These Economics question and answers were pulled from our book ( Economics questions for SS3); Compiled to serve as a reference material to help teachers draw up test and exam questions faster. It could also help students assess their level of exam preparation. Each sample question includes correct answers.
Sample Economics Exam Questions and Answers
TOPIC: ECONOMIC DEVELOPMENT AND PLANNING
DIRECTION: Choose the correct answer from the lettered options.
1. The following factors account for the slow pace of economic development EXCEPT _______.
A. high population growth rate
B. inadequate capital
C. inadequate infrastructural facilities
D. large market and effective demand
2. The maintenance of general economic stability in a country necessarily relies heavily on ______.
A. the federal fiscal policy
B. coordinated federal, state, and local fiscal policies
C. federal grants to states and local governments
D. federal grants to local governments only
E. none of the above
3. Which of the following policies is least likely to increase growth in an underdeveloped country?
A. Increased restrictions on importing foreign-made goods.
B. An increase in political stability.
C. Increased spending on public education.
D. Ban on indigenous products.
4. The opportunity cost of an increase in economic growth is _______.
A. a reduction in current savings
B. a reduction in current consumption
C. a reduction in the level of investment spending
D. an increase in government spending to control the resulting inflation
5. An injection of funds into a less developed country might set off ______.
A. the multiplier
B. unemployment
C. underdevelopment
D. infant mortality
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TOPIC: MARKET STRUCTURE AND REVENUE CONCEPTS
DIRECTION: Choose the correct answer from the lettered options.
1. In monopoly in long run equilibrium:
A. the firm is productively efficient
B. the firm is allocatively inefficient
C. the firm produces where Marginal cost is less than Marginal Revenue
D. the firm produces at the social optimal level
2. In a free market, the combination of products will be determined by ______
A. market forces of demand and supply
B. the government
C. the law
D. the public sector
3. In the long run in perfect competition _______
A. the price equals the Total Revenue
B. firms are allocatively inefficient
C. firms are productively efficient
D. the price equals Total Cost
4. Firms in oligopoly are likely to:
A. invest heavily in branding
B. act independently of other firms
C. try to differentiate its product
D. try to be a price maker
5. Total revenue is always equal to ______.
A. Marginal Revenue multiplied by Quantity Sold
B. Average Revenue plus Marginal Revenue
C. Marginal Revenue multiplied by Marginal Cost
D. Average Revenue multiplied by Quantity Sold
