Economics focuses on the behavior and interactions of economic agents and how economies work. But, in this article, we want to focus on the top examination question and answer on economics for secondary school students.
1.Q.Which is NOT an example of bundling?
A. An extra value meal at Wendy’s
B. A buy-one-get-one-half-off sale at Foot Locker
C. Microsoft Office
D. A large tub of popcorn at the movie theatre
Ans. The answer is D.
2.Q.An inelastic demand for labor means that an increase in the wage rate causes a less than proportionate decrease in the quantity of labor demanded.
Ans: A True.
3.Q: A federal budget deficit occurs when:
A. aggregate demand is greater than aggregate supply
B. there is deflation
C. there is inflation
D. Federal government purchases exceed net taxes
Ans:D. Federal government purchases exceed net taxes
4.Q: Why are command economies usually less efficient than market economies?
Ans: Command economies are often less efficient than market economies because economic decisions are not directly informed by consumer need.
5.Q.The term inferior goods refer to what kind of goods?
Ans: Inferior goods refer to goods, and even services, that are consumed or availed less by the market in the event that people’s income increases.
6.Q: What does pro rata mean?
Ans: Pro-rata means in proportion.
7.Q: What is another term for the free enterprise system?
Ans: There are several terms for the free enterprise system, but the most common is capitalism, referring to the ability of the system to generate capital (or money earned from selling goods).
8.Q: A government is a laissez-faire when it
Ans: A government is a laissez-faire when it has a minimal role in the regulation of the economy.
9.Q: What is true about economic resources?
Ans: Economic resources are those goods and services that can be converted into valuable products for individual and business purposes.
10.Q: What is a barter economy?
Ans: A barter economy is where goods and services are exchanged by parties without the use of money to make the trade.
11.Q: Real GDP divided by the total population is?
Ans: Real GDP divided by the total population is the per capita GDP of a nation.
12.Q: What are the advantages of domestic trade?
Ans: There are several advantages of domestic trade. First and foremost, the supply chains are shorter, which means that the transportation of goods requires less cost and effort compared with shipping overseas. Second, domestic trade is usually done without restrictive tariffs or policies that affect the cost of trade, while international trade may require additional costs due to policies set in place by another nation. Finally, domestic trade builds partnerships between industries, making it possible to keep customers and suppliers in place rather than searching for more cost-efficient networks on the international market.
13.Q: When the government runs a deficit, which of the following is true?
a. T > TR – G
b. G > T + TR
c. G > TR – T
d. T < G + TR
Ans:c. G > TR – T
14.Q: Resources are efficiently allocated when production occurs where?
Ans: Resources are efficiently allocated when production occurs where price equals marginal cost.
15.Q: What will an effective price floor do?
Ans: An effective price floor will result in decreasing demand for a good or services and increasing their supply.