Economics Multiple Choice Question – 22 September 2020

How might the concept of price elasticity of demand (PED) be useful for a government?

Select ONE answer:

1. to determine the effect on employment of a change in income tax
2. to determine the effect on government revenue of a rise in the rate of interest
3. to determine the effect of providing a public good
4. to determine the result of imposing a tariff on imports

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

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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