1. Man is termed an economic animal because he (A) has the ability to understand economic activities.

(B) lives a life which is governed by economic principles. (C) studies economics in order to live a comfortable life. (D)utilises his ability to satisfy his wants from the gifts of nature.

2. Which one of the following is usually associated with simple societies? (A) International trade (B) Money economy (C) Subsistence cultivation (D)Surplus output

3. Direct satisfaction of wants entailed (A) obtaining goods through barter. (B) paying only for goods of a high quality. (C) producing ones own goods and services. (D)producing goods through a process of specialisation.

4. Barter may be described as the (A) bargaining for quality goods at cheaper prices. (B) credit sale and purchase of goods. (C) exchange of goods for goods.

(D) exchange of goods for money.

5. Which one of the following person is a producer of goods? (A) Hairdresser (B) Manager (C) Manufacturer (D)Surveyor

6. Consumers are those individuals who (A) buy their goods from a consumers co-operative society. (B) consume all goods produced by manufacturers. (C) provide goods and services for our satisfaction. (D)utilise the goods and services provided to satisfy wants.

7.

Consumer goods are those which (A) are used for personal satisfaction of wants. (B) consumers have a strong preference for. (C) most consumers ca afford to purchase. (D)will be used to produce further goods.

8. The opportunity cost of a good is (A) its original cost to the purchaser. (B) the cost of manufacturing the good. (C) the alternative which is foregone in order to obtain it. (D)the value of the goods for which it could be exchanged.

9. Which of the following are features of the private sector? I. State control of goods and services produced

II. Ownership and control of businesses by private individuals III. Control of some of the countrys productive resources by individuals IV. Ownership of some business enterprises by overseas investors (A) I only (B) I and II only (C) II and III only (D)II, III and IV only

10.For what reasons may the government decide to take over a privately owned business undertaking?

I. The undertaking provides a most important public utility. II. Government desires to own and control the countrys natural resources. III. Most of the undertakings profits are being repatriated. IV. The undertaking has no monopoly power within the economy. (A) I and II only (B) II and III only (C) I,II and III only (D)I,II,III and IV

11.Which one of the following business units belongs to the private sector? (A) Municipal undertakings (B) Nationalised undertakings (C) Public corporations (D)Public limited companies

12.The public sector comprises (A) a body of public corporations, public companies and municipal undertakings. (B) a combination of public companies and public corporations. (C) an association of all public companies within the country. (D)central and local government organisations and state corporations.

13.Which one of the following is NOT extractive production? (A) Mining (B) Quarrying (C) Construction (D)Fishing

14.Under which type of production would you classify the work of the shopkeeper? (A) Extractive (B) Construction (C) Manufacturing (D)Service

15.Which one of the following is an example of a firm operating in a tertiary industry? (A) Sanitary Laundry and Dry Cleaners Ltd (B) Lysons Knitwear Industries (C) Squirrel Manufacturing Industries (D)S. Nabi & Sons Building Contractors

16.Under which type of production would you classify the producer of canned foodstuffs? (A) Extractive (B) Construction (C) Manufacturing (D)Service

17.Which one of the following is typical of the subsistence level of production? (A) Consumer wants are adequately satisfied (B) Production creates no more than the barest necessities of life (C) Specialisation results in the creation of surpluses (D)There is a high level of technology and industrialisation

18.Domestic production comprises (A) all the services provided by domestic servants. (B) goods produced mainly for exports. (C) goods produced within the community for local use. (D)only those goods which satisfy consumer wants.

19.Which of the following are features of the level of domestic production? I. The standard of living is barely compatible with existence

II. Production does not extend beyond the satisfaction of societal needs III. Production is supplemented by imports IV. Surplus production is exported (A) I only (B) II and III only (C) I and IV only (D)II, III and IV only

20.The surplus level of production indicates that some goods (A) can be exported. (B) have been produced. (C) have already been sold. (D)need to be imported.

