April 23, 2024

PARKOSO SHS economics mock questions

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economics mock questions

economics mock questions

SHS economics mock questions

Economics mock questions: The mock question for economics is designed to provide real examination conditions in advance.

PAPER 1: Objectives

1. The fundamental economic problem in every society is
A. The large of the unemployed.
B. Inadequate supply of money.
C. Corruption and mismanagement.
D. Limited supply of productive resources.

 

2. A point X inside a production possibility curve indicates that
A. Resources are fully utilized.
B. The country is poor.
C. Some resources are idle.
D. Resources are not available.

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3. The major employer of labour in developing countries is the.
A. Tertiary sector.

B. Secondary sector.
C. Primary sector.
D. Industrial sector.

 

4. The desire for profit is a major feature of
A. Traditional economy.
B. Mixed economy.
C. Market economy.
D. Command economy.

 

5. The wages of group of workers n dollars are stated below: 40, 30, 70, 20, 10, 10, 80, 30 and 10. What is the mean wage?
A. $35 B. $36
C. $37 D. $38

SHS Economics mock questions

6. If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be
A. Parallel to the quantity axis.
B. Parallel to the price axis .
C. Negatively sloped.
D. Positively sloped.

 

7. If the demand function is Qd = 0.5p + 20, calculate the quantity demanded when price is
$15.00.
A. -$27.50 B. -$12.50
C. $12.50. D. $27.50

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8. If less of s goods is bought as one’s income increases, such a goods are
A. Normal goods B. Luxury goods
C. Necessity goods D. Inferior goods.

9. The demand for coffee and tea is a
A. Joint. B. Competitive
C. Composite D. Derived.

 

10. What effect will an increase in the supply of fish have on the meat market?
A. fall in equilibrium price and quantity
B. an increase in equilibrium price and quantity
C. an increase in equilibrium price and a fall in quantity
D. both equilibrium price and quantity remain unchanged.

 

SHS Economics mock questions

11. Which of the following factors is not a condition for a change is supply of a
commodity?
A. Improved technology
B. Cost of production
C. The price of the commodity
D. Government tax policies.

 

12. Supply of agricultural product is likely to be elastic in the
A. Intermediate period
B. Long run
C. Market period
D. Short run.

 

13. Two commodities X and Y are in jointly supplied when
A. X is a by-product of Y
B. X and Y are product of the same firm

C. increase in quantity of X leads to decrease in Y
D. X and Y cannot be produced in the same process.

14. The table above illustrates the law of
A. Diminishing returns
B. Diminishing marginal productivity.
C. Diminishing marginal utility
D. Variable proportion.

 

15. When the price of a good is above the equilibrium, there will be
A. Shortage B. Surplus occurs.
C. Unemployment D. Inflation

 

SHS Economics mock questions

16. What happens when a minimum price is imposed in a market?
A. shortage occurs

B. surplus occurs
C. the market maintains its equilibrium.
D. many firms will close down.

 

17. When an increase inputs leads to a more than proportionate increase in output, there is

A. decreasing returns to scale
B. increase in marginal product
C. Increasing returns to scale
D. constant returns to scale.

 

18. The short-run in production is the time period when
A. Techniques of the production can easily be changed
B. All factors of production are variable
C. At least a factor is fixed while others are variable
D. Variable factors cannot be changed.

 

The table shows the short-run cost of a firm
Use it to answer question 19

19. Calculate the value Q
A. $350 B. $340
C. $360 D. $370

 

20. A cost of production that is positively related to the output is the
A. Total fixed cost B. Average fixed cost.
C. Variable cost D. Social cost.

SHS Economics mock questions

21. ln perfect competition, the average revenue curve of a firm is
A. Below the marginal revenue curve
B. Downward shopping
C. The marginal revenue curve
D. Convex to the origin.

22. Which of the following means of funding a business is very reliable and cheap?
A. Bank loans. B. Loans from friends
C. Plough back profit D. Debentures

23. Government in most cases influences the location of firms to
A. To discourage private investors
B. Ensure equitable distribution
C. Reduce cost of production
D. Make the firms enjoy economies of scale.

24. Middlemen are made up of a
A. Manufacturers, wholesalers and consumer
B. Manufacturers, wholesalers and retailers
C. Wholesalers, retailers and hawkers
D. Wholesalers, retailers and consumers.

 

25. The Malthusian theory of population was proved wrong because
A. The practice of subsistence farming was encouraged
B. Malthus view was seen as an exaggeration
C. New lands and new method of production were discovered
D. Developing countries adopted birth control method.

 

SHS Economics mock questions

26. Human development can be improved if
A. Banks gives more loans to businesses men
B. Large family size are encouraged
C. General education and training is encouraged
D. It is handled by private sectors only.

27. The use of interest rates to control money supply is a
A. Monetary policy B. Control policy
C. Development policy D. Fiscal policy

28. Agricultural productivity may increased if
A. Educational institute are established in rural areas
B. Commercial banks are established in rural areas
C. More infrastructural facilities are provided in rural areas
D. Labour intensive method of agriculture is encouraged.

 

29. A country is described as industrialized if
A. The contribution of industries to national income is high.
B. Traditional and modern sectors coexist
C. The country adopts imports promotion strategy
D. Primary industries dominate the economy.

