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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