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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) a list of need
B) a mere demand
C) a mere desire not backed by ability and willingness
D) all the above
  • 2. 2. An effective demand is a want
A) backed by desire
B) backed by want
C) None of the above
D) backed by the ability to pay
  • 3. 3. ________________ is the quantity of any good that producers are willing and able to offer for sale
A) Supply
B) Effective demand
C) Total production
  • 4. 4. The first law of demand States that
A) the lower the price, the lower the quantity supplied
B) the higher the price,the higher the demand
C) all things being equal, the higher the price, the lower the quantity demanded and vice versa
  • 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) Incorrect
B) False
C) Partially
D) True
  • 7. 7. Economics is regarded as science because
A) It adopts humanity method
B) It adopts scientific methods
C) It adopts socialist methods
D) It adopts philosophical method
  • 8. 8. Scarcity is defined as the
A) abundance supply of goods
B) unlimited supply of resources
C) None of the above
D) limited supply of resources
  • 9. 9. There are __________ major types of bar charts
A) six
B) three
C) four
D) five
  • 10. 10. ____________ is also known as forgone alternatives
A) Choice
B) Want
C) Opportunity cost
D) Scale of preference
  • 11. 11. There are _________ major branches of economics
A) six
B) four
C) two
D) Three
  • 12. 12. Exceptional demand is also known as
A) abnormal demand
B) ineffective demand
C) effective demand
D) normal demand
  • 13. 13. One of the following is a cause of exceptional demand
A) articles of necessity
B) future expectation
C) articles of ostentation
D) all of the above
  • 14. 14. A shift in demand is grouped into
A) two
B) seven
C) three
D) five
  • 15. 15. Natural disasters is one of the factors affecting supply
A) true
B) false
C) Not certain
D) Unknown
  • 16. 16. Decrease in the quantity demanded is caused by
A) price of the commodity
B) Price of other services
C) price of other goods
  • 17. 17. Income of the consumer is one of the factors affecting demand
A) true
B) false
C) Incorrect
D) partially
  • 18. 18. Decrease in the quantity supplied is caused by
A) cost of the production
B) number of producers
C) taxation
D) price
  • 19. 19. __________ occurs when a certain good can serve two or more purposes
A) Joint demand
B) Composite supply
C) Competitive demand
  • 20. 20. Articles of necessity is also known as
A) real goods
B) superior or giffen goods
C) substandard goods
D) inferior or giffen 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) waste of resources
B) feasible area
C) Non- feasible area
D) Official use of resources
  • 23. 23. Points inside the PPC are said to be ___________________
A) good area
B) non-feasible 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) not efficiently used
D) efficient
  • 25. 25. The ________________ can be regraded as the most frequently occurring number in a set of data.
A) mean
B) arithmetic mean
C) Mode
D) median
  • 26. 26. ___________________ is the satisfaction a consumer derives in consuming a good or service.
A) Bill
B) Commodity
C) service
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) Need
B) Desire
C) Want
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) Monument
C) Monetary
D) Money matter
  • 30. Rising wages is one of the causes of abnormal supply.
A) False
B) True
C) Partly
D) Unknown
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