SS2 third Term economics past questions and answers

SS2 third Term economics past questions and answers

SS2 Economics questions with options and answers:

Question: What is the role of the Central Statistical Office (CSO) in an economy?

a) Fiscal policy formulation

b) Regulation of interest rates

c) Collection and analysis of economic data

d) Implementation of trade policies

Answer: c) Collection and analysis of economic data

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

a) Frictional unemployment

b) Cyclical unemployment

c) Structural unemployment

d) Seasonal unemployment

Answer: c) Structural unemployment

Question: What is the term for the additional cost incurred by producing one more unit of a good or service?

a) Average cost

b) Total cost

c) Marginal cost

d) Fixed cost

Answer: c) Marginal cost

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

a) Private ownership of resources

b) Centralized government planning

c) Market forces determine prices

d) Combination of private and public ownership of resources

Answer: d) Combination of private and public ownership of resources

Question: What is the purpose of a development bank in an economy?

a) Regulating interest rates

b) Providing short-term loans to individuals

c) Promoting long-term economic development projects

d) Enforcing tax policies

Answer: c) Promoting long-term economic development projects

Question: Which market structure is characterized by a few large firms dominating the market?

a) Oligopoly

b) Perfect competition

c) Monopolistic competition

d) Monopoly

Answer: a) Oligopoly

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

a) Cross elasticity of demand

b) Price elasticity of supply

c) Income elasticity of demand

d) Price elasticity of demand

Answer: c) Income elasticity of demand

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

a) Subsidy provided by the government

b) Tax imposed on imports or exports

c) Quota limiting the quantity of goods traded

d) Agreement between countries to reduce trade barriers

Answer: b) Tax imposed on imports or exports

Question: What is the term for the total value of a country's output in a given time period after deducting the depreciation of capital?

a) Net national product

b) Gross national product

c) Net domestic product

d) Gross domestic product

Answer: c) Net domestic product

Question: Which of the following is a tool of fiscal policy used by the government to influence the economy?

a) Open market operations

b) Discount rate

c) Changes in government spending and taxation

d) Reserve requirements

Answer: c) Changes in government spending and taxation

Question: What is the term for the measure of how much the quantity demanded of a good responds to a change in the price of another good?

a) Elasticity of demand

b) Cross elasticity of demand

c) Income elasticity of demand

d) Elasticity of supply

Answer: b) Cross elasticity of demand

Question: Which of the following is a factor of production representing natural resources used in the production process?

a) Labor

b) Capital

c) Entrepreneurship

d) Land

Answer: d) Land

Question: What is the primary function of the International Labour Organization (ILO)?

a) Regulating global interest rates

b) Promoting fair labor standards and social protection

c) Providing financial assistance for development projects

d) Enforcing international copyright laws

Answer: b) Promoting fair labor standards and social protection

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

a) Gross national product

b) Net domestic product

c) Gross domestic product

d) National income

Answer: a) Gross national product

Question: Which of the following is a measure of the average level of prices of a fixed basket of goods and services over time?

a) Gross domestic product (GDP)

b) Consumer Price Index (CPI)

c) Producer Price Index (PPI)

d) Gross national product (GNP)

Answer: b) Consumer Price Index (CPI)

Question: What is the term for the situation where a country's imports exceed its exports?

a) Trade surplus

b) Trade deficit

c) Balance of payments surplus

d) Balance of payments deficit

Answer: b) Trade deficit

Question: Which of the following is a characteristic of perfect competition?

a) Many sellers, similar but not identical products

b) One seller, unique product

c) Few sellers, identical products

d) Many sellers, identical products

Answer: d) Many sellers, identical products

Question: What is the term for the quantity of a good or service that producers are willing and able to offer for sale at different prices in a given time period?

a) Quantity demanded

b) Quantity supplied

c) Market demand

d) Market supply

Answer: b) Quantity supplied

Question: Which of the following is a characteristic of a recession?

a) Rising prices

b) High levels of employment

c) Economic contraction and falling GDP

d) Stable interest rates

Answer: c) Economic contraction and falling GDP

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

a) Regulating international trade

b) Setting standards for labor practices

c) Controlling global oil prices

d) Promoting environmental sustainability

Answer: c) Controlling global oil prices