Angel International School 2 nd term Examinations Economics

Transcription

1 Angel International School 2 nd term Examinations Economics Grade -9 Part I 1. Which of the following represents the inelastic price elasticity of supply? a) P S = 1 b) P S = 0.5 c) P S = 1.5 d) P S = d 2. Which of the following supply curve represent the unitary price elasticity of supply? d a c b O 3. When the price of a product increased by 10% the quantity supplied increased by 30% so this a a) Supply of elastic value b) Supply of inelastic value c) Supply of unitary value d) Supply of perfectly inelastic value 4. When Price of a product increased from 100 to 120 the QS decreased from 120 to 130. So the P S is a) 0.2 b) 1 c) 0.4 d) Which factor determined the price elasticity of supply a) Time taken to produce b) Cost of altering supply c) Feasibility of storing d) All of the above 6. What is the formula of calculating P S a) P S= b) P S=

2 c) P S= d) P S= none of the above 7. Which point represents locative efficiency from the following diagram c b a d o 8. Which firm is experiencing productive efficient. a) The firm which is producing less unit of product with the highest b) The firm which is producing at lowest possible average cost c) The firm which is producing at highest possible average cost 9. Which economy rewards efficiency and punishes inefficiency a) Planned economy b) Mixed economy c) Marked economy d) Transition economy 10. In the diagram which movement shows an increase in productive efficiency Capital goods A B C D Quantity a. A to B b. B to C c. C to D d. A to D 11. Which product is provided by the market to the full a) Public good b) Private good c) Merit good

3 12. The example of public good is a) Education b) Defense 13. Examples of demerit good a) Cigarettes b) Light house c) Drugs d) Health care c) Education d) Street light 14. Which of the following is the example of negative externalities a) Educating the children b) Smoking the cigarettes c) Getting treatment for infectious diseases d) Maintaining a flower garden 15. The external cost is equal to a) Social + private cost b) Private + external cost 16. Which good id non-excludable and non-rivalry a) merit good b) private good 17. the social benefit is equal to a) private benefit + external benefit b) private cost + external cost 18. The example for transfer payment by government is a) Salary for government servants b) Pension scheme c) Social private cost d) Social external cost c) public good d) demerit good c) social private benefit d) private benefit external benefit c) Government tax 19. What is the term used to describe workers, specializing in particular tasks? a) Division of labor c) Flexibility b) Labor turnover d) Rationalization 20. Which is not a difficulty in barter system a) Easy to carry the goods b) Difficulties in measuring the value c) Absence of double coincidence of wants d) Difficulties in saving 21. The money enable the people to save which function of money does this describe a) Medium of exchange b) Store of value c) Unit of account d) Standard of deferred payment

4 22. Money has functions as well as characteristics which of the following is a characteristic of money a) Act as medium of exchange c) Durability b) Act as store of value d) Standard of deferred value 23. Which of the following used as money at earlier stage money a) Gold b) Silver c) Gold or silver d) Bones of animal 24. In which way government influences on private sector a) Taxing income and expenditure b) Providing subsidies c) Giving grants d) All of the above 25. The production of which types goods, given below, has to be financed by the government a) Capital b) Consumer 26. Which of the following is example for direct production a) A house wife farming for her own family b) A house wife farming for the market c) Merit d) Public c) Producing at a market 27. A farmer is producing in the purpose marketing. This is a a) Direct production c) Secondary production b) Indirect production d) Tertiary production 28. Advantage of specialization is a) Time consuming b) Boring c) More productivity d) High cost of production 29. Which is controlling the monetary policy of our country a) Commercial bank c) Merchant bank b) Central bank d) National savings bank 30. Which type of bank is providing current account facility a) Commercial bank b) Central bank c) Merchant bank d) National savings bank 31. Which accounting holder can use cheques for transactions a) Saving account holder c) Fixed account holder b) Current account holder

5 32. Which of the following is not a function of central bank a) Acts as a banker to the banker b) Acts as a banker to the commercial; banks 33. What is the function of central bank a) Controlling the money supply b) Issuing shares c) Raising taxes d) Deciding on the amount of central account to public c) Acts as a lender of last resort d) Acts as provider of current account to public 34. What is the function of central bank a) They are backed by gold b) They are durable c) They are generally acceptable d) They have intrinsic value 35. What is the main aim of a commercial bank a) To act as banker to the government b) To issue bank notes c) To make a profit d) To manage national debt 36. Which function performed by both commercial and central banks? a) Acting as bankers to the government b) Advising the government on a monetary policy c) Dealing in foreign exchange d) Fixing the main interest rate 37. For anything to be used as money, it must be a) A fixed value b) In fixed supply c) Legal tender d) Readily acceptable 38. Which is a major function of a commercial bank? a) Acting as the lender of last resort b) Collection direct and indirect taxes c) Issuing bank notes and coins d) Lending money to its customers 39. Which motion is most likely to increase the wish to open a saving account? a) To have cash immediately available

6 b) To prepare for future expenditure c) To satisfy essential needs d) To widen the present consumption choices 40. What is a function of a commercial bank a) Acting as a lender of last resort b) Deciding what is a legal lender c) Determining monetary policy d) Providing overdrafts Part 2 1. Answer all questions Market fails when they fail to allocate resources efficiently I. What are the reasons for the market failures? (5) II. A. What are the characteristics of public good (3) B. Write examples for the following (2) a. Public good b. Private good c. Merit good d. Demerit good III. A. differentiate between merit good and demerit good (3) B. Write two examples for negative externalities (2) 2. Money plays a significant role in all economies a) Explain why it is better for individual to use money rather them better (5) b) Describe the functions that commercial banks perform in an economy(5) c) Analyze why some individuals are more likely to borrow money than others(5) 3. A. i. Differentiate direct production and indirect production with examples? (2) ii. write 3 difficulties found in the barter system (3) B. i. write the function of money? (3) ii. Write some examples for money used in ancient time? (2) C. Write any four countries currency names (5)

7 4. A. i. Write the function of Central Bank (3) B. i. Write the features of current account(5) ii. Name two types of credit card(2) C. Which bank is encouraging people to save the money? Write the functions of this bank (5)