Economics Multiple Choice Question – 19 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A government subsidised a new factory in a rural area to create jobs. It also provided training courses at a college. Objectors claimed the development would destroy an area of natural beauty.

What concepts are involved in this statement?

Select ONE answer:

  1. economic growth, resource allocation, free market equilibrium
  2. government intervention, monetary policy, opportunity cost
  3. public good, market prices, fiscal policy
  4. supply-side policy, negative externalities, factors of production

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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Economics Multiple Choice Question – 18 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Using all available resources an economy produces different combinations of two types of good, clothes and food, shown on the production possibility curve (PPC) diagram.

Diagram 22

What does the PPC indicate?

Select ONE answer:

  1. It is more efficient to produce more of clothes than food.
  2. It is only possible to increase the output of clothes by reducing the output of food.
  3. The best situation is to produce equal units of clothes and food.
  4. The cost of producing a unit of clothes is always higher than the cost of producing a unit of food.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 17 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which accounting objective is being applied when financial information affects business decisions?

Select ONE answer:

  1. comparability
  2. relevance
  3. reliability
  4. understandability

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 16 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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What is the going concern principle?

Select ONE answer:

  1. Accounting records are prepared assuming that the business will continue to operate in the foreseeable future.
  2. Income and expense should be accounted for in the same way they were accounted for in previous periods.
  3. Profit should not be anticipated and losses should be written off as soon as they are known.
  4. Revenue and costs should be recognised as they are earned or incurred, not when the money is received or paid.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 15 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which one of the costs below is normally classified as an indirect cost?

Select ONE answer:

  1. carriage inwards
  2. factory rent
  3. production materials
  4. production wages

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.