SS3 Second Term Economics Past Questions And Answers

SS3 Economics questions with options and answers:

 

Question: What is the primary function of the World Trade Organization (WTO)?

 

a) Currency exchange

b) Promotion of world peace

c) Facilitation of international trade

d) Control of global monetary policy

 

Answer: c) Facilitation of international trade

 

Question: In macroeconomics, what does the term “fiscal policy” refer to?

 

a) Government’s regulation of interest rates

b) Government’s management of money supply

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

d) Government’s control over foreign trade

 

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

 

Question: Which market structure is characterized by a small number of large firms dominating the market?

 

a) Perfect competition

b) Oligopoly

c) Monopoly

d) Monopolistic competition

 

Answer: b) Oligopoly

 

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

 

a) Providing financial assistance to developing countries

b) Promoting global environmental sustainability

c) Regulating international trade agreements

d) Controlling global interest rates

 

Answer: a) Providing financial assistance to developing countries

 

Question: What does the term “elasticity of demand” measure?

 

a) The responsiveness of quantity demanded to a change in price

b) The total demand for a good or service in the market

c) The percentage change in income relative to the percentage change in price

d) The ability of consumers to substitute one good for another

 

Answer: a) The responsiveness of quantity demanded to a change in price

 

Question: What is the purpose of antitrust laws in economics?

 

a) To encourage monopolies for economic stability

b) To regulate international trade

c) To promote fair competition and prevent monopolistic practices

d) To control inflation rates

 

Answer: c) To promote fair competition and prevent monopolistic practices

 

Question: Which economic concept refers to the total market value of all final goods and services produced within a country in a specific time period?

 

a) Gross National Product (GNP)

b) Gross Domestic Product (GDP)

c) Net National Product (NNP)

d) Net Domestic Product (NDP)

 

Answer: b) Gross Domestic Product (GDP)

 

Question: What is a progressive tax system?

 

a) Tax rate decreases as income increases

b) Same tax rate for all income levels

c) Tax rate increases as income increases

d) Tax rate is unrelated to income

 

Answer: c) Tax rate increases as income increases

 

Question: What is the role of entrepreneurship in the economy?

 

a) Consuming goods and services

b) Owning land and natural resources

c) Innovating and taking risks to create new businesses

d) Performing labor and providing skills

 

Answer: c) Innovating and taking risks to create new businesses

 

Question: What is the law of demand in microeconomics?

 

a) As prices decrease, quantity demanded increases

b) As prices decrease, quantity demanded decreases

c) As prices increase, quantity demanded increases

d) As prices increase, quantity demanded remains constant

 

Answer: b) As prices decrease, quantity demanded decreases

 

Question: What is the role of the Securities and Exchange Commission (SEC) in financial markets?

 

a) Regulating international trade agreements

b) Protecting investors and maintaining fair and efficient markets

c) Controlling global interest rates

d) Managing the money supply

 

Answer: b) Protecting investors and maintaining fair and efficient markets

 

Question: What is the difference between a trade surplus and a trade deficit?

 

a) Both involve exporting more than importing

b) A trade surplus occurs when imports exceed exports

c) A trade deficit occurs when exports exceed imports

d) A trade surplus occurs when exports exceed imports

 

Answer: d) A trade surplus occurs when exports exceed imports

 

Question: What is the formula for calculating the consumer surplus?

 

a) Total revenue – Total cost

b) Total cost – Total revenue

c) Price – Marginal cost

d) Marginal cost – Price

 

Answer: a) Total revenue – Total cost

 

Question: What is the concept of comparative advantage in international trade?

 

a) Countries should produce everything they need domestically

b) Countries should specialize in producing goods with the lowest opportunity cost

c) Countries should focus on self-sufficiency to avoid dependency

d) Countries should prioritize exporting services over goods

 

Answer: b) Countries should specialize in producing goods with the lowest opportunity cost

 

Question: What is the function of the labor market in an economy?

 

a) Determining interest rates

b) Allocating financial resources

c) Facilitating the exchange of labor services between workers and employers

d) Regul

ating international trade

 

Answer: c) Facilitating the exchange of labor services between workers and employers