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Year 12 First Term Economics CA Test Questions

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

One lesson from Japan for developing countries is the promotion of

a)

Import-oriented industries

b)

World-class export-oriented industries

c)

Subsistence agriculture

d)

Service sector only

2.

Massive investments in infrastructure and heavy manufacturing were key to

a)

Asian Tigers' development

b)

Japanese Miracle

c)

European revolutions

d)

Nigerian economy

3.

Adaptation of foreign technology was a factor in

a)

Asian Tigers' IT development

b)

Japan's economic growth

c)

Europe's agrarian revolution

d)

Brain drain in Nigeria

4.

A lesson from Europe for developing countries is

a)

Economic isolation

b)

Economic integration or cooperation

c)

Reliance on agriculture

d)

Import substitution

5.

Europe's export-oriented economies involved buying cheap raw materials from

a)

Developed countries

b)

Developing countries

c)

Asian Tigers

d)

Japan

6.

The agrarian and industrial revolutions in Britain led to

a)

Decreased investment

b)

Discoveries and inventions

c)

Reduced education

d)

High unemployment

7.

Europe has a well-developed financial sector that facilitates

a)

Easy accumulation and transfer of capital

b)

High inflation

c)

Low savings

d)

Dependency on aid

8.

Human capital development is an important contributor to economic growth according to

a)

Classical theory

b)

Modern growth theory

c)

Keynesian theory

d)

Mercantilist theory

9.

Individuals with more education tend to have

a)

Lower earnings

b)

Better employment opportunities and greater earnings

c)

Reduced productivity

d)

No impact on output

10.

Human capital refers to the stock of

a)

Physical assets

b)

Competencies, skills, and knowledge

c)

Natural resources

d)

Financial capital

11.

A factor affecting the efficiency of human capital is

a)

Decreased education

b)

Increased level of education

c)

Poor health conditions

d)

Low standard of living

12.

On-the-job training increases the efficiency of human capital by

a)

Reducing skills

b)

Enhancing worker skills

c)

Lowering productivity

d)

Increasing dependency

13.

Brain drain is also known as

a)

Capital flight

b)

Human capital development

c)

Internal migration

d)

Skill enhancement

14.

A reason for brain drain is

a)

Better social environment in source countries

b)

Poor social environment in source countries

c)

Low opportunities in host countries

d)

Political stability in source countries

15.

An effect of brain drain on Nigeria's economy is

a)

Increased professional skills

b)

Loss of professional skills and talents

c)

Higher tax revenue

d)

Reduced poverty

16.

Brain drain leads to capital waste because

a)

Resources used in training are lost

b)

It increases employment

c)

It boosts wealth creation

d)

It reduces unemployment

17.

To arrest brain drain, there should be

a)

Poor leadership

b)

Committed and selfless leadership

c)

Inadequate working conditions

d)

Value disorientation

18.

Domestic trade involves exchange of goods and services

a)

Between countries

b)

Among residents of a country

c)

Across continents

d)

In foreign markets

19.

A similarity between international and domestic trade is

a)

Use of different currencies

b)

Restriction by tariffs

c)

Use of money as medium of exchange

d)

Immobility of factors

20.

A difference between international and domestic trade is

a)

No use of middlemen

b)

Use of local currency in international trade

c)

Restrictions like tariffs in international trade

d)

Free mobility of factors in international trade

21.

A reason for international trade is

a)

Even distribution of natural resources

b)

Uneven distribution of natural resources

c)

Self-sufficiency of all countries

d)

Equal capital stock

22.

Differences in climate and soil lead to

a)

Cultivation of same crops

b)

Cultivation of different crops

c)

No trade

d)

Domestic focus only

23.

A barrier to international trade is

a)

Similar currencies

b)

Differences in currency

c)

No distance issues

d)

Same languages

24.

An advantage of international trade is

a)

Overdependence on one country

b)

Source of revenue for nations

c)

Reduced world output

d)

Unemployment generation

25.

A disadvantage of international trade is

a)

Efficient resource allocation

b)

Overdependence on other countries

c)

Increased standard of living

d)

Employment opportunities

26.

The theory of comparative cost advantage was propounded by

a)

Adam Smith

b)

David Ricardo

c)

John Keynes

d)

Karl Marx

27.

Comparative advantage means a country specializes in goods with

a)

Highest opportunity cost

b)

Lowest opportunity cost

c)

Equal cost

d)

No cost

28.

An assumption of comparative cost theory is

a)

Multiple countries and goods

b)

Only two countries and two goods

c)

Variable technology

d)

Transport costs included

29.

In the comparative cost illustration, Nigeria has advantage in

a)

Rice

b)

Cocoa

c)

Both

d)

Neither

30.

With specialization and trade, total output

a)

Decreases

b)

Increases

c)

Remains the same

d)

Fluctuates

31.

A shortcoming of comparative cost theory is

a)

Realistic assumptions

b)

Ignores transport costs

c)

Includes multiple goods

d)

Variable costs

32.

Globalization's meaning includes

a)

Economic isolation

b)

Integration of world economies

c)

National focus

d)

Trade restrictions

33.

A challenge of globalization to Nigeria is

a)

Increased self-sufficiency

b)

Overdependence on imports

c)

Reduced competition

d)

High local production

34.

An opportunity of globalization for Nigeria is

a)

Cultural erosion

b)

Access to wider markets

c)

Increased unemployment

d)

Balance of payment surplus

35.

The Asian Tigers had slow population growth which reduced

a)

Savings

b)

Dependency ratios

c)

Investments

d)

Wages

36.

Purposeful leadership in Asian Tigers served

a)

Personal interests

b)

People's interests

c)

Foreign agendas

d)

Corruption

37.

In Japan, high saving rates were accompanied by

a)

Low investments

b)

High levels of investment

c)

Reduced research

d)

Import focus

38.

Europe's massive investment in education led to

a)

Low human capital

b)

Human capital development

c)

Agrarian focus

d)

Unemployment

39.

Brain drain encourages individuals to

a)

Reduce education

b)

Acquire greater education and skills

c)

Stay unskilled

d)

Lower ambitions

40.

An effect of brain drain on destination countries is

a)

Lower skills

b)

Higher labor skills available

c)

Reduced production

d)

Increased poverty