SS2 second Term economics past questions and answers

SS2 second Term economics past questions and answers

SS2 Economics questions with options and answers:

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

a) Trade deficit

b) Trade surplus

c) Balance of payments

d) Current account balance

Answer: a) Trade deficit

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

a) Private ownership of resources

b) Market forces determine prices

c) Centralized government planning

d) Competition among firms

Answer: c) Centralized government planning

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

a) Measure of the average level of prices of a basket of goods and services

b) Indicator of the stock market performance

c) Measure of the unemployment rate

d) Indicator of the inflation rate

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

Question: Which factor of production represents the physical and mental effort put into the production of goods and services?

a) Land

b) Capital

c) Labor

d) Entrepreneurship

Answer: c) Labor

Question: What does the law of supply state?

a) Quantity supplied decreases as price decreases

b) Quantity supplied increases as price increases

c) Quantity demanded decreases as price increases

d) Quantity demanded increases as price decreases

Answer: b) Quantity supplied increases as price increases

Question: Which of the following is a characteristic of a monopolistic competition market structure?

a) Many sellers, identical products

b) One seller, unique product

c) Few sellers, identical products

d) Many sellers, similar but not identical products

Answer: d) Many sellers, similar but not identical products

Question: What is the purpose of a central bank's monetary policy?

a) Control of government spending

b) Stabilization of prices and employment

c) Regulation of international trade

d) Collection of taxes

Answer: b) Stabilization of prices and employment

Question: What is the term for the percentage of the labor force that is unemployed and actively seeking employment?

a) Labor force participation rate

b) Unemployment rate

c) Employment-population ratio

d) Inflation rate

Answer: b) Unemployment rate

Question: Which of the following is an example of 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)?

a) Providing financial assistance to developing countries

b) Promoting fair and free trade practices

c) Regulating global interest rates

d) Managing international humanitarian aid

Answer: b) Promoting fair and free trade practices

Question: Which economic system relies on the forces of supply and demand to determine prices and allocate resources?

a) Command economy

b) Mixed economy

c) Traditional economy

d) Market economy

Answer: d) Market economy

Question: What is the concept of elasticity of supply?

a) Measures the responsiveness of quantity supplied to a change in price

b) Indicates the total supply in the market

c) Represents the total revenue of a firm

d) Measures the percentage change in quantity supplied

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

Question: Which of the following is a tool of monetary policy used by central banks to control the money supply?

a) Fiscal stimulus

b) Open market operations

c) Progressive taxation

d) Subsidies

Answer: b) Open market operations

Question: What is the term for a situation where a country exports more goods and services than it imports?

a) Trade deficit

b) Balance of payments surplus

c) Trade surplus

d) Current account deficit

Answer: c) Trade surplus

Question: Which of the following is a factor that can cause a shift in the demand curve?

a) Change in price

b) Change in quantity supplied

c) Change in income

d) Change in production technology

Answer: c) Change in income

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

a) Regulating international trade

b) Enforcing antitrust laws

c) Overseeing financial markets and protecting investors

d) Controlling inflation

Answer: c) Overseeing financial markets and protecting investors

Question: What is the term for a tax that takes a higher percentage from the income of high-income earners than from low-income earners?

a) Flat tax

b) Regressive tax

c) Progressive tax

d) Excise tax

Answer: c) Progressive tax

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

a) Promotion of free trade

b) Advocacy for globalization

c) Adoption of trade liberalization policies

d) Use of trade barriers to protect domestic industries

Answer: d) Use of trade barriers to protect domestic industries

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

a) Net domestic product

b) Gross national product

c) Gross domestic product

d) National income

Answer: c) Gross domestic product

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

a) Centralized government planning

b) Private ownership of resources

c) Barter system

d) Market forces determine prices

Answer: c) Barter system