21.Which of the following are factors of production? I. Capital II. Human resources III.Natural resources IV. Production levels (A) I only (B) I,II and II only (C) II,III and IV only

(D)I,II,III and IV

22.Natural resources may also be referred to as (A) capital. (B) entrepreneurial skills. (C) labour. (D)land.

23.Oil and asphalt are produced in (A) Jamaica (B) St Vincent (C) St Lucia (D)Trinidad

24.The greatest suppliers of lumber within the region are (A) Antigua, Barbados and Montserrat. (B) Guyana, Jamaica and Belize. (C) St Vincent, St Kitts and Dominica. (D)Trinidad, Grenada and St Lucia.

25.Cottage industries are industries in which (A) country folk engage in building their own small cottages.

(B) one industry depends on the raw materials of another to produce a final product. (C) production is done mainly for the export market. (D)rural folk, generally, engage in producing goods within the home.

26.Which one of the following is NOT a feature of cottage industries?

(A) Development of local skills and talent (B) Provision of jobs for rural folk (C) Utilisation of materials found within the area (D)Use of specialisation and heavy capital equipment

27.Which of the following are most likely to be products from cottage industries? (A) Handicraft (B) Linen (C) Machinery and tools (D)Vegetables and fruits

28.Linkage industries exist when (A) one industry is carried on in many parts of the country.

(B) some elements of one industry form the basis of a related industry. (C) specialisation and industrialisation are introduced. (D)use is made of local skills and raw materials.

29.The efficiency of labour may decline because of all the following factors EXCEPT (A) improper working conditions. (B) increased salaries and incentives. (C) lack of education and training. (D)poor health facilities.

30.Which one of the following factors is LEAST likely to affect the location of industry? (A) Adequacy of labour supply (B) Availability of raw materials and supplies (C) Governmental intervention (D)Methods of production

31.All of the following are motives which lead to the growth of a business EXCEPT the desire to (A) achieve economies of scale. (B) achieve greater security by extending the range of products and markets. (C) engage in price-cutting activities.

(D)obtain a greater share of the market and marketing power.

32.Which of the following methods could a firm use to achieve internal growth? (A) Amalgamation with subsidiary firms (B) Increasing production or extending the range of its products (C) Takeover or merger (D)Utilisation of facilities provided by firms producing similar products

33.Economies of scale may be defined as the (A) advantages which accrue to large-scale production. (B) ease with which the small business unit is able to produce its goods. (C) number of suggested ways in which production could be undertaken. (D) varying amounts of productive resources used to produce a particular product.

34.A firm can buy raw materials at bulk prices enjoys (A) financial economies. (B) marketing economies. (C) risk-bearing economies. (D)technical economies.

35.the majority of small firms in existence are engaged in (A) direct retailing services. (B) heavy specialisation and mass-production. (C) selling consumer goods at high prices. (D)the wholesale trade.

36.Production in which there is heavy concentration of manual skills is said to be (A) capital intensive. (B) highly automated. (C) heavily mechanised. (D)labour intensive.

37.Which one of the following BEST describes mechanisation? (A) Computerisation (B) Operations carried out automatically (C) Replacing human and animal power by machines (D)Use of labour-saving devices

38.Which one of the following is NOT a function of a trade union?

(A) Assisting in the settlement of industrial disputes (B) Bargaining for the rights and privileges of employers (C) Bargaining for improvements in workers wages and working conditions (D)Seeking educational , social and legal benefits for its members

39.Collective bargaining means that (A) an individual worker has the power to bargain for his own rights. (B) disputes between workers and management must be settled collectively. (C) the union bargains on behalf of its total membership. (D) workers and union representatives sit together to settle disputes.

40.The grievance procedure is (A) an agreement between management and the union which sets out the stages to be observed in the settlement of disputes.

(B) a document which sets out the methods by which workers with grievances must present their case to the union.

(C) the agreement which states that because workers pay union dues, the union is legally bound to settle their disputes with management.

(D)the agreement between workers and management stating the conditions under which they are employed and the benefits they have a right to receive.

