Economics Multiple Choice Question – 10 December 2018

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

In the long run, for a perfectly competitive market ……. ?

Select ONE answer:

  1. if economic profit is equal to zero then there is no entry or exit of firms into or out of the market.
  2. if economic profit is greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
  3. if economic profit is less than zero, then some firms will exit the market and the industry supply curve will shift leftward.
  4. All of the above answers are correct.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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Economics Multiple Choice Question – 9 December 2018

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

In the short run, an increase in demand for a product that is sold in a perfectly competitive market will ……. ?

Select ONE answer:

  1. cause more firms to shut down.
  2. increase the number of firms in the market.
  3. increase the profits of existing firms in the market.
  4. have no effect on the price.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Economics Multiple Choice Question – 8 December 2018

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

A firm’s short-run supply curve is the same as ……. ?

Select ONE answer:

  1. that portion of its marginal cost curve that lies above average fixed cost.
  2. that portion of its marginal cost curve that lies above average total cost.
  3. its entire marginal cost curve.
  4. that portion of its marginal cost curve that lies above average variable cost.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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Economics Multiple Choice Question – 7 December 2018

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

In the short run, a perfectly competitive firm’s economic profits ……. ?

Select ONE answer:

  1. must be positive.
  2. must be negative, that is the firm must incur an economic loss.
  3. might be positive, negative (an economic loss), or zero (a normal profit).
  4. must equal zero, that is the firm must earn a normal profit.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Economics Multiple Choice Question – 6 December 2018

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

John’s Pizza is a perfectly competitive firm. The firm’s costs are shown in the table below.

Table 38

If the market price is $15, the firm will ……. ?

Select ONE answer:

  1. stay in the industry in the long run.
  2. shut down.
  3. make an economic profit.
  4. leave the industry in the long run.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Economics Multiple Choice Question – 5 December 2018

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

John’s Pizza is a perfectly competitive firm. The firm’s costs are shown in the table below.

Table 38

If the market price is £20, how much economic profit does the firm make?

Select ONE answer:

  1. £12
  2. -£20
  3. £0
  4. -£10

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Economics Multiple Choice Question – 4 December 2018

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

A firm’s shutdown point is the output and price at which the firm just covers its ……… ?

Select ONE answer:

  1. marginal cost.
  2. total variable cost.
  3. total cost.
  4. total fixed cost.

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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