SS1 Third Term Economics Past Questions And Answers

Question: What is the purpose of the Consumer Price Index (CPI) in measuring inflation?

 

A) To measure changes in the cost of living

B) To track changes in the unemployment rate

C) To determine the overall economic output

D) To calculate government revenue

Answer: A) To measure changes in the cost of living

Question: Define the term “marginal cost.”

 

A) The total cost of production

B) The additional cost of producing one more unit

C) The fixed cost of production

D) The average cost per unit

Answer: B) The additional cost of producing one more unit

Question: In economics, what does the term “oligopoly” refer to?

 

A) A market structure with a single seller

B) A market structure with many sellers offering similar products

C) A market structure with a few large sellers dominating the market

D) A market structure with perfect competition

Answer: C) A market structure with a few large sellers dominating the market

Question: What is the difference between positive and normative economics?

 

A) Positive economics focuses on facts and cause-and-effect relationships, while normative economics deals with value judgments.

B) Positive economics deals with ethical considerations, while normative economics focuses on empirical observations.

C) Positive economics is based on subjective opinions, while normative economics relies on objective data.

D) Positive economics and normative economics are synonymous terms.

Answer: A) Positive economics focuses on facts and cause-and-effect relationships, while normative economics deals with value judgments.

Question: Which of the following is an example of a public good?

 

A) A restaurant meal

B) A private car

C) Street lighting

D) Clothing

Answer: C) Street lighting

Question: What is the role of the labor market in determining wages?

 

A) Setting government regulations on wages

B) Influencing the demand and supply of labor

C) Dictating wage rates based on workers’ preferences

D) Controlling inflation rates

Answer: B) Influencing the demand and supply of labor

Question: Define the term “invisible hand” in economics.

 

A) Government intervention in the market

B) The self-regulating nature of markets guided by individuals pursuing their own interests

C) Price controls on goods and services

D) Consumer protection laws

Answer: B) The self-regulating nature of markets guided by individuals pursuing their own interests

Question: What is the role of the Bureau of Labor Statistics (BLS) in economic measurement?

 

A) Regulating financial markets

B) Calculating GDP

C) Collecting and analyzing labor market data

D) Enforcing trade agreements

Answer: C) Collecting and analyzing labor market data

Question: In the context of international trade, what is a trade surplus?

 

A) Exports > Imports

B) Imports > Exports

C) Exports = Imports

D) No trade occurring

Answer: A) Exports > Imports

Question: Define the term “elasticity of supply.”

 

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

B) The responsiveness of quantity supplied to a change in price

C) The total quantity supplied in the market

D) The ratio of supply to demand

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

Question: What is the role of the Federal Reserve System (the Fed) in the United States?

 

A) Regulating international trade

B) Controlling fiscal policy

C) Overseeing monetary policy and banking system stability

D) Managing government expenditure

Answer: C) Overseeing monetary policy and banking system stability

Question: What is the purpose of a production possibilities curve (PPC) in economics?

 

A) To illustrate the law of demand

B) To show the trade-off between two goods given limited resources

C) To represent changes in the inflation rate

D) To measure changes in GDP

Answer: B) To show the trade-off between two goods given limited resources

Question: In the circular flow model, what do households supply to the product market?

 

A) Goods and services

B) Labor and other factors of production

C) Money

D) Government regulations

Answer: B) Labor and other factors of production

Question: Which type of economic system is characterized by collective or government ownership of resources and central planning?

 

A) Capitalism

B) Socialism

C) Communism

D) Mixed economy

Answer: C) Communism

Question: What is the role of the World Trade Organization (WTO) in resolving trade disputes?

 

A) Promoting protectionism

B) Enforcing trade barriers

C) Facilitating negotiations and dispute resolution between member countries

D) Regulating fiscal policy

Answer: C) Facilitating negotiations and dispute resolution between member countries

Question: Define the term “balance of trade.”

 

A) The difference between exports and imports

B) The total value of goods and services produced

C) The exchange rate between two currencies

D) The overall economic output of a country

Answer: A) The difference between exports and imports

Question: What is the role of the labor union in the labor market?

 

A) Representing employers in negotiations

B) Advocating for workers’ rights and negotiating collective bargaining agreements

C) Setting government policies on wages

D) Regulating working hours

Answer: B) Advocating for workers’ rights and negotiating collective bargaining agreements

Question: In economic terms, what does “ceteris paribus” mean?

 

A) All else being equal

B) Constant change

C) Without any restrictions

D) Endless possibilities

Answer: A) All else being equal

Question: What is the role of the Environmental Protection Agency (EPA) in economic policy?

 

A) Regulating interest rates

B) Enforcing antitrust laws

C) Overseeing environmental regulations and policies

D) Controlling inflation rates

Answer: C) Overseeing environmental regulations and policies