Month: August 2021

The UK & the USA trade with each other. The UK imposes a general tariff of 20% on imports from the USA. 

In which circumstances would the imposition of the tariff be unfavourable to the UK?

Select ONE answer:

1. if the UK is seeking to protect its infant industries
2. if the UK lacks the capacity to produce import substitutes
3. if imports from the USA have been dumped in the UK
4. if imports of manufactured goods from the USA are price elastic

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 which situation will a country’s terms of trade worsen?

Select ONE answer:

1. The prices of its imports rise by more than the prices of its exports.
2. The total value of external payments rises by more than the total value of external receipts.
3. The value of its imports rises by more than the value of its exports.
4. The volume of its imports rises by more than the volume of its exports.

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 effect of inflation is described as redistributive?

Select ONE answer:

1. the improvement in the terms of trade
2. the increased reluctance of people to hold money
3. the inconvenience of frequently changing prices
4. the loss of purchasing power of people on fixed incomes

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.

What would cause a shift in the short-run aggregate supply curve but NOT the long-run aggregate supply curve?

Select ONE answer:

1. advances in technology
2. a change in the money wage rate
3. emigration of people of working age
4. gross investment exceeding depreciation

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.

What is UNLIKELY to occur with an increase in the provision of public goods?

Select ONE answer:

1. consumer non-excludability
2. improved use of resources
3. opportunity cost
4. reduction in tax

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.