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Economics ss2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The main concern of economists is to

a)

Allocate scarce resources to satisfy human wants

b)

Satisfy human wants

c)

Redistributed income between the rich and the poor

d)

Control the growth of population

2.

A business outfit is said to be a public limited company when it

a)

Is owned by the government

b)

Operates as public operations

c)

Is run by the public

d)

Sell its shares to the member of the public

3.

The gap between the demand and supply curve above the equilibrium price is

a)

Normal demand

b)

Excess supply

c)

Equilibrium quantity

d)

Abnormal demand

4.

Production resources can also be called

a)

Principle of production

b)

Factors of production

c)

Items of production

d)

Labour and material resources

5.

Which of the following sectors is most capital intensive?

a)

Insurance

b)

Petroleum

c)

Commerce

d)

Tourism

6.

Which of the following serves as the banker’s bank

a)

Commercial bank

b)

Mortgage bank

c)

The central bank

d)

Development bank

7.

Goods for which demand rises as income rises are

a)

complementary goods

b)

Inferior goods

c)

Normal goods

d)

Substitute goods

8.

A firm’s main aim is to

a)

Maximise profit

b)

Survive in business

c)

Increase in market share

d)

Satisfy the ambition of its managers

9.

A demand schedule shows the Quantities of goods that are

a)

Bought at given price at a time

b)

Produced at given price at a time

c)

Supplied at given price at a time

d)

Reserved for future consumption

10.

The factors of production which takes the initiatives in combining resources for production is known as

a)

Capital

b)

Land

c)

Entrepreneur

d)

Capital

11.

The type of demand that exist between torch light and battery is

a)

Competitive demand

b)

Complementary demand

c)

Composite demand

d)

Independent demand

12.

The production strategy used in an over-populated country is

a)

Import substitution

b)

Capital intensive

c)

Labour intensive

d)

First come,first serve

13.

One of the advantages of sole proprietorship over other forms of business organization is that it can

a)

Make very high profits

b)

Employ many workers

c)

Keep it affairs private

d)

Produce on a very large scale

14.

A cheque book is issued to customers of a bank operating a

a)

Savings account

b)

Time deposit account

c)

Current account

d)

Fixed deposit account

15.

A country whoe economy is bouyant is likely to have

a)

A weak currency

b)

Devaluation from time to time

c)

A strong currency

d)

Balance of payment problem

16.

What must be added to variable cost to give total cost?

a)

Average total cost

b)

Average variable cost

c)

Fixed cost

d)

Marginal cost

17.

what happens when the central bank increases the bank rate in an economy

a)

Borrowing is discouraged

b)

Customers increases their borrowing

c)

Banks can increase their lending

d)

Money supply increases

18.

What are inferior goods?These are goods that are

a)

Generally in short supply

b)

No longer in demand

c)

Whose demand falls as income increses

d)

Whose price falls as demand increases

19.

Find the median of the following set of scores 8,9,6,5,10

a)

9

b)

8

c)

6

d)

5

20.

Which of following best describes the mode?

a)

Observation with the highest frequency

b)

Average of two middle numbers

c)

Items that occupies the middle position

d)

Different of two extreme values