PES firebrand class Economics mock 1
  • 1. 1. Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be
A) . The same as equilibrium supply
B) Determined later by government
C) Less than the equilibrium supply
D) None of these
E) Greater than equilibrium supply
  • 2. 2. Price control cannot work in Nigeria because
A)  too many things are produced in the country
B) the population is too large
C) control cannot work under military rule
D) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
  • 3. 3. The effect of the demand for product A caused by a change in the price of a product B is called?
A) cross-elasticity of demand
B) composite demand
C) Joint demand
D)  competitive demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) wants
B) scarcity
C) capital
D) resources
  • 5. 5. Land as a factor of production is made useful through the 
A) application of fertilizer
B) acts of nature
C) application of human effort
D) use of machines
  • 6. 6. In a free market economy, resources are allocated through the 
A) price mechanisms
B) trade union
C)  state planning committee.
D) government department
  • 7. 7. A consumer is in equilibrium when 
A) he maximizes his satisfaction from spending his income
B) he has consumed all he wants
C) his market Supply is equal to his market demand
D) the market is also in equilibrium  
  • 8. 8. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) joint supply
B) competitive supply
C) composite supply
D) market Supply
  • 9. 9. If an increase in the supply of beef increased the supply of hides, then beef and hides are in
A) composite supply
B) joint supply
C) competitive supply
D) joint demand
  • 10. 10. An increase in supply means that
A) there is a leftward shift of the supply curve
B)  more is sold at different prices
C) more is sold at the same price
D) there is a movement along the supply curve 
  • 11. 11. The study of economics is Important to every society because it______ 
A) . Helps in the utilization of scarce resources
B) Restores equilibrium between producers and consumers
C) Helps producers to know what to produce
D) Enables individuals to satisfy all their wants
  • 12. 12. A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
A) Jewelry
B)  Dress
C) Dress and Jewelry
D) Handbag and Jewelry.
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A)  Risk-bearing.
B)  Control.
C) Planning
D) Management.
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A)  A government distribution agencies
B) Retailers only.
C) The operation of price mechanism.
D) A central planning committee
  • 15. 15. One way of obtaining the median of a given data is to__________
A) Arrange the data in descending order and add each item to the least.
B) Sum the value and divide by the number of items.
C) Arrange the data in ascending order and subtract each item from the mean.
D) . Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
  • 16. 16. An increase in the rice harvest, all things being equal, may cause____________
A) Price to increase substantially.
B) Demand to fall substantially.
C) Price to fall substantially.
D)  Farmer's incomes to be more than doubled
  • 17. 17. What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
A)  Demand for the substitute of commodity X will decrease
B) Price of commodity X will increase
C)  Supply of both commodity X and its substitute will increase.
D) Demand for commodity X will decrease
  • 18. 18. An increase in market supply is caused by the following factors except________
A) A reduction in the cost of raw materials.
B) A favourable weather condition.
C)  An increase in the price of the commodity
D) An improvement in innovation and technology.
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Perfectly inelastic.
B) Fairly elastic.
C) Unitary elastic.
D) Inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A) An increase in supply.
B)  A decrease in quantity supplied
C)  An increase in quantity supplied
D) A decrease in supply
  • 21. 21.Government can increase farmers' incomes by__________
A)  Fixing maximum prices.
B) Encouraging them to produce surplus output.
C) Increasing taxes on inputs.
D) Fixing minimum prices
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $15.00
B) $166.67
C) $1.50
D) $150.03
  • 23. 23. If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
A)  surplus in the market
B) shortage in the in market
C) black market to come into operation
D) rationing to be introduced
  • 24. 24. If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
A) competitive supply
B) joint supply
C) market Supply
D) composite supply
  • 25. 25. A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?
A) 0.50 
B) 1.50
C)  2.00
D) 1.00
  • 26. 26. Which of the following factors is not a cause of change in demand? Changes in
A) the size of the population
B) price of the commodity
C) income distribution
D) taste and fashion
  • 27. 27. In perfectly elastic supply, the supply curve
A) slopes downward
B) is horizontal
C) slopes upward
D) Is vertical
  • 28. 28. The production of rice and yam on the same farmland is an example of
A) composite supply
B) market supply
C) competitive supply
D) unitory supply
  • 29. 29. If the government imposes a minimum price on a commodity
A) excess demand occurs
B) the market will be cleared in the short-run
C)  government regulation is no longer needed
D) market surplus occurs
  • 30. 30. In manufacturing, division of labour may be hindered by
A) low level of technology
B) increase in the export of goods
C) excess supply of labour
D)  excessive demand for the product
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