Economics Multiple Choice Question – 21 November 2020

Given a rate of interest of 20% per year, what is the opportunity cost to an individual of saving an 
additional £1,000 in year 1?

Select ONE answer:

1. an increase in consumption of £1,200 in year 2
2. an increase in consumption of £200 in year 2
3. consumption of £1,000 in year 1
4. consumption of £1,200 in year 1

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 3

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

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