Senior Secondary School 2 Third Term Economics Questions with options and answers:
Question: What is the role of the Fiscal Policy in an economy?
A) Regulation of interest rates
B) Control of money supply
C) Management of government spending and taxation
D) Facilitation of international trade
Answer: C) Management of government spending and taxation
Question: Define the term “Globalization.”
A) Economic self-sufficiency
B) Integration of national economies through trade and investment
C) Control of domestic industries
D) Government ownership of major enterprises
Answer: B) Integration of national economies through trade and investment
Question: What is the function of the Economic Community of West African States (ECOWAS)?
A) Regulation of global financial markets
B) Promotion of human rights
C) Facilitation of economic integration in West Africa
D) Environmental protection
Answer: C) Facilitation of economic integration in West Africa
Question: In microeconomics, what does the Law of Diminishing Marginal Utility state?
A) As quantity demanded increases, price decreases
B) As quantity demanded increases, satisfaction decreases
C) As quantity supplied increases, price increases
D) As quantity supplied increases, satisfaction decreases
Answer: B) As quantity demanded increases, satisfaction decreases
Question: Which market structure is characterized by a single seller with significant control over the market?
A) Monopoly
B) Oligopoly
C) Perfect competition
D) Monopolistic competition
Answer: A) Monopoly
Question: What is the purpose of the Development Bank of Nigeria (DBN)?
A) Regulation of interest rates
B) Facilitation of international trade
C) Provision of long-term financing to the private sector
D) Control of government expenditure
Answer: C) Provision of long-term financing to the private sector
Question: Define the term “Trade Surplus.”
A) Excess of exports over imports
B) Excess of imports over exports
C) Equal value of imports and exports
D) Absence of international trade
Answer: A) Excess of exports over imports
Question: Which type of unemployment is associated with fluctuations in economic activities?
A) Frictional unemployment
B) Structural unemployment
C) Cyclical unemployment
D) Seasonal unemployment
Answer: C) Cyclical unemployment
Question: What is the significance of the Laffer Curve in fiscal policy?
A) Relationship between government spending and economic growth
B) Relationship between inflation and unemployment
C) Relationship between tax rates and government revenue
D) Relationship between interest rates and investment
Answer: C) Relationship between tax rates and government revenue
Question: Which economic indicator measures the level of prices for goods and services excluding food and energy?
A) Gross Domestic Product (GDP)
B) Consumer Price Index (CPI)
C) Producer Price Index (PPI)
D) Unemployment rate
Answer: C) Producer Price Index (PPI)
Question: Define the term “Supply-side Economics.”
A) Focus on managing demand through fiscal and monetary policies
B) Focus on increasing production and efficiency in the economy
C) Focus on international trade and balance of payments
D) Focus on social welfare programs
Answer: B) Focus on increasing production and efficiency in the economy
Question: What is the purpose of the African Development Bank (AfDB)?
A) Regulation of global financial markets
B) Promotion of human rights
C) Facilitation of economic development in African countries
D) Environmental protection
Answer: C) Facilitation of economic development in African countries
Question: Which economic system allows for a significant role of the government in planning and controlling the economy?
A) Capitalism
B) Socialism
C) Communism
D) Mixed economy
Answer: B) Socialism
Question: What is the purpose of the Securities and Exchange Commission (SEC) in the context of financial markets?
A) Regulation of interest rates
B) Protection of investors and regulation of securities markets
C) Management of fiscal policies
D) Facilitation of international trade
Answer: B) Protection of investors and regulation of securities markets
Question: Define the term “Trade Deficit.”
A) Excess of exports over imports
B) Excess of imports over exports
C) Equal value of imports and exports
D) Absence of international trade
Answer: B) Excess of imports over exports
Question: What is the role of the National Insurance Commission (NAICOM) in an economy?
A) Regulation of interest rates
B) Regulation and supervision of the insurance industry
C) Management of fiscal policies
D) Control of foreign exchange rates
Answer: B) Regulation and supervision of the insurance industry
Question: Which economic indicator measures the percentage change in the total quantity of goods and services produced over time?
A) Gross Domestic Product (GDP)
B) Consumer Price Index (CPI)
C) Unemployment rate
D) Balance of trade
Answer: A) Gross Domestic Product (GDP)
Question: Define the term “Progressive Taxation.”
A) Tax system where the tax rate increases as income increases
B) Tax system where the tax rate decreases as income increases
C) Equal tax rate for all income levels
D) Absence of taxation
Answer: A) Tax system where the tax rate increases as income increases
Question: What is the purpose of the Central Bank’s Open Market Operations (OMO)?
A) Regulation of interest rates
B) Control of money supply
C) Facilitation of international trade
D) Promotion of economic integration
Answer: B) Control of money supply
Question: Which economic organization aims to promote sustainable development by addressing environmental issues and global poverty?
A) United Nations (UN)
B) International Monetary Fund (IMF)
C) World Health Organization (WHO)
D) World Bank
Answer: A) United Nations (UN).
FAQs
What topics are covered in SS2 Third Term Economics past questions?
SS2 Third Term Economics past questions typically cover topics such as demand and supply, production and costs, national income, money and banking, and international trade. These questions often test both theoretical understanding and application through multiple-choice and structured questions.
How can I effectively use past questions to prepare for exams?
To prepare effectively, review past questions alongside your lesson notes and textbooks. Identify recurring question patterns, practice answering under timed conditions, and focus on areas where you consistently make mistakes. This approach helps build both knowledge and exam confidence.
Are the answers to SS2 Third Term Economics past questions reliable?
Yes, the answers provided in past question compilations are generally reliable, as they are based on previous exam standards. However, it’s important to understand the reasoning behind each answer rather than just memorizing it, since exams may present similar questions in slightly different ways.
Can practicing past questions guarantee a high score in Economics exams?
Practicing past questions significantly improves your chances of performing well, but it does not guarantee a perfect score. Success also depends on your understanding of concepts, ability to apply economic principles to new problems, and exam strategy such as time management and clear presentation of answers.
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