Month: October 2020

In the construction of a consumer prices index (CPI), a total weight of 1000 is used.

If a weight of 300 is given to food and a weight of 150 is given to transport, then…

Select ONE answer:

1. consumers are spending half as much on transport as they do on food.
2. consumers must be spending more on necessities than on luxury goods.
3. food prices must be rising twice as fast as transport prices.
4. the weights cannot be changed until the index reaches 1000.

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 1

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

The managers of a firm have to discuss the following topics.

Which topic is least likely to be directly affected by the government’s influence on the firm?

Select ONE answer:

1. health and safety laws
2. replacing one of its managers
3. the interest it pays on borrowed money
4. the minimum wage it must pay its workers

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 2

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which combination of government policies is MOST likely to increase the rate of growth of domestic production in an economy?

Select ONE answer:

1. an increase in expenditure on infrastructure and an increase in income tax
2. an increase in interest rates and an increase in quotas on imported goods
3. an increase in sales tax and an increase in education expenditure
4. an increase in subsidies to domestic industry and an increase in tariffs

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

The table shows a government’s receipts from taxation.

What is the total amount of revenue raised by direct taxes?

Select ONE answer:

1. £280M
2. £700M
3. £730M
4. £950M

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 2

1. Not correct
2. Correct (100 + 600)
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is the MOST likely result of an increase in interest rates?

Select ONE answer:

1. a fall in consumer spending
2. a fall in productivity
3. a rise in borrowing
4. a rise in investment

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 1

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

This work is licensed under a Creative Commons Attribution 4.0 International License.