) three
  • 10. 10. ____________ is also known as forgone alternatives
A) Opportunity cost
B) Want
C) Choice
D) Scale of preference
  • 11. 11. There are _________ major branches of economics
A) four
B) Three
C) six
D) two
  • 12. 12. Exceptional demand is also known as
A) effective demand
B) abnormal demand
C) ineffective demand
D) normal demand
  • 13. 13. One of the following is a cause of exceptional demand
A) articles of ostentation
B) future expectation
C) articles of necessity
D) all of the above
  • 14. 14. A shift in demand is grouped into
A) seven
B) three
C) five
D) two
  • 15. 15. Natural disasters is one of the factors affecting supply
A) Not certain
B) false
C) true
D) Unknown
  • 16. 16. Decrease in the quantity demanded is caused by
A) Price of other services
B) price of other goods
C) price of the commodity
  • 17. 17. Income of the consumer is one of the factors affecting demand
A) false
B) Incorrect
C) true
D) partially
  • 18. 18. Decrease in the quantity supplied is caused by
A) cost of the production
B) taxation
C) price
D) number of producers
  • 19. 19. __________ occurs when a certain good can serve two or more purposes
A) Composite supply
B) Competitive demand
C) Joint demand
  • 20. 20. Articles of necessity is also known as
A) substandard goods
B) superior or giffen goods
C) inferior or giffen goods
D) real goods
  • 21. 21. _______________ refers to graph showing the possible combinations of two commodities that can be produced given the level of resources and technology.
A) Production
B) Production Possibility Boundary
C) Opportunity cost
D) Money cost
  • 22. 22. Points outside the PPC , are referred as ____________________
A) Non- feasible area
B) feasible area
C) Official use of resources
D) waste of resources
  • 23. 23. Points inside the PPC are said to be ___________________
A) non-feasible area
B) good area
C) feasible area
D) attainable
  • 24. 24. Points inside the PPC, indicate production is feasible but resources are
A) sufficient
B) efficiently used
C) efficient
D) not efficiently used
  • 25. 25. The ________________ can be regraded as the most frequently occurring number in a set of data.
A) Mode
B) mean
C) arithmetic mean
D) median
  • 26. 26. ___________________ is the satisfaction a consumer derives in consuming a good or service.
A) service
B) Bill
C) Commodity
D) Utility
  • 27. 27. _________________ is defined as the limited supply of resources which are used for the satisfaction of unlimited wants.
A) Scarcity
B) Want
C) Opportunity cost
D) Choice
  • 28. 28. ________________ is defined as a system of selecting one out of a number of alternatives
A) Want
B) Desire
C) Need
D) Choice
  • 29. 29. ____________________ refers to the total amount of money that is spent in order to acquire a set of goods and services
A) Money cost
B) Money matter
C) Monetary
D) Monument
  • 30. Rising wages is one of the causes of abnormal supply.
A) False
B) True
C) Unknown
D) Partly
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