Month: June 2021

The central bank of a country creates cash to purchase government bonds from the commercial banks.

What is this called?

Select ONE answer:

1. liquidity preference
2. quantitative easing
3. supply-side policy
4. the transmissions mechanism

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.

In an open economy with a government sector, the marginal propensity to import is 0.3, the 
marginal propensity to tax is 0.3 and the marginal propensity to save is 0.2. What is the value of the multiplier?

Select ONE answer:

1. 1.25
2. 2
3. 2.5
4. 5

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.

What does the Kuznets curve represent?

Select ONE answer:

1. changes in income inequality over time
2. changes in the Human Development Index over time
3. changes in the Multidimensional Poverty Index over time
4. the inverse of a Lorenz curve

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.

Which adjustments to real GNP per head might make it a more reliable indicator when comparing standards of living in different countries?

Select ONE answer:

1. adjustments to allow for differences in the level of government spending in different countries
2. adjustments to allow for differences in the rates of inflation in different countries
3. adjustments to allow for differences in the size of the hidden economy in different countries
4. adjustments to allow for differences in the value of exports from different countries

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

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

Which source of income is NOT included in measuring real GDP?

Select ONE answer:

1. pension paid to retired people
2. profits made by firms
3. rent paid to landlords
4. wages paid to nurses

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.