Second CAT Test on Economics
Class ss2
Objective Questions
Answer all
1. What is the definition of demand? a) The quantity of a product or service that consumers are willing
to buy at a particular price
b) The quantity of a product or service that producers are willing to sell
c) The total cost of producing a good
d) The amount of money consumers have
2. Which of the following is a factor that affects demand? a) Changes in income
b) Changes in technology
c) Government regulations
d) All of the above
3. Which of the following best describes the law of demand? a) As the price of a good increases, the
quantity demanded decreases
b) As the price of a good decreases, the quantity demanded remains constant
c) The demand for a good increases as its price increases
d) None of the above
4. What does an increase in consumer income generally do to demand? a) It increases demand for
normal goods
b) It decreases demand for inferior goods
c) It has no effect on demand
d) Both a and b
5. Which factor influences supply? a) The level of consumer income
b) Price of the good or service
c) Tastes and preferences of consumers
d) None of the above
6. Which of the following is the law of supply? a) As the price of a good increases, the quantity supplied
increases
b) As the price of a good decreases, the quantity supplied increases
c) As the price of a good decreases, the quantity supplied remains constant
d) None of the above
7. What happens when the supply of a good increases? a) The equilibrium price rises
b) The equilibrium price falls
c) The quantity demanded falls
d) The quantity supplied decreases
8. What is a component bar chart? a) A bar chart that shows parts of a whole
b) A bar chart with multiple bars of equal height
c) A bar chart that represents quantities over time
d) None of the above
9. In a bar chart, the horizontal axis represents: a) The quantity of the goods
b) The categories being compared
c) The prices of goods
d) The time period
10. Which of the following best describes a pie chart? a) A circular diagram that represents data in
sections proportional to the total amount
b) A diagram showing bars of equal width
c) A line graph showing change over time
d) A table showing numbers and percentages
11. What is the formula to calculate the angle of a sector in a pie chart? a) (Quantity of the sector / Total
quantity) × 360°
b) (Total quantity / Quantity of the sector) × 360°
c) Quantity of the sector × 180°
d) Total quantity × 90°
12. What does a multiple bar chart compare? a) The same quantity over different periods of time
b) Different quantities over the same period of time
c) Changes in the price of goods
d) Changes in demand
13. How do you calculate the total percentage of a pie chart? a) Add up the percentages of each sector
b) Subtract the largest percentage from 100
c) Use the formula for the angle of each sector
d) None of the above
14. Which of the following factors does NOT affect supply? a) Cost of production
b) Government subsidies
c) Income of consumers
d) Price of related goods
15. What does the law of supply suggest? a) The higher the price, the less the quantity supplied
b) The lower the price, the less the quantity supplied
c) The lower the price, the more the quantity supplied
d) The price has no effect on supply
16. Which of the following is a factor affecting demand? a) Technology
b) Expectations of future prices
c) Natural disasters
d) None of the above
17. How does a decrease in the price of a good affect the quantity demanded? a) It decreases the
quantity demanded
b) It increases the quantity demanded
c) It has no effect on the quantity demanded
d) It causes a shift in the demand curve
18. When constructing a bar chart, what does the height of the bars represent? a) The frequency of the
data
b) The category being compared
c) The time period for comparison
d) The cost of the good or service
19. Which of the following can cause a shift in the supply curve? a) A change in the price of inputs
b) A change in the price of the good
c) A change in the number of buyers
d) None of the above
20. In a multiple bar chart, what is represented by each bar? a) One category’s data over time
b) Different categories at one point in time
c) The same category over multiple periods
d) The total quantity of goods
Theory Questions
Answer 2 questions
1. Explain the meaning of demand and the law of demand.
2. Discuss two factors that affect supply and explain their impact.
3a.Define the term Equilibrium price.
3b what will be the effect when demand is below equilibrium point and when the supply is above
equilibrium equilibrium point.
