Business Studies Multiple Choice Question – 31 October 2018

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

Williams is a small pottery business specialising in manufacturing ceramic plates. The table below contains the financial information for January.

Table 30

Calculate the Total Costs for Williams during the month of January.  Select ONE answer only:

  1. £600
  2. £1,200
  3. £1,800
  4. £2,400

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

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

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 2 – FC + Total VC = £600 + (£3 * 200) = £1,200

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Economics Multiple Choice Question – 30 October 2018

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

When long-run average cost increases as output increases there are …….?

Select ONE answer:

  1. Constant returns to scale.
  2. Economies of scale.
  3. Diseconomies of scale.
  4. None of the above.

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 – 29 October 2018

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

If Apple could produce more computers at lower long-run average cost by increasing the quantity of the inputs it uses, Apple definitely would experience …….?

Select ONE answer:

  1. Decreasing marginal returns.
  2. Economies of scale.
  3. Increasing marginal returns.
  4. Diseconomies of scale.

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 2

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Economics Multiple Choice Question – 28 October 2018

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

Economies of scale …….?

Select ONE answer:

  1. Lead to rising long-run average costs as output increases.
  2. Occur when management complexity brings rising average cost.
  3. Occur if output more than doubles when capital and labor double.
  4. Occur if output less than doubles when capital and labor double.

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 – 27 October 2018

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

The long-run average cost curve is the …….?

Select ONE answer:

  1. Change in total product divided by the change in capital when the quantity of labor is constant.
  2. Relationship between the lowest attainable average total cost and output when both the 
plant size and labor are fixed.
  3. Change in output resulting from a one-unit increase in the quantity of capital.
  4. Relationship between the lowest attainable average total cost and output when both the 
plant size and labour are varied.

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 – 26 October 2018

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

Increasing marginal returns means that as the firm expands its output, its …….?

Select ONE answer:

  1. Long-run average total cost increases.
  2. Long-run average total cost decreases.
  3. Short-run average total cost decreases.
  4. Short-run average total cost increases.

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 – 25 October 2018

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

In the figure below, when 20 units are produced the marginal cost is?

Table 29

Select ONE answer:

  1. $8.
  2. More than $8 and less than $16.
  3. Less than $8.
  4. None of the above answers is 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 3

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