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) Less than the equilibrium supply
B) None of these
C) Determined later by government
D) . The same as equilibrium supply
E) Greater than equilibrium supply
  • 2. 2. Price control cannot work in Nigeria because
A) while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
B)  too many things are produced in the country
C) control cannot work under military rule
D) the population is too large
  • 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)  competitive demand
C) composite demand
D) Joint demand
  • 4. 4. Which of the following is central to the definition of Economics?
A) scarcity
B) wants
C) resources
D) capital
  • 5. 5. Land as a factor of production is made useful through the 
A) acts of nature
B) application of fertilizer
C) use of machines
D) application of human effort
  • 6. 6. In a free market economy, resources are allocated through the 
A) government department
B) price mechanisms
C) trade union
D)  state planning committee.
  • 7. 7. A consumer is in equilibrium when 
A) he has consumed all he wants
B) his market Supply is equal to his market demand
C) he maximizes his satisfaction from spending his income
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) market Supply
B) joint supply
C) composite supply
D) competitive supply
  • 9. 9. If an increase in the supply of beef increased the supply of hides, then beef and hides are in
A) joint demand
B) competitive supply
C) composite supply
D) joint supply
  • 10. 10. An increase in supply means that
A) more is sold at the same price
B)  more is sold at different prices
C) there is a leftward shift of the supply curve
D) there is a movement along the supply curve 
  • 11. 11. The study of economics is Important to every society because it______ 
A) Helps producers to know what to produce
B) Enables individuals to satisfy all their wants
C) . Helps in the utilization of scarce resources
D) Restores equilibrium between producers and consumers
  • 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 and Jewelry
C)  Dress
D) Handbag and Jewelry.
  • 13. 13. The distinguishing function of an entrepreneur is_______

    .
A) Planning
B)  Control.
C) Management.
D)  Risk-bearing.
  • 14. 14. When a commodity market operates without government interference, commodities are distributed through_______
A)  A government distribution agencies
B) A central planning committee
C) The operation of price mechanism.
D) Retailers only.
  • 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 fall substantially.
B) Price to increase substantially.
C)  Farmer's incomes to be more than doubled
D) Demand to fall substantially.
  • 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)  Supply of both commodity X and its substitute will increase.
B) Price of commodity X will increase
C) Demand for commodity X will decrease
D)  Demand for the substitute of commodity X will decrease
  • 18. 18. An increase in market supply is caused by the following factors except________
A) An improvement in innovation and technology.
B) A favourable weather condition.
C)  An increase in the price of the commodity
D) A reduction in the cost of raw materials.
  • 19. 19. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
A) Perfectly inelastic.
B) Unitary elastic.
C) Fairly elastic.
D) Inelastic.
  • 20. 20. The leftward shift in the supply curve for a commodity indicates_________
A)  An increase in quantity supplied
B) A decrease in supply
C)  A decrease in quantity supplied
D) An increase in supply.
  • 21. 21.Government can increase farmers' incomes by__________
A) Fixing minimum prices
B) Increasing taxes on inputs.
C)  Fixing maximum prices.
D) Encouraging them to produce surplus output.
  • 22. 22. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
A) $15.00
B) $1.50
C) $150.03
D) $166.67
  • 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) rationing to be introduced
B) shortage in the in market
C)  surplus in the market
D) black market to come into operation
  • 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) composite supply
B) competitive supply
C) joint supply
D) market 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) price of the commodity
B) income distribution
C) taste and fashion
D) the size of the population
  • 27. 27. In perfectly elastic supply, the supply curve
A) is horizontal
B) slopes upward
C) Is vertical
D) slopes downward
  • 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) market surplus occurs
B) excess demand occurs
C)  government regulation is no longer needed
D) the market will be cleared in the short-run
  • 30. 30. In manufacturing, division of labour may be hindered by
A) low level of technology
B)  excessive demand for the product
C) excess supply of labour
D) increase in the export of goods
Created with That Quiz — where test making and test taking are made easy for math and other subject areas.