Month: June 2021

The government introduces a minimum wage above the equilibrium market wage rate.

How will this affect low-paid workers according to marginal revenue product (MRP) theory?

Select ONE answer:

1. All those initially in employment will receive the new guaranteed minimum wage.
2. Fewer of those not already in employment will enter the labour force.
3. There will be an increase in the number of low-paid workers in employment.
4. Some low-paid workers will lose their job.

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.

Which statement about government intervention is correct?

Select ONE answer:

1. Government failure may result from policies that have unintended side effects.
2. Governments cannot identify the existence of inefficiency.
3. Inefficient government policies mean that the market system will be better at resource 
allocation.
4. Market failure means that government action will necessarily improve the situation.

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.

A monopoly firm makes only normal profit in the long run.

What is MOST LIKELY to explain this?

Select ONE answer:

1. The firm has decreasing long-run average costs.
2. The firm is a public company with numerous shareholders.
3. The firm is owned by a small number of financial institutions.
4. The market in this industry is highly contestable.

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. Correct
3. Not correct
4. Not correct

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

A monopoly firm makes only normal profit in the long run.

What is MOST LIKELY to explain this?

Select ONE answer:

1. The firm has decreasing long-run average costs.
2. The firm is a public company with numerous shareholders.
3. The firm is owned by a small number of financial institutions.
4. The market in this industry is highly contestable.

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 goal of Alex ltd is to make a minimum acceptable level of profit.

What does this describe?

Select ONE answer:

1. profit maximisation
2. profit satisficing
3. revenue maximisation
4. sales maximisation

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.