Ordinary level 2026 South West mock Economics 1
Ordinary level 2026 South West mock Economics 1
1.Economic goods and free goods are similar
in that:
A. Both are scarce
B. Both command a price
C. Both have opportunity cost
D. Both yield satisfaction
2.Internal economies of scale result from an
expansion in the size of:
A. The industry
B. The firm
C. The market
D. The cost structure
3.When the value of Terms of Trade is
greater than 100 it means it is:
A. Favorable
B. Unfavorable
C. Balanced
D. Equilibrium
4.Cost borne by the society as a result of an
economic activities is called:
A. Total cost
B. Explicit cost
C. External cost
D. Overhead cost
5.The velocity of money means:
A. The rate at which it changes hands
B. The quantity and services it can buy
C. The quantity available for the society
D. The rate at which it can be
exchanged for other currencies
6.Which of the following Does Not explain
the abnormal demand curve?
A. Goods of ostentation
B. Income effect
C. Expectation of future change in price
D. Inferior goods
7. Which of the following enterprises is
built on democratic principle?
A. Public limited companies
B. Private limited companies
C. Public corporations
D. Cooperative societies
8.Which of the following is a determinant of
elasticity of supply?
A. Cost of production
B. Taxes and subsidies
C. Price of other goods
D. Technology
9. The money value of all goods and
services produced within a country using
her resources is called;
A. Net national product
B. Total domestic product
C. Gross domestic product
D. Gross national product
10. In which market structure is there a barrier to
entry of new firms?
A. Perfect competition
B. Imperfect competition
C. Monopolistic competition
D. Oligopoly
11. Which of the following is responsible for the
allocation of resources in a socialist economic
system?
A. The forces of demand and supply
B. The central planning committee
C. Price mechanism
D. Private producers
12. Given the scores: 2,16,4,12,4,8,6,2,10, and 2.
The median score is:
A. 5
B. 14
C. 6.6
D. 2
13. Which branch of economics studies the
behavior of individual units?
A. Positive economics
B. Normative economics
C. Micro economics
D. Macro economics
14. Direct dealing is most ideal when:
A. The commodity is illegal
B. The consumer is too far from the
manufacturer
C. The commodity is highly perishable
D. The commodity is of low value
15. Consider the following statistics as data for
this question:
– Total population = 5 million people
– Young(0-14years) = 900 thousand
– 0ld (60+ years) = 300 thousand
– Adults (15-59 years) = 300 thousand
The dependency ratio is:
A. 4 %
B. 4: 1
C. 4
D. 1: 4
