SS2 Second Term Economics Past Questions And Answers

SS2 Economics questions with options and answers:

 

Question: Define a subsidy.

 

A) Payment made by the government to individuals

B) Payment made by individuals to the government

C) Financial assistance provided to businesses or industries

D) Tax imposed on imported goods

Answer: C) Financial assistance provided to businesses or industries

Question: What is the law of supply?

 

A) As price increases, quantity supplied increases

B) As price increases, quantity supplied decreases

C) As price decreases, quantity supplied decreases

D) As price decreases, quantity supplied increases

Answer: A) As price increases, quantity supplied increases

Question: Define microeconomics.

 

A) Study of individual economic units such as households and firms

B) Study of the overall economy

C) Analysis of international trade patterns

D) Examination of government policies

Answer: A) Study of individual economic units such as households and firms

Question: What is a public good?

 

A) A good that is privately owned

B) A good that is non-excludable and non-rivalrous

C) A good with high demand in the market

D) A good with limited availability

Answer: B) A good that is non-excludable and non-rivalrous

Question: Define the multiplier effect.

 

A) The process by which an initial change in spending sets off a chain reaction of additional spending

B) The impact of inflation on consumer purchasing power

C) The influence of government policies on economic stability

D) The measure of consumer confidence in the economy

Answer: A) The process by which an initial change in spending sets off a chain reaction of additional spending

Question: What is the difference between monetary policy and fiscal policy?

 

A) Monetary policy is controlled by the government, while fiscal policy is controlled by the central bank

B) Monetary policy involves the regulation of interest rates, while fiscal policy involves government spending and taxation

C) Monetary policy focuses on the money supply, while fiscal policy focuses on inflation

D) Fiscal policy is implemented by the central bank, while monetary policy is implemented by the government

Answer: B) Monetary policy involves the regulation of interest rates, while fiscal policy involves government spending and taxation

Question: Define the law of diminishing returns.

 

A) As production increases, total output increases proportionally

B) As production increases, the marginal product of an input decreases

C) As production decreases, total output decreases proportionally

D) As production decreases, the marginal product of an input increases

Answer: B) As production increases, the marginal product of an input decreases

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

 

A) To regulate global currency exchange rates

B) To facilitate international negotiations on climate change

C) To promote free and fair trade among nations

D) To control national monetary policies

Answer: C) To promote free and fair trade among nations

Question: Define the term “elasticity of supply.”

 

A) Measure of the responsiveness of quantity supplied to a change in price

B) Measure of the overall supply in the market

C) Measure of government intervention in the supply chain

D) Measure of the stability of supply and demand

Answer: A) Measure of the responsiveness of quantity supplied to a change in price

Question: What is a trade barrier?

 

A) Any restriction imposed by a government to limit free trade

B) A financial incentive provided by the government to promote exports

C) The difference between exports and imports

D) The cost of transporting goods internationally

Answer: A) Any restriction imposed by a government to limit free trade

Question: Define cost-benefit analysis.

 

A) Evaluation of the total cost of production

B) Comparison of the benefits and costs of a decision, policy, or project

C) Calculation of the average cost of goods in the market

D) Assessment of consumer preferences in the market

Answer: B) Comparison of the benefits and costs of a decision, policy, or project

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

 

A) To regulate international trade agreements

B) To provide financial assistance and stabilize exchange rates

C) To control global inflation rates

D) To manage national fiscal policies

Answer: B) To provide financial assistance and stabilize exchange rates

Question: Define the concept of a mixed economy.

 

A) An economy where all resources are owned by the government

B) An economy where production is based on supply and demand

C) An economy that combines elements of both market and command economies

D) An economy with no government intervention

Answer: C) An economy that combines elements of both market and command economies

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

 

A) To regulate the banking sector

B) To oversee and regulate the financial securities industry

C) To control international trade agreements

D) To manage fiscal policy

Answer: B) To oversee and regulate the financial securities industry