Economics Multiple Choice Question – 30 July 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 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

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