Economics Multiple Choice Question – 6 November 2017

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

Economics

Which of the following conditions must be satisfied if a good is to be supplied through the market?

Select ONE answer:

  1. There are a large number of buyers and sellers
  2. There are no restrictions on the entry of new firms into the industry
  3. The goods supplied by different suppliers are homogeneous
  4. Those unwilling to pay for the good can be excluded from the benefits
  5. There are lots of market signals

Give the advantages and disadvantages of a centrally planned economy?

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

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

The answer is 4 – The key to this question is in understanding the term ‘market’. It does not say ‘supplied through a perfectly competitive market’. Consider answers 1, 2, and 3. These are all necessary if a good is to be supplied under conditions of perfect competition. But now look again at 4 – If a producer cannot exclude people from the benefits of his output he cannot oblige them to pay. This is a feature of a public good of course.

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

Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s