SS3 third Term economics past questions and answers

SS3 third Term economics past questions and answers

Here they are;

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

a) Progressive tax rates decrease with income, while proportional tax rates increase with income

b) Progressive taxes take a larger percentage from high-income earners, while proportional taxes take an equal percentage from all income levels

c) Progressive taxes are determined by market forces, while proportional taxes are set by the government

d) Progressive tax rates are fixed, while proportional tax rates vary with income

Answer: b) Progressive taxes take a larger percentage from high-income earners, while proportional taxes take an equal percentage from all income levels

Question: Define the term "comparative advantage" in international trade.

a) Each country should produce everything it needs

b) Countries should focus on producing goods they can produce most efficiently

c) A country should only export high-tech goods

d) Importing goods is always better than producing domestically

Answer: b) Countries should focus on producing goods they can produce most efficiently

Question: What is the concept of a perfectly elastic demand curve in microeconomics?

a) Quantity demanded is unaffected by changes in price

b) Quantity demanded changes significantly with small changes in price

c) Demand is infinite at any price level

d) Demand is zero at all price levels

Answer: a) Quantity demanded is unaffected by changes in price

Question: How does the concept of "marginal utility" relate to consumer behavior?

a) It measures the total satisfaction derived from consuming a good

b) It represents the additional satisfaction gained from consuming one more unit of a good

c) It measures the monetary value of consuming a good

d) It represents the average satisfaction of consuming a good

Answer: b) It represents the additional satisfaction gained from consuming one more unit of a good

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

a) Regulating international financial markets

b) Promoting environmental sustainability

c) Controlling global oil prices and coordinating oil production policies

d) Facilitating trade agreements between member countries

Answer: c) Controlling global oil prices and coordinating oil production policies

Question: Explain the concept of "creative destruction" in economic theory.

a) The process of creating new industries without destroying existing ones

b) The elimination of outdated industries to make way for new and more efficient ones

c) The government's role in controlling market forces

d) The concept of innovation without any impact on existing industries

Answer: b) The elimination of outdated industries to make way for new and more efficient ones

Question: What is the difference between a trade barrier and a trade subsidy?

a) Both restrict international trade

b) Trade barriers promote exports, while trade subsidies restrict imports

c) Trade barriers facilitate free trade, while trade subsidies protect domestic industries

d) Trade barriers restrict imports, while trade subsidies promote exports

Answer: d) Trade barriers restrict imports, while trade subsidies promote exports

Question: Define the term "liquidity" in financial markets.

a) The ease with which an asset can be converted into cash

b) The total value of assets held by an individual or a company

c) The percentage of income spent on goods and services

d) The level of risk associated with an investment

Answer: a) The ease with which an asset can be converted into cash

Question: What is the role of the Consumer Surplus in microeconomics?

a) The total revenue generated by consumers

b) The additional satisfaction gained from consuming one more unit of a good

c) The difference between what consumers are willing to pay and what they actually pay for a good

d) The amount of money consumers save when prices decrease

Answer: c) The difference between what consumers are willing to pay and what they actually pay for a good

Question: In the context of market structures, what characterizes a monopolistic competition?

a) A large number of sellers with similar products

b) A single seller dominating the market

c) Few sellers with differentiated products

d) Complete absence of competition

Answer: c) Few sellers with differentiated products

Question: What is the concept of the Lorenz Curve in income distribution?

a) A curve showing the relationship between supply and demand

b) A curve representing the production possibilities of an economy

c) A graphical representation of income inequality

d) A curve depicting the impact of taxes on consumer behavior

Answer: c) A graphical representation of income inequality

Question: Define the term "fiscal policy."

a) Policies aimed at regulating the money supply and interest rates

b) Government policies related to taxation and spending

c) Policies related to international trade agreements

d) Policies aimed at controlling inflation

Answer: b) Government policies related to taxation and spending

Question: What is the role of the World Health Organization (WHO) in the global economy?

a) Facilitating negotiations and resolving trade disputes

b) Promoting global environmental sustainability

c) Regulating international financial markets

d) Coordinating international health efforts and providing health-related assistance

Answer: d) Coordinating international health efforts and providing health-related assistance

Question: Explain the concept of "price elasticity of demand."

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

b) The responsiveness of quantity demanded to a change in price

c) The government's control over supply and demand

d) The level of competition among suppliers

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

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

a) To promote free trade between countries

b) To restrict imports and protect domestic industries

c) To regulate the exchange rates between currencies

d) To facilitate negotiations and resolve trade disputes

Answer: b) To restrict imports and protect domestic industries