41. The needs that are satisfied through work are

i. physiological. ii. psychological. iii.social. iv.technological. (A) I, II and III only (B) II,III and IV only (C) I,II and IV only (D)I, II, III and IV

42.Small firms in industry are able to survive because they (A) can amalgamate with larger firms. (B) get their stocks of goods on more regular basis than larger firms. (C) obtain capital more easily from financial institutions. (D) serve the needs of a particular market or community.

43. Which type of investment is loan capital? (A) Cumulative preference shares (B) Debentures (C) Ordinary shares (D)Preference shares

44.Which one of the following is NOT a characteristic of money? (A) Acceptability (B) Divisibility (C) Durability (D)Probability

45.Personal budgeting involves the (A) allocation of income relative to commitments. (B) detailed calculation of ones income based on the number of hours worked. (C) preparation of a budget only for ones benefit. (D) spending and savings of equal proportions of ones income.

46.Which of the following are functions of commercial banks? I. Accepting deposits from members of the public

II. Providing a system of credit transfer payments III. Providing loans for people in need of funds IV. Regulating the financial affairs of the state

(A) I and III only (B) II and IV only (C) I, III and III only

(D)I,II,III and IV

47.Which of the following bank accounts offers the highest rate of interest? (A) Current (B) Fixed deposit (C) Personal chequing (D)Savings

48. Regular bank payments from a particular account for a given expense are made through (A) bank draft payments. (B) standing order payments. (C) the cheque system. (D)the credit transfer system.

49.A market is (A) a financial institution. (B) a building in which buyers and sellers meet to do business. (C) an arrangement of stalls, with goods for sale. (D)an effective arrangement which brings buyers and sellers into contact with each other.

50.Market research may be defined as

(A) assessing the number of markets throughout the country. (B) the systematic collection of data concerning consumer wants. (C) the collection of lost data concerning the market. (D)researching the market for scarce items.

51.Advertising and sales promotion are referred to as (A) market practices. (B) marketing strategies. (C) merchandising techniques. (D)market research.

52. Informative advertising involves (A) giving free samples of a product. (B) listing the various prices of the product. (C) persuading consumers to buy the product. (D)telling people the facts about the product.

53.Demand may be defined as (A) effective want of commodity to satisfy a need.

(B) amount of goods or services demanded by a consumer. (C) quantity of goods manufactured to satisfy consumer wants. (D)effective want of a commodity backed by the willingness and ability to pay.

54.Price is often used to (A) decrease the snob-appeal of some products. (B) force production to lower costs and work more efficiently. (C) emphasise quality. (D)determine supply.

55. In order to determine the rate of turnover (A) divide the sales at cost by rate of turnover. (B) divide the average stock by the sales at cost. (C) multiply the average stock by sales at cost. (D)divide average stock by two and add cost of sale.

56.A complete shift of the demand curve will most likely result from such factors as I. price changes.

II. changes in taste and fashion.

III. population changes. IV. changes in real income. (A) I only (B) II, III and IV only (C) I, II and IV only (D)All of the above

57.Market equilibrium exists when (A) the number of buyers equals the number of sellers. (B) sellers are satisfied with the price paid for their goods. (C) at the ruling market price buyers do not want to add to the stock of goods they already have. (D)at the current prices, the amount buyers wish to pay just equals the amount of goods sellers want to sell.

58.The situation where production is undertaken by numerous small units, all competing equally and none dominating production or sales. Is called (A) imperfect competition. (B) monopolistic competition. (C) oligopolistic competition. (D) perfect competition. 59.
MR AR

MR=MC

The diagram indicates that since MR=MC (A) the firm is making pure profit. (B) the firm will be running at a loss and will leave the industry. (C) firms are neither entering nor leaving the industry. (D)both supply and price will be forced to rise. 60.When an article is produced by a sole supplier the form of market practice engaged in is called (A) duopoly. (B) monopsony (C) monopoly. (D)oligopoly. 61.A pure monopoly exists when (A) there is complete freedom of entry and exit into the industry. (B) the competition existing between rivals is pure and not selfish. (C) the commodity produced by each firm is homogenous and cannot be distinguished from each other. (D)there is only one producer or seller of the commodity.