SS1 third Term economics past questions and answers

SS1 third Term economics past questions and answers

SS1 Economics questions with options and answers:

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

A) Providing financial assistance to countries in need

B) Regulating interest rates

C) Controlling inflation

D) Facilitating international trade agreements

Answer: A) Providing financial assistance to countries in need

Question: In the context of production, what is the difference between fixed costs and variable costs?

A) Fixed costs change with the level of production; variable costs remain constant

B) Fixed costs remain constant regardless of the level of production; variable costs change with production

C) Both fixed and variable costs change with the level of production

D) Fixed costs are associated with services; variable costs are associated with goods

Answer: B) Fixed costs remain constant regardless of the level of production; variable costs change with production

Question: What is the purpose of a trade surplus in international trade?

A) To increase government revenue

B) To stimulate domestic consumption

C) To enhance foreign exchange reserves

D) To reduce unemployment

Answer: C) To enhance foreign exchange reserves

Question: In the context of economic indicators, what does the term "leading indicators" refer to?

A) Measures that provide information about the current state of the economy

B) Measures that predict future economic trends

C) Measures that reflect past economic performance

D) Measures that focus on a specific industry

Answer: B) Measures that predict future economic trends

Question: What is the term for a situation where the government spends less money than it collects in taxes?

A) Budget surplus

B) Budget deficit

C) Balanced budget

D) Fiscal equilibrium

Answer: A) Budget surplus

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

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: B) Oligopoly

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

A) Setting monetary policy

B) Regulating interest rates

C) Enforcing trade agreements and reducing trade barriers

D) Controlling inflation

Answer: C) Enforcing trade agreements and reducing trade barriers

Question: Which of the following is an example of a non-renewable resource?

A) Wind energy

B) Solar energy

C) Coal

D) Forests

Answer: C) Coal

Question: What is the term for the total value of a country's exports minus the total value of its imports?

A) Trade deficit

B) Trade surplus

C) Balance of payments

D) Current account balance

Answer: A) Trade deficit

Question: What is the purpose of a central depository in the financial market?

A) Regulating interest rates

B) Facilitating the trading of securities and maintaining records

C) Controlling inflation

D) Managing fiscal policy

Answer: B) Facilitating the trading of securities and maintaining records

Question: Which type of market failure occurs when some individuals or firms capture a disproportionate share of market resources?

A) Monopoly

B) Externalities

C) Income inequality

D) Public goods

Answer: C) Income inequality

Question: What is the term for a measure of the responsiveness of quantity demanded to a change in the price of a good?

A) Elasticity of supply

B) Cross-price elasticity

C) Price elasticity of demand

D) Income elasticity of demand

Answer: C) Price elasticity of demand

Question: In the context of economic systems, what does "laissez-faire" mean?

A) Government intervention in the economy

B) Free-market capitalism with limited government interference

C) Command economy with central planning

D) Cooperative ownership of production means

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

Question: Which type of market structure is characterized by a few sellers, each offering a slightly different product?

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: D) Monopolistic competition

Question: What is the term for the percentage of income that individuals or households pay in taxes?

A) Tax rate

B) Tax revenue

C) Marginal tax rate

D) Average tax rate

Answer: D) Average tax rate

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

A) Private ownership of resources

B) Market-driven prices

C) Central planning by the government

D) Competition among producers

Answer: C) Central planning by the government