30. Which of the following is a major advantage of establishing a tomato processing factory in a
country?
A. Local consumption will decrease
B. More unskilled labour will be employed
C. Foreign exchange will be conserved
D. It will attract more tourists

 

SHS Economics mock questions

31. The total value of goods and services produced within the borders of a country is
A. Net national product
B. Gross domestic product
C. Net domestic product
D. Gross national product.

32. Which of the following item is not considered as a transfer payment?
A. Pension pay
B. Government subsidy
C. Students grant
D. Doctors salary.

 

33. Which if the following factors will not underestimate the national income?
A rapid decrease in prices
B. Increase subsistence production
C. Practice of specialization of labour
D. Increase in value of service not paid for

34. Which of the following is true of the value of money? It;
A. is positively related to the price level
B. depends on the value of people attach to it. C. is determined by the Government
D. is inversely related to the price level.

35. The motive of holding money to meet unforeseen events is termed
A. Precautionary demand
B. Transaction demand
C. Liquidity demand
D. Speculative demand.

 

SHS Economics mock questions

36. An increase in the price of factor inputs may be result in
A. Demand-pull inflation
B. Stagflation
C. Open inflation
D. Cost-push inflation

37. Insurance companies are similar to commercial banks in that way
A. Compensate their costumers for losses
B. Act as lender for of last resort
C. Help in maintaining monetary stability in a nation
D. Help In mobilizing savings for investment.

38. What happens when the central bank increase the rate?
A. Amount of borrowing increase
B. Amount of borrowing decrease
C. Supply of money increase
D. Commercial banks are not affected.

39. Citizens are protected from Government arbitrariness in taxation by the canon of
A. Flexibility B. Elasticity
C. Economy D. Certainty.

40. In a period of unemployment and falling in
prices, government should adapt
A. Zero-based budget B. Budget deficit

C. Balanced budget D. Surplus budget.

 

SHS Economics mock questions

41. In most developing countries, a large percentage of the labour is engaged in
A. Trading B. Mining
C. Agriculture D. Manufacturing.

42. In most underdeveloped countries development plans do not achieve their objective
due to
A. Poor coordination between local and national governments
B. Exportation of more primary products
C. Lack of Educational institutions in those countries
D. Urban and rural migration of citizens.

43. Balance of trade involves exchange
A. Goods only B. Service only
C. Goods and service D. Goods and capital.

44. An improvement in a country’s terms of trade means that the
A. Nation can export more services
B. Nation receipt on export is equal to payment on import.
C. Nations export exceeds imports
D. Nation imports exceeds exports

45. Devaluation of currency may not correct a balance of payment deficit in the demand of
export is
A. Perfectly inelastic
B. Perfectly elastic
C. Fairly elastic
D. Unitary elastic

 

SHS Economics mock questions

46. One measure for balancing a country’s balance of payments deficit is through
A. Export diversification
B. Import substitution
C. Short term borrowing from IMF
D. International borrowing from commercial banks.
47. The major achievement of the economic community of West African states (ECOWAS) is that it has
A. Made capital more mobile

B. Made possible the use of common currency.
C. Increase member allegiance to former colonial ministers
D. Widened the market for goods produced

 

48. Which of the following institutions is concerned with the expanding developing countries commodity trade?
A. World trade organization (WTO)
B. United nation conference on trade and development (UNCTAD)
C. Economic commission for Africa (ECA)
D. Africa development bank (AFDB).

49. Exploitation of Forrest resources becomes a major problem when
A. Community fight over ownership
B. They are not renewed
C. They are neglected
D. The supply is fixed in long- run.

 

50. Natural resources that are renewable are found in the
A. Mining sector
B. traditional sector
C. Agricultural sector
D. Secondary sector

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PAPER 2 ESSAY TEST

SECTION A: Answer ONE question ONLY from this section

1. The information in the table below represents of a country in year. Use it to answer the questions that
follow.

Using the data above, calculate;
(a) Balance of trade.
(b) Invisible trade balance.
(c) Balance on current account.

 

SHS Economics mock questions

2. The table below shows the revenue situation of a farmer who produces maize. Use it to answer the
questions that follow.

(a) At each level of output, calculate the farmer’s Marginal Revenue (MR).
(b) What is the price of a bag of maize? Explain your answer.
(c) In what market structure is the farmer operating? Give a reason for your answer.

 

SECTION B Answer ONLY THREE questions from this section

3. a Outline two features each of
(i) Capitalist economic system
(ii) Socialist economic system
b Explain any four weaknesses of capitalist economic system.

 

4. a. What is an Industry?
b. Explain the following:

(i) Division of labour,
(ii) Economies of scale.
c. Outline any four internal economies of scale.

 

SHS Economics mock questions

5. a. Distinguish between:

(i) cost of living and standard of living
(ii) economic growth and economic development
b. Discuss any three conditions that make a country less developed.

 

SHS Economics mock questions

6. a. Distinguish between the following pairs of concepts:
(i) elastic demand and inelastic demand;
(ii) income elasticity of demand and cross elasticity of demand.
b. Using diagrams, explain how an increase in price will affect the total revenue of a
producer if demand for his product is ;
(i) price elastic,
(ii) price inelastic.

 

SHS Economics mock questions

7. a. Distinguish between:

(i) a growing population and a declining population;
(ii) over-population and under-population.
b. Explain any four disadvantages of a rapidly growing population in an economy.

 

8. a. What is public debt?
b. Outline any three reasons why countries borrow.
c. Highlight any three effects of a huge national debt on the economy of a
country.

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