Day: January 15, 2018

Economics Multiple Choice Question – 15 January 2018

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

The “income effect” in the market for aspirin means that ….?

Select ONE answer:

  1. A decrease in the price of a substitute good like acetaminophen will make aspirin takers 
feel a little poorer than they were before.
  2. Aspirin is generally taken by people with higher than average incomes.
  3. An increase in the price of aspirin will reduce the total purchasing power of aspirin-takers, making them able to afford fewer aspirin.
  4. An increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.

What is meant by “ceteris paribus”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3

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