Economics Multiple Choice Question – 12 May 2021

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

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An economy has a balance of payments surplus, which it wishes to eliminate.

In order to achieve this objective, which combination of polices would be MOST appropriate?

Select ONE answer:

  1. a depreciation of the currency and an increase in government spending
  2. an appreciation of the currency and a cut in interest rates
  3. an increase in the money supply and a pay freeze
  4. increases in both direct and indirect taxation

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

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

Economics Multiple Choice Question – 11 May 2021

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

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What would not be included in Devonia’s balance of payments accounts?

Select ONE answer:

  1. financial investments in Devonia by Olbanian banks
  2. foreign aid received by Devonia
  3. the Devonian terms of trade
  4. the takeover of a Devonian company by a Dragonian company

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

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

Economics Multiple Choice Question – 10 May 2021

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

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

What always happens when there is an increase in the Consumer Price Index?

Select ONE answer:

  1. an increase in consumer expenditure
  2. an increase in the cost of living
  3. a reduction in living standards
  4. a reduction in real disposable income

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

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

Economics Multiple Choice Question – 9 May 2021

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

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

What is MOST likely to lead to a persistent surplus in a country’s current account of its balance of payments?

Select ONE answer:

  1. a low domestic savings rate
  2. an undervalued exchange rate
  3. highly protectionist policies by other countries
  4. low investment income from abroad

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

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

Economics Multiple Choice Question – 8 May 2021

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

sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

How will an increase in government spending on infrastructure affect aggregate demand and aggregate supply?

Select ONE answer:

  1. Changes in quantity demanded can cause changes in any of the other variables.
  2. Consumer preferences are always assumed to remain unchanged.
  3. Only one variable is assumed to change while the others remain the same.
  4. Several variables change simultaneously.

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

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