AIC Exam 1st Term Economics for SS 2 2022/2023
  • 1. 1. Want or need refers to
A) all the above
B) a list of need
C) a mere demand
D) a mere desire not backed by ability and willingness
  • 2. 2. An effective demand is a want
A) backed by want
B) None of the above
C) backed by the ability to pay
D) backed by desire
  • 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) A.C Pigou
B) John Stuart
C) Adam Smith
D) Alferd Marshal
  • 6. 6. Economics is regarded as both science and social science
A) True
B) Partially
C) Incorrect
D) False
  • 7. 7. Economics is regarded as science because
A) It adopts scientific methods
B) It adopts philosophical method
C) It adopts socialist methods
D) It adopts humanity method
  • 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) three
B) six
C) five
D) four
  • 10. 10. ____________ is also known as forgone alternatives
A) Scale of preference
B) Opportunity cost
C) Want
D) Choice
  • 11. 11. There are _________ major branches of economics
A) Three
B) four
C) two
D) six
  • 12. 12. Exceptional demand is also known as
A) abnormal demand
B) effective demand
C) ineffective demand
D) normal demand
  • 13. 13. One of the following is a cause of exceptional demand
A) articles of ostentation
B) articles of necessity
C) future expectation
D) all of the above
  • 14. 14. A shift in demand is grouped into
A) seven
B) three
C) two
D) five
  • 15. 15. Natural disasters is one of the factors affecting supply
A) Unknown
B) true
C) false
D) Not certain
  • 16. 16. Decrease in the quantity demanded is caused by
A) price of other goods
B) Price of other services
C) price of the commodity
  • 17. 17. Income of the consumer is one of the factors affecting demand
A) partially
B) false
C) true
D) Incorrect
  • 18. 18. Decrease in the quantity supplied is caused by
A) price
B) number of producers
C) cost of the production
D) taxation
  • 19. 19. __________ occurs when a certain good can serve two or more purposes
A) Competitive demand
B) Joint demand
C) Composite supply
  • 20. 20. Articles of necessity is also known as
A) real goods
B) superior or giffen goods
C) inferior or giffen goods
D) substandard 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) Opportunity cost
C) Money cost
D) Production Possibility Boundary
  • 22. 22. Points outside the PPC , are referred as ____________________
A) Non- feasible area
B) waste of resources
C) Official use of resources
D) feasible area
  • 23. 23. Points inside the PPC are said to be ___________________
A) feasible area
B) good area
C) non-feasible area
D) attainable
  • 24. 24. Points inside the PPC, indicate production is feasible but resources are
A) sufficient
B) efficient
C) efficiently used
D) not efficiently used
  • 25. 25. The ________________ can be regraded as the most frequently occurring number in a set of data.
A) median
B) arithmetic mean
C) mean
D) Mode
  • 26. 26. ___________________ is the satisfaction a consumer derives in consuming a good or service.
A) Commodity
B) service
C) Bill
D) Utility
  • 27. 27. _________________ is defined as the limited supply of resources which are used for the satisfaction of unlimited wants.
A) Want
B) Opportunity cost
C) Choice
D) Scarcity
  • 28. 28. ________________ is defined as a system of selecting one out of a number of alternatives
A) Choice
B) Need
C) Desire
D) Want
  • 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) Unknown
B) False
C) True
D) Partly
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