SS3 Third Term Economics Past Questions And Answers

SS3 Economics questions with options and answers:

 

Question: What is the concept of a price floor in economics?

 

a) A minimum price set by the government to support the income of producers

b) A maximum price set by the government to protect consumers

c) The equilibrium price determined by market forces

d) The average price of a good or service in the market

 

Answer: a) A minimum price set by the government to support the income of producers

 

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

 

a) Encouraging free trade between nations

b) Imposing restrictions on imports to protect domestic industries

c) Promoting fair competition in global markets

d) Eliminating tariffs and trade barriers

 

Answer: b) Imposing restrictions on imports to protect domestic industries

 

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

 

a) Regulating international financial markets

b) Providing financial assistance for infrastructure projects in developing countries

c) Controlling global exchange rates

d) Facilitating international trade agreements

 

Answer: b) Providing financial assistance for infrastructure projects in developing countries

 

Question: What is the difference between a progressive tax and a regressive tax?

 

a) Both tax systems have the same impact on different income levels

b) A progressive tax places a higher burden on higher incomes, while a regressive tax places a higher burden on lower incomes

c) A regressive tax places a higher burden on higher incomes, while a progressive tax places a higher burden on lower incomes

d) Both tax systems have a proportional impact on all income levels

 

Answer: b) A progressive tax places a higher burden on higher incomes, while a regressive tax places a higher burden on lower incomes

 

Question: What is the concept of “opportunity cost”?

 

a) The explicit cost of making a decision

b) The monetary value of the benefits of a decision

c) The value of the next best alternative forgone when a decision is made

d) The total cost of all available alternatives

 

Answer: c) The value of the next best alternative forgone when a decision is made

 

Question: What is the function of the Organization of the Petroleum Exporting Countries (OPEC)?

 

a) Regulating international trade agreements

b) Controlling global interest rates

c) Managing global stock markets

d) Coordinating the production and pricing of oil among member countries

 

Answer: d) Coordinating the production and pricing of oil among member countries

 

Question: In economics, what does the term “elasticity of supply” measure?

 

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

b) The total supply of a good or service in the market

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

d) The ability of producers to substitute one input for another

 

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

 

Question: What is the role of the United Nations Conference on Trade and Development (UNCTAD)?

 

a) Regulating international financial markets

b) Promoting global environmental sustainability

c) Facilitating international cooperation on trade and development issues

d) Controlling global exchange rates

 

Answer: c) Facilitating international cooperation on trade and development issues

 

Question: In monetary policy, what is the significance of the federal funds rate?

 

a) It is the interest rate at which banks lend to each other overnight

b) It determines the maximum interest rate that banks can charge on loans

c) It is set by the World Bank to control global interest rates

d) It regulates the exchange rate between two currencies

 

Answer: a) It is the interest rate at which banks lend to each other overnight

 

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

 

a) Costs or benefits that affect a third party not directly involved in a transaction

b) The total cost of production, including external factors

c) The average cost of a good or service in the market

d) The monetary value of goods and services produced in an economy

 

Answer: a) Costs or benefits that affect a third party not directly involved in a transaction

 

Question: What is the role of the International Labor Organization (ILO) in global economic governance?

 

a) Regulating international financial markets

b) Promoting global environmental sustainability

c) Establishing labor standards and promoting decent work worldwide

d) Controlling global exchange rates

 

Answer: c) Establishing labor standards and promoting decent work worldwide

 

Question: What is the Phillips Curve in macroeconomics?

 

a) It illustrates the relationship between inflation and unemployment

b) It shows the relationship between government spending and economic growth

c) It represents the connection between interest rates and investment

d) It demonstrates the correlation between exchange rates and trade balances

 

Answer: a) It illustrates the relationship between inflation and unemployment

 

Question: What is the function of a central depository in the financial markets?

 

a) Regulating international financial markets

b) Facilitating the trading and settlement of financial instruments

c) Controlling global interest rates

d) Managing global stock markets

 

Answer: b) Facilitating the trading and settlement of financial instruments

 

Question: What is the concept of “invisible hand” in economics?

 

a) The role of government in directing economic activities

b) The idea that self-interest and competition lead to societal benefits

c) The control of prices by a central authority

d) The impact of external factors on supply and demand

 

Answer: b) The idea that self-interest and competition lead to societal benefits

 

Question: What is the role of the International Finance Corporation (IFC) in the World Bank Group?

 

a) Providing loans to governments for infrastructure projects

b) Focusing on poverty reduction and social development

c) Supporting private sector investments in developing countries

d) Regulating international trade agreements

 

Answer: c) Supporting private sector investments in developing countries

 

Question: What is the difference between a public good and a private good?

 

a) Both goods are non-excludable and non-rivalrous

b) A public good is rivalrous, while a private good is non-rivalrous

c) A public good is non-excludable and non-rivalrous, while a private good is excludable and rivalrous

d) Both goods are excludable and rivalrous

 

Answer: c) A public good is non-excludable and non-rivalrous, while a private good is excludable and rivalrous