Month: July 2021

Which statement about nationalised and privatised industries is correct?

Select ONE answer:

1. A privatised industry is usually less competitive than a nationalised industry.
2. A profitable private company cannot be nationalised.
3. Privatisation is a form of monetary policy.
4. Privatisation is a way of raising money for the government.

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.

An economy has a 30% housing shortage. The county council builds 30% more houses for low-income families and fixes the rent below the equilibrium for the market.

Which effect will this direct provision by the county council have on the market?

Select ONE answer:

1. A greater imbalance in the market in private housing will develop.
2. Housing waiting lists for poorer families will be cleared.
3. The supply of government housing will fall short of demand.
4. The supply of private housing for rent will fall by 30%.

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.

To improve its financial position a government decided to reduce expenditure on investment in the public sector.  Despite this, there was NOT a fall in economic growth

What was the MOST likely effect of the government’s action?

Select ONE answer:

1. An original budget deficit was reduced.
2. An original budget surplus was reduced.
3. Consumer expenditure decreased.
4. Public sector productivity decreased.

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.

Consumers receive an increase in their incomes.

Which circumstances will cause the quantity of the product sold to increase the most?

Select ONE answer:

1. nature of the product – inferior good  /  price elasticity of supply of the product – price elastic
2. nature of the product – inferior good  /  price elasticity of supply of the product – price inelastic
3. nature of the product – normal good  /  price elasticity of supply of the product – price elastic
4. nature of the product – normal good  /  price elasticity of supply of the product – price inelastic

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.

What is cross elasticity of demand?

Select ONE answer:

1. the responsiveness of price of good X due to a change in demand of good Y
2. the responsiveness of quantity demanded of a good due to a change in its price
3. the responsiveness of quantity demanded of good X due to a change in quantity of good Y
4. the responsiveness of quantity demanded of good X due to a change in the price of good Y

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.