Advanced level 2025 North West regional mock Economics 1
Advanced level 2025 North West regional mock Economics 1
Economic theories are developed using the:
A. quantitative method.
B. inductive method.
C. deductive method.
D. inductive and deductive methods.
2. The shape of a concave production possibility curve can
best be explained by:
A) decreasing opportunity costs.
B) increasing returns.
C) increasing opportunity costs.
D) constant returns.
3. The provision of public and merit goods is guaranteed in
the:
A) socialist economic system.
B) laissez-faire economic system.
C) traditional economic system.
D) free-enterprise economic system.
4. Which of the following questions about production is
answered by combining factors in the most efficient
way?
A. What to produce?
B. For whom to produce?
C. Where to produce?
D. How to produce?
5. The characteristic of a public good that encourages some
consumers to avoid payment and become free riders is
known as:
A. non-rivalry.
B. non-excludability.
C. overproduction.
D. Underproduction.
Question 6 is based on table 1 below which shows the
inputs needed by a firm to produce different levels of
output.
Table 1
| Input | Output |
| 5 | 20 |
| 7 | 30 |
| 9 | 40 |
| 10 | 50 |
| 12 | 60 |
6. Over what range of output is the firm operating under
constant returns to scale?
A. 40 to 50.
B. 50 to 60.
C. 20 to 30.
D. 30 to 40.
Question 7 is based on table 2 which provides information
about the population of an imaginary country in 2020.
Table 2
| Population(Million) | Birth rate (per 000) |
Death rate (per 000) |
| 40 | 20 | 25 |
7. If 12,000 children died without reaching one year, what
is the infant mortality rate of this country?
A. 15‰
B. 12‰.
C. 0.3‰
D. 5‰
Question8 is based on figure 1 below.
Figure1.
8. A change from point A to C, caused by a rise in price
from 0𝑃 to 0𝑃1, can be descried as:
A. a decrease in demand.
B. a decrease in supply.
C. a contraction in demand.
D. a contraction in supply.
9. A black market can occur when:
A. the government sets price below the
equilibrium.
B. the government sets price above the
equilibrium.
C. supply is in excess of demand.
D. the consumption of a good is restricted.
10. If the prices of both goods fall, the budget line will:
A. shift inwards
B. shift outwards
C. be tangential to the indifference curve.
D. move to a point of equilibrium.
11. For a normal supply schedule, the quantity supplied is:
A. inversely related to price.
B. negatively related to price.
C. proportionately related to price.
D. directly related to price.
12. In a certain market, the demand for a good is given by
the function: 𝑄𝑑 = 60 – 4𝑃. If price increases from 5
FCFA to 10 FCFA, the price elasticity of demand will
likely be: —–.
A. 1
B. 0.75
C. 0.5
D. -4
13. Horizontal integration may be undesirable to consumers
because of:
A. rationalisation of the industry’s capacity.
B. the tendency towards monopoly.
C. product diversification
D. the need to have consent.
14. A footloose industry will likely locate:
A. near the source of raw materials.
B. anywhere.
C. close to the market.
D. in an area chosen by the government.
15. The structure of a company’s capital is highly geared
when:
A. preference shares are greater than ordinary shares.
B. ordinary shares are greater than debentures.
C. share capital is greater than loan capital.
D. loan capital is greater than share capital.
