SSS2

Economics

1. In order to develop the banking habit of (a)elastic (b)unitary elastic(c)perfectly

rural dwellers, the traditional money lenders inelastic (d)perfectly elastic
should be 12. A decrease for a demand for a product x
(a)proscribed(b)legalized(c)subsidized(d)hea resulted for a decrease in demand for a
vily taxed product y. The demand for x and y is
2. If a commodity has a high marginal (a)derived(b)composite
utility,its market price will be (c)joint(d)competitive
(a)stable(b)high(c)zero(d)constant 13. Palm oil and palm karnel have
3. All rate of interest in a country are (a)competitive supply(b)excess supply
influenced by the (a)bank rate (b)population (c)joint supply (d)composite supply
growth rate(c)wage rate (d)mortgage rate 14. If a 20% rise in the price of whisky lead to a
4. Goods which have to be paid for are known 30% increase in quantity demanded of
as (a)physical goods (b)economic schnapps,the cross elasticity of demand
goods(c)free goods(d)intangible goods is(a)3.0 (b)2.5(c)2.3(d)1.5
5. The demand for a money is described as a 15. The resources used in production are
(a)competitive demand(b)joint called(a)variable input(b)factors of
demand(c)derived demand(d)composite production (d)fixed input
demand 16. An efficient weapon used in solving dispute
6. The value of money is affected by the between employers and employees is (a)co-
(a)Speculative motive(b)price level(c) operative(b)collective bargaining (c)display
precautionary motive (d)intervention of of placards (d)legal action
development bank 17. The best way of combating demand-pull
7. General rise in price level induced by inflation is to(a)increase income
increased price of inputs is referred to taxes(b)reduced income taxes (c)input
as(a)run away inflation(b)cost-push import duties(d)increase salaries and wages
inflation(c0demand pull inflation(d)I ported 18. Which of the following is not a reason for
inflation holding a money?
8. An excise duty imposed on (a)ostentation(b)speculation(c)transactions
goods(a)smuggled into the (d)precautionary
country(b)manufactured locally(c)imported 19. One of the function of central bank
into the country(d)seized by custom officials (a)production of goods(b)issuing of
9. In open market operations, what the central currency(c)presenting budget(d)printing of
bank sells or buys are(a)shares(b)debentures cheque books
(c)securities(d)equities 20. The type of demand that exit between
10. Any price below the equilibrium price will torchlight and battery is(a)competitive
lead to (a)increase in supply(b)excess demand(b)complementary
demand(c)equality of demand and demand(c)composite demand(d)derived
supply(d)decreased in demand demand
11. If a 6% decrease result in a 6% decrease in 21. Interaction of supply and demand for labors
quantity supply, it can be regarded as determine
(a)production(b)income(c)wage(d)profit
 22. Choice is necessitated by (a)demand and The output and cost of production of rice (in bag)
supply (b)cost of production(c)production are presented in the table below. Use the
possibility curve(d)scarcity of resources information in the table to answer the questions that
follow.
23. At a co-efficient of price elasticity of supply
of 0.5,supply is (a)perfectly Output of rice (in bags) 0 1 2
inelastic(b)inelastic(c)perfectly
Total variable cost ($) 0 5 7
elastic(d)elastic
24. Government fixing of price below the Total cost ($) 7 12 14
equilibrium point is aimed at protecting the Calculate the:
(a)sellers(b)industries(c)distributors(d)consu (i)Average fixed cost at output levels 0,2 and 4
mers (ii)Marginal cost at all levels of output
25. Manufacturing involve the process of (b) If the price of a bag of rice were $10, calculate
(a)making goods available (b)providing the profit/loss at all levels of output.
(c )At what output level(s) is the maximum profit
finished products(c)changing items to new
made?
states(d)producing capital goods. QUESTION 3
26. Disposable income is total income(a)less Given the demand function for commodity x as
tax(b)divided by tax(c)plus tax(d)multiplied Qd=12-2p
by tax (a)Use the demand function to complete the table
27. Which one of the following serve as a below
banker’s bank? (a)commercial banks(b)The
P 6 5 4 3 2 1 0
mortage bank(c)The central
bank(d)Development bank Qd
28. Which of the following is a middle man in
the chain of distribution (a)An entrepreneur
(b)A producer(c)A banker (d)A retailer (b)Draw the individual’s demand curve
29. What must be added to variable cost to give (c)What is the maximum quantity the individual can
total cost (a)Average total cost(b)Average buy of commodity X per unit of time?
(d)What id the relationship between quantity
variable cost(c)fixed cost(d)Marginal cost
demanded and price in the function Qd=f(p)?
30. Which of the following is an example of
direct tax (a)Import duties (b)Income tax QUESTION 4
(c)Export duties(d)Purchase tax (a)Describe each of the following
(i)The production possibility curve
(ii)Price mechanism
(b)(i)Give three factors affecting supply
SECTION B
THEORY QUESTION 5
Instruction: Answer any four questions. 6(a)State the three motive for holding money
(b) Distinguished between the following
QUESTION 1
(i)Wants and effective demand
(a) Explain the following cost concepts (1) total
(ii)Demand schedule and demand curve
cost
(ii) Change in demand and change in quantity
(11)long run cost
demand
(111)marginal cost
(b) Explain the term revenue

QUESTION 2