SS1 first term economics past questions and answers

SS1 first term economics past questions and answers

Here are 25 SS1 (Secondary School 1) Economics questions with options and answers:

Question: What is the basic economic problem?

A) Scarcity

B) Abundance

C) Surplus

D) Shortage

Answer: A) Scarcity

Question: Which of the following is a factor of production?

A) Money

B) Land

C) Services

D) Consumption

Answer: B) Land

Question: What is the term for the total value of goods and services produced in a country within a specific time period?

A) GDP

B) CPI

C) PPF

D) GNP

Answer: A) GDP

Question: In economics, what does the term "opportunity cost" refer to?

A) The cost of luxury goods

B) The cost of production

C) The next best alternative forgone

D) The total cost of goods and services

Answer: C) The next best alternative forgone

Question: Which market structure is characterized by a large number of sellers and buyers with similar products?

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: C) Perfect competition

Question: What is the main function of central banks in an economy?

A) Fiscal policy

B) Monetary policy

C) Trade policy

D) Industrial policy

Answer: B) Monetary policy

Question: Inflation can be measured by which of the following indices?

A) GDP

B) CPI

C) PPI

D) GNP

Answer: B) CPI

Question: Which type of unemployment occurs when there is a mismatch between the skills of workers and the requirements of jobs?

A) Frictional unemployment

B) Structural unemployment

C) Cyclical unemployment

D) Seasonal unemployment

Answer: B) Structural unemployment

Question: What does the law of demand state?

A) As price increases, quantity demanded increases

B) As price decreases, quantity demanded increases

C) Price and quantity demanded are unrelated

D) Demand is constant regardless of price

Answer: B) As price decreases, quantity demanded increases

Question: Which of the following is a regressive tax?

A) Income tax

B) Property tax

C) Sales tax

D) Corporate tax

Answer: C) Sales tax

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

A) Settling trade disputes

B) Providing financial aid

C) Controlling exchange rates

D) Regulating domestic markets

Answer: A) Settling trade disputes

Question: Which economic system is characterized by private ownership of resources and the means of production?

A) Capitalism

B) Socialism

C) Communism

D) Feudalism

Answer: A) Capitalism

Question: What is the formula for calculating GDP?

A) Consumption + Investment + Government spending + Net exports

B) Consumption - Investment - Government spending - Net exports

C) Consumption × Investment × Government spending × Net exports

D) Consumption ÷ Investment ÷ Government spending ÷ Net exports

Answer: A) Consumption + Investment + Government spending + Net exports

Question: Which of the following is a characteristic of a command economy?

A) Private property rights

B) Market-driven prices

C) Central planning by the government

D) Competition among producers

Answer: C) Central planning by the government

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

A) Promoting global trade

B) Providing financial assistance to countries in need

C) Regulating interest rates

D) Controlling inflation

Answer: B) Providing financial assistance to countries in need

Question: What is the law of supply?

A) As price increases, quantity supplied decreases

B) As price decreases, quantity supplied decreases

C) Price and quantity supplied are unrelated

D) As price increases, quantity supplied increases

Answer: D) As price increases, quantity supplied increases

Question: Which market structure is characterized by a single seller with no close substitutes?

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: A) Monopoly

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

A) Measures the average level of prices of a basket of goods and services

B) Determines exchange rates

C) Regulates interest rates

D) Controls inflation

Answer: A) Measures the average level of prices of a basket of goods and services

Question: What is a progressive tax?

A) A tax where the rate decreases as the taxpayer's income increases

B) A tax where the rate increases as the taxpayer's income increases

C) A flat-rate tax for everyone

D) A tax on luxury goods

Answer: B) A tax where the rate increases as the taxpayer's income increases

Question: Which economic indicator is used to measure the average price changes in a basket of consumer goods and services?

A) GDP

B) CPI

C) PPI

D) GNP

Answer: B) CPI

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

A) Regulating banks

B) Overseeing international trade agreements

C) Protecting investors and maintaining fair and efficient markets

D) Controlling fiscal policy

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

Question: Which type of goods have a negative income elasticity of demand?

A) Normal goods

B) Inferior goods

C) Luxury goods

D) Giffen goods

Answer: B) Inferior goods

Question: What is the term for the total value of all goods and services produced by a country's residents, regardless of where they are located?

A) GDP

B) CPI

C) GNP