SS2 Second Term Commerce Past Questions And Answers

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

A) Measure the overall cost of living for consumers

B) Evaluate corporate profits

C) Track changes in exchange rates

D) Determine interest rates

Answer: A) Measure the overall cost of living for consumers

Question: In accounting, what is depreciation?

 

A) Increase in the value of an asset

B) Loss of value of an asset over time

C) Interest paid on loans

D) Revenue generated from investments

Answer: B) Loss of value of an asset over time

Question: What is the main function of a marketing mix?

 

A) Determine the company’s profit margin

B) Allocate resources within a firm

C) Manage relationships with suppliers

D) Coordinate elements to satisfy customers’ needs

Answer: D) Coordinate elements to satisfy customers’ needs

Question: Which type of business structure is a combination of a corporation and a partnership, allowing for the limited liability of a corporation and the pass-through taxation of a partnership?

 

A) Sole proprietorship

B) Limited liability company (LLC)

C) Corporation

D) Joint venture

Answer: B) Limited liability company (LLC)

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

 

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

B) The total quantity of a good demanded

C) The average income of consumers

D) The availability of substitutes in the market

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

Question: In financial management, what is the role of a budget deficit?

 

A) Excess revenue over expenses

B) Shortfall of revenue compared to expenses

C) Total revenue for a fiscal year

D) Capital investment in the budget

Answer: B) Shortfall of revenue compared to expenses

Question: What is the significance of a demand curve sloping downwards from left to right?

 

A) Indicates a normal good

B) Suggests an inferior good

C) Illustrates a Giffen good

D) Reflects the law of demand

Answer: D) Reflects the law of demand

Question: What is the role of entrepreneurship in economic development?

 

A) Stabilize prices in the market

B) Increase government intervention

C) Create jobs, foster innovation, and drive economic growth

D) Control inflation rates

Answer: C) Create jobs, foster innovation, and drive economic growth

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

 

A) Advocating for free trade agreements

B) The policy of restraining trade between nations through tariffs and quotas

C) Encouraging open borders for trade

D) Promoting economic self-sufficiency

Answer: B) The policy of restraining trade between nations through tariffs and quotas

Question: What does the term “Laissez-faire” mean in economic theory?

 

A) Government intervention in economic activities

B) Free-market capitalism with minimal government interference

C) State ownership of all means of production

D) Collective ownership of property

Answer: B) Free-market capitalism with minimal government interference

Question: What is the primary function of human resource management in an organization?

 

A) Maximize shareholder wealth

B) Enhance customer satisfaction

C) Manage and develop an organization’s workforce

D) Control production costs

Answer: C) Manage and develop an organization’s workforce

Question: In financial terms, what does the acronym IPO stand for?

 

A) Internal Profit Oversight

B) Initial Public Offering

C) International Product Organization

D) Investment Portfolio Overview

Answer: B) Initial Public Offering

Question: What is the purpose of a trade union?

 

A) Promote international trade

B) Represent the interests of workers and negotiate with employers

C) Regulate commodity prices

D) Manage government finances

Answer: B) Represent the interests of workers and negotiate with employers

Question: Which financial statement provides a summary of a company’s revenues and expenses over a specific period?

 

A) Balance sheet

B) Income statement

C) Cash flow statement

D) Statement of retained earnings

Answer: B) Income statement

Question: What is the significance of a production possibility frontier (PPF) in economics?

 

A) Illustrates the trade-offs between two goods an economy can produce

B) Represents total production in an economy

C) Determines the equilibrium price in a market

D) Measures the unemployment rate

Answer: A) Illustrates the trade-offs between two goods an economy can produce

Question: In the context of supply and demand, what happens when there is a surplus of a good in the market?

 

A) Prices rise

B) Prices fall

C) Equilibrium is reached

D) Government intervention is required

Answer: B) Prices fall

Question: What is the term for the total amount of money circulating in an economy?

 

A) Gross Domestic Product (GDP)

B) Money supply

C) Fiscal policy

D) Monetary policy

Answer: B) Money supply

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

 

A) Monopoly

B) Oligopoly

C) Monopolistic competition

D) Perfect competition

Answer: B) Oligopoly

Question: What is the role of the World Bank in the global economy?

 

A) Regulate international trade

B) Provide financial assistance for infrastructure projects in developing countries

C) Set global interest rates

D) Manage global currency exchange rates

Answer: B) Provide financial assistance for infrastructure projects in developing countries

Question: What is the concept of diminishing marginal utility in economics?

 

A) The more you consume of a good, the higher your total satisfaction

B) The less you consume of a good, the higher your total satisfaction

C) The additional satisfaction gained from consuming one more unit of a good decreases as consumption increases

D) The total satisfaction derived from consuming a good remains constant regardless of quantity

Answer: C) The additional satisfaction gained from consuming one more unit of a good decreases as consumption increases