Economics Multiple Choice Question – 17 August 2018

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

The closer the substitutes for a good, the …….

Select ONE answer:

  1. more elastic is the demand for the good.
  2. less elastic is the demand for the good.
  3. smaller the degree of substitutability between the goods.
  4. larger the proportion of income that is spent on the good.

Explain what is the use of supply and demand diagrams to depict excess supply and excess demand:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Economics Multiple Choice Question – 16 August 2018

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

If the price of petrol fell from £1.35 to £1.25 per litre, your expenditure on gasoline would increase if your price elasticity of demand for petrol equals…….

Select ONE answer:

  1. 1.1
  2. 0.9
  3. 1.0
  4. Total revenue would increase at all of the above elasticities.

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Economics Multiple Choice Question – 15 August 2018

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

The price elasticity of demand for maize is 0.4. A new hybrid of maize is discovered and all farmers start to use it, which increases the quantity of maize they can produce from each acre.  What happens to the farmers’ total revenue?

Select ONE answer:

  1. The total revenue will not change.
  2. The total revenue will increase.
  3. The total revenue will decrease.
  4. There is not enough information to determine what happens to the total revenue.

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

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Economics Multiple Choice Question – 14 August 2018

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

In 1973 and again in 1979, the Organisation of Petroleum Exporting Countries (OPEC) raised the world price of crude oil and increased their revenue as well. Which of the following is a true statement regarding these OPEC price hikes?

Select ONE answer:

  1. Their revenue would have increased regardless of income elasticity or price elasticity because oil is an imported product for most nations.
  2. Their revenue only increased because oil was already very expensive.
  3. Their revenue increased because the demand for oil was income inelastic.
  4. Their revenue increased because the demand for oil was price inelastic.

Explain what is the equilibrium price and quantity and how they are determined:

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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Economics Multiple Choice Question – 13 August 2018

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

If the University of Chicago increased its season American Football ticket sales from 43,000 to 48,000 when it lowered price from $350.00 to $300.00, then its demand for season tickets must be?

Select ONE answer:

  1. inelastic because total revenue increased when the price was lowered.
  2. elastic because total revenue increased when the price was lowered.
  3. inelastic because total revenue decreased when the price was lowered.
  4. elastic because total revenue decreased when the price was lowered.

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

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Economics Multiple Choice Question – 12 August 2018

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

According to the total revenue test, a price cut increases total revenue if demand is …..

Select ONE answer:

  1. inelastic.
  2. elastic.
  3. perfectly inelastic. 
  4. unit elastic.

Explain how external shocks may cause a shift in the supply curve:

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 2

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Economics Multiple Choice Question – 11 August 2018

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

If the demand curve is a downward sloping straight line, the price elasticity of demand always …..

Select ONE answer:

  1. decreases with movements upward to the left along the demand curve.
  2. increases as the demand curve shifts leftward.
  3. increases with movements upward to the left along the demand curve.
  4. increases as the demand curve shifts rightward.

Explain how changes in the number of firms in an industry may cause a shift in the supply curve:

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

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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