SS3 Third Term Commerce Past Questions And Answers

Question: What is the purpose of a trade barrier in international economics?

 

a) Encouraging free trade

b) Limiting government intervention

c) Promoting globalization

d) Restricting imports or exports

 

Answer: d) Restricting imports or exports

 

Question: What does the term “Fiscal Policy” refer to?

 

a) Control of the money supply and interest rates

b) Government’s use of taxation and spending to influence the economy

c) Regulation of financial markets

d) Allocation of resources in a market economy

 

Answer: b) Government’s use of taxation and spending to influence the economy

 

Question: What is the difference between a bond and a stock in the financial market?

 

a) Bonds represent ownership, while stocks represent debt

b) Bonds pay interest, while stocks pay dividends

c) Bonds are riskier than stocks

d) Stocks have a fixed maturity date, while bonds do not

 

Answer: b) Bonds pay interest, while stocks pay dividends

 

Question: In the context of international trade, what does the term “Dumping” mean?

 

a) Selling goods in foreign markets at a lower price than in the home market

b) Exporting goods without government approval

c) Investing heavily in foreign markets

d) Subsidizing domestic industries

 

Answer: a) Selling goods in foreign markets at a lower price than in the home market

 

Question: What is the role of a financial statement in business?

 

a) Managing employee performance

b) Communicating financial information to external stakeholders

c) Controlling production processes

d) Implementing marketing strategies

 

Answer: b) Communicating financial information to external stakeholders

 

Question: In the context of marketing, what does the term “Target Audience” refer to?

 

a) All potential customers in the market

b) A specific group of customers for whom a product or service is designed

c) The total market demand

d) The competition within a specific industry

 

Answer: b) A specific group of customers for whom a product or service is designed

 

Question: What is the concept of “Opportunity Cost” in economics?

 

a) The total cost of producing a good or service

b) The cost of raw materials

c) The cost of forgoing the next best alternative when making a decision

d) The total revenue from selling a product

 

Answer: c) The cost of forgoing the next best alternative when making a decision

 

Question: What is the primary function of the International Monetary Fund (IMF)?

 

a) Regulating global trade agreements

b) Providing financial assistance to countries facing balance of payments problems

c) Managing interest rates worldwide

d) Facilitating international labor agreements

 

Answer: b) Providing financial assistance to countries facing balance of payments problems

 

Question: What is the purpose of a cost-benefit analysis in decision-making?

 

a) Evaluating the ethical implications of a decision

b) Assessing the impact of inflation on costs

c) Comparing the total costs and benefits of a decision to determine its profitability

d) Calculating the average cost of production

 

Answer: c) Comparing the total costs and benefits of a decision to determine its profitability

 

Question: What is the significance of the term “Monopoly” in market structure?

 

a) Many sellers, differentiated products

b) Single seller, unique product, high entry barriers

c) Few sellers, identical products

d) Many sellers, low entry barriers

 

Answer: b) Single seller, unique product, high entry barriers

 

Question: What does the term “Deflation” refer to in the context of the economy?

 

a) A sustained increase in the general price level of goods and services

b) A decrease in the money supply

c) A decrease in the general price level of goods and services

d) An increase in government spending

 

Answer: c) A decrease in the general price level of goods and services

 

Question: What is the role of a credit rating agency in financial markets?

 

a) Regulating interest rates

b) Assessing the creditworthiness of individuals and organizations

c) Controlling inflation

d) Managing stock market fluctuations

 

Answer: b) Assessing the creditworthiness of individuals and organizations

 

Question: In marketing, what is the concept of the “Product Life Cycle”?

 

a) The duration a product is legally protected by patents

b) The stages a product goes through from introduction to withdrawal from the market

c) The time it takes to manufacture a product

d) The lifespan of a product’s design

 

Answer: b) The stages a product goes through from introduction to withdrawal from the market

 

Question: What is the purpose of a budget in financial management?

 

a) Predicting future stock market trends

b) Planning and controlling income and expenses

c) Evaluating the effectiveness of marketing strategies

d) Setting interest rates

 

Answer: b) Planning and controlling income and expenses

 

Question: What is the significance of the term “Globalization” in the business world?

 

a) Restricting international trade

b) The process of increased interconnectedness and interdependence among countries

c) Promoting isolationism

d) Controlling curren

cy exchange rates

 

Answer: b) The process of increased interconnectedness and interdependence among countries.