Economics Multiple Choice Question – 31 March 2019

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

Which of the following is a feature of a market economy?

Select ONE answer:

  1. Competition ensures product differentiation
  2. Consumer preferences determine the allocation of resources
  3. Producers aim to maximise positive externalities
  4. Resources are allocated through the planning mechanism

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

  1. Competition ensures that firms strive to minimise their average costs and achieve productive efficiency.
  2. Correct: Changes in demand patterns by consumers lead to changes in the allocation of resources.
  3. Consumers aim to maximise their individual welfare.
  4. Resources are allocated through the price mechanism.

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Economics Multiple Choice Question – 30 March 2019

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

Which of the following, according to classical economic theory, is it assumed that a firm will seek to maximise?

Select ONE answer:

  1. Customer satisfaction
  2. Economic welfare
  3. Productive efficiency
  4. 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 4

  1. The consideration of stakeholders and their needs is relatively new; it is not traditional economic theory.
  2. This is a result of government taxation policies rather than an objective.
  3. This isn’t an objective.
  4. Correct: Firms have a profit motive, they’ll produce where MR=MC.

 

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Economics Multiple Choice Question – 29 March 2019

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

Which of the following is a consequence of using money rather than a barter system?

Select ONE answer:

  1. It decreases specialisation
  2. It decreases the ease of borrowing
  3. It decreases the need for a double coincidence of wants
  4. It decreases trade

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

  1. It will increase specialisation because money is easier to exchange for an economic good.
  2. It will increase the ease of borrowing because money is easier to exchange for an economic good
  3. Correct: It will decrease the need for a double coincidence of wants because there is no longer the need to find two persons whose disposable processions mutually match each other’s wants.
  4. It will increase trade because money is easier to exchange for an economic good.

 

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Economics Multiple Choice Question – 28 March 2019

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

Which of the following describes a free good?

Select ONE answer:

  1. A free good is one given away to consumers to promote the sale of other goods
  2. A free good is one provided free of charge to consumers by the government
  3. A free good is one that gives zero satisfaction to consumers
  4. A free good is one that has zero opportunity 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

  1. Subsidised by retailer/producer.
  2. Subsidised by the government.
  3. Zero marginal utility.
  4. Correct: Definition.

 

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Business Studies Multiple Choice Question – 27 March 2019

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

Identify ONE method the Staffordshire Crisp Company could use to improve its cash flow.

Select ONE answer:

  1. Allow Tesco supermarkets to pay later
  2. Pay potato farmers earlier
  3. Purchase new machinery
  4. Reduce its stocks of potatoes

 

Show the 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 4

  1. Allow Tesco supermarkets to pay later – incorrect because this means The Staffordshire Crisp Company will be lengthening its debtors’ period. This will cause cash flow to deteriorate.
  2. Pay potato farmers earlier – incorrect because this means the Staffordshire Crisp Company will be shortening its creditors’ period. This will cause cash flow to deteriorate.
  3. Purchase new machinery – incorrect because this involves significant capital outlay, which will increase cash outflows. This will cause cash flow to deteriorate.
  4. Reduce its stocks of potatoes – correct because this would release cash tied up in stock, which would improve cash flow.

 

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Business Studies Multiple Choice Question – 26 March 2019

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

Wagamama has lively open kitchens where chefs flip food in flaming woks.  This is likely to be a source of?

Select ONE answer:

  1. competitive pricing
  2. promotion
  3. quality assurance
  4. quality control

 

Show the 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

  1. Competitive pricing – incorrect because flipping flaming woks would not have an impact on pricing decisions.
  2. Promotion – correct because flipping flaming woks makes the kitchens livelier, which, in turn, attracts customers.
  3. Quality assurance – incorrect because flipping flaming woks would not be an example of quality being checked at each stage of the production process.
  4. Quality control – incorrect because flipping flaming woks would not be an example of quality being checked at the end of the production process.

 

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Business Studies Multiple Choice Question – 25 March 2019

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

What are shareholders?

Select ONE answer:

  1. A visual means of showing where a product is positioned in the market.
  2. Groups or individuals with an interest in the success of a business.
  3. Solving problems using a creative approach.
  4. The wants and desires of potential buyers of goods and services.

 

Show the 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

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