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Most Frequent 40 Questions in O Level Economics


1. What is opportunity cost?
2. What are the four factors of production and their rewards?
3. What factors affect the demand for a normal product?
4. What are the advantages and disadvantages of specialization?
5. What are the functions of a central bank?
6. What is a multinational company?
7. Name the three types of integration and describe them?
8. What are the functions of a trade union?
9. Distinguish between Private and Public limited companies?
10. Compare Private sector and Public sector?
11. What factors affect supply of goods?
12. What are the reasons for wage differentials within the same occupation?
13. What are the reasons for wage differentials between occupations?
14. What factors affect consumer spending?
15. What factors affect consumer saving?
16. List the three sectors of economy and describe them with examples?
17. Distinguish between fixed cost and variable cost?
18. What are the advantages of economies of scale?
19. Distinguish between direct and indirect tax?
20. What are the usual aims of the government?
21. Describe the types of unemployment?
22. Distinguish between capital account and current account?
23. Distinguish between visible trade and invisible trade? Give examples.
24. What factors affect the size of population?
25. What are the problems of a higher population?
26. What are the indicators of a country’s living standard?
27. Compare Private cost and External cost? Give examples.
28. Describe Social cost?
29. What is meant by Capital expenditure?
30. What are the features of market economy?
31. What is meant by Price Mechanism? Explain how it works.
32. Compare market and planned economy?
33. What factors influence consumer income?
34. What is a developing country?
35. What are the differences found in the population structure of a developed and a developing country?
36. What are the reasons for taxation?
37. What are public goods? Give examples.
38. Why are public goods normally provided by the government but not private sector?
39. Describe the types of resources?
40. Explain the three causes of inflation?

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