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PES SS 1 Economics 3rd Test
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  • 1. ............ defined Economics as the practical science of production and distribution of wealth.
A) A.C. Pigou
B) Adam Smith
C) John Stuart Mill
D) Alfred Marshal
  • 2. Economics is regarded as a social science because it studies
A) Human behaviour
B) Human relation
C) Human interaction
D) Human development
  • 3. Economics Is also regarded as a social science because it adopts the .......
A) Supply method
B) Distribution method
C) Production method
D) Scientific method
  • 4. Scale of preference is the list of wants arranged in the order of their ......
A) Choice
B) Satisfaction
C) Want
D) Importance
  • 5. The importance of scale of preference include the following except
A) Satisfaction of wants
B) Ranking of needs
C) Identification of highest priority
D) Optimum allocation of resources
  • 6. Human wants are many and we cannot satisfy all of them because of our ......
A) Unlimited resources
B) Unutilized resources
C) Unallocated resources
D) Limited resources
  • 7. Opportunity cost is defined as an expression of cost in terms of......
A) Satisfaction of human wants
B) Expression of cost
C) More pressing needs
D) Foregone alternatives
  • 8. Opportunity cost can also be called
A) Supply cost
B) True cost
C) Buying cost
D) Alternative cost
  • 9. There are........ branches of Economics
A) 7
B) 4
C) 8
D) 9
  • 10. ...........is the most commonly used tool for economic analysis
A) Charts
B) Histogram
C) Table
D) Graphs
  • 11. ....... Is defined as a diagram showing a functional relationship between two variables
A) Graphs
B) Histogram
C) Chart
D) Table
  • 12. The _____ of a graph shows what it is all about.
A) X-axis
B) Title
C) Y-axis
D) Slope
  • 13. ...... Is a graphical representation of frequency distribution
A) Graph
B) Histogram
C) Table
D) Chart
  • 14. ..........refers to the arrangement of data or information in tabular form to reflect their frequency
A) Arithmetic mean
B) Measure of central tendency
C) Frequency score
D) Frequency distribution
  • 15. ..... .... is the problem people encounter in the society while attempting to satisfy their numerous wants
A) Basic economic problems
B) Basic demand problems
C) Basic society problems
D) Basic life problems
  • 16. The following are the problems faced by the producers in the society except
A) For whom to produce
B) How to produce
C) When to produce
D) What to produce
  • 17. Consumer's income is one of the factors that determine
A) For whom to produce
B) When to produce
C) What to produce
D) How to produce
  • 18. Technique of production is one of the factors that determine
A) What to produce
B) For whom to produce
C) When to produce
D) How to produce
  • 19. Satisfaction of wants is one of the factors that determine
A) When to produce
B) How to produce
C) For whom to produce
D) What to produce
  • 20. As soon as what to produce is established, another basic economic problem that will arise is
A) When to produce
B) How to produce
C) What to produce
D) For whom to produce
  • 21. Macro economics deals with......
A) larger aggregate of the economy
B) smaller aggregate of the economy
C) units or aggregate of the economy
  • 22. One advantage of Macro economics Is that....
A) there is no employment
B) there is unavailability of goods and services
C) there is full employment
  • 23. One of the disadvantage of Macro economics Is .....
A) monetary policies
B) deficiency in aggregate demand
C) negative grouping data
  • 24. Other branches of economics include the following except
A) science economics
B) pure economics
C) applied economics
  • 25. Micro economics deals with
A) smaller units of the economy
B) bigger units of the economy
C) marketing units of the economy
  • 26. A table is the systematic arrangements of ....
A) analysis
B) economics
C) information
  • 27. Rows and columns are used for...
A) graph
B) data
C) table
  • 28. The following are characteristics of a table except
A) a table must have a title
B) a table must be easy to understand
C) a table must be very simple
  • 29. .....shows functional relationship between two variables
A) diagram
B) graphs
C) table
  • 30. The following are examples of graph except
A) line graphs
B) table graph
C) pie graphs
  • 31. ...... could be straight or curve.
A) pie graph
B) bar graph
C) line graph
  • 32. ..... provide basis for comparing variables provided in the table.
A) diagram
B) graphs
C) table
  • 33. ......is a simple circle of any convenient size.
A) graph
B) pie chart
C) bar chart
  • 34. ......is made up of bars of rectangle
A) pie chart
B) bar chart
C) graph
  • 35. ......is a graphical representation of frequency distribution.
A) pie chart
B) histogram
C) pictogram
  • 36. ......is used when the data involved are of two variables.
A) simple bar chart
B) component bar chart
C) multiple bar chart
  • 37. The arithmetic mean is also popularly referred to as the
A) mean
B) mode
C) median
  • 38. Measure of central tendency is also called
A) measure of evaluation
B) measure of distribution
C) measure of location
  • 39. Median is ....of extremes values
A) extremely affected by
B) affected by
C) not affected by
  • 40. ......is the middle value.
A) median
B) mean
C) mode
  • 41. .....is the quantity of goods and services that the consumer are willing and able to buy
A) demand
B) supply
C) want
  • 42. ......is a mere desire for a commodity.
A) supply
B) demand
C) want
  • 43. ......states that the higher the price,the lower the quantity of goods that will be demanded
A) the law of demand
B) the law of need
C) the law of supply
  • 44. The law of demand hold under the following assumptions except
A) the habits of consumers remain unchanged
B) the consumer's income remains constant
C) the consumer's income change
  • 45. There are.... types of demand
A) 2
B) 3
C) 4
  • 46. .......is a table showing the relationship between prices and the quantity of that commodity demanded
A) demand schedule
B) demand curve
C) demand supply
  • 47. ......is a graphical representation of the information contained in the demand schedule
A) demand supply
B) demand curve
C) demand schedule
  • 48. The following are the factors affecting demand except.....
A) quantity of the commodity
B) income of the consumer
C) price
  • 49. .....is the quantity of any commodity that the producer are willing to offer for sale
A) want
B) supply
C) demand
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