Economics Multiple Choice Question – 23 August 2018

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

John has just completed an original oil painting. After considering the production costs for brushes, paint, canvas, and the value of John’s labor time, the opportunity cost of the painting is £1,000. Luckily for John, one art lover paid him £1,500.  How much producer surplus did John obtain?

Select ONE answer:

  1. The amount of producer surplus cannot be determined from the information given.
  2. £500
  3. £1,500
  4. £1,000

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 2

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