Month: September 2021

A country decides to remove all its tariffs and engage in free international trade.

What will be the final decision the country has to make before free trade takes place?

Select ONE answer:

1. deciding which resources to allocate to the production of goods and services for international trade
2. deciding which goods and services should be provided for international trade
3. identifying the opportunity costs of production of goods and services which might be used for international trade
4. setting an appropriate exchange rate for the international trade of goods and services

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 is NOT an item in a country’s current account of its balance of payments?

Select ONE answer:

1. exports of primary commodities
2. money received from banking services
3. overseas investment
4. profits sent back by companies overseas

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.

A country has a fixed exchange rate.

Which combination of problems would be most likely to cause the country’s government to reduce taxation and lower interest rates?

Select ONE answer:

1. demand inflation and a balance of payments current account deficit
2. demand inflation and a low level of investments
3. high unemployment and a balance of payments current account deficit
4. high unemployment and a low level of investment

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 UK government is concerned about the market influence of a large elWhat describes a regressive tax?

Select ONE answer:

1. All taxpayers pay the same proportion of income in taxes.
2. High-income earners pay a lower proportion of income in taxes than low-income earners.
3. High-income earners pay less in taxes than low-income earners.
4. High-income earners pay more in taxes than low-income earners.

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.

The UK government is concerned about the market influence of a large electricity producer and was keen to take control of the company to solve the problem.

What might be the possible result of this?

Select ONE answer:

1. an increase in the role of the market of the UK government
2. an increase in public ownership
3. an increase in the role of the UK consumer in the market dynamics
4. an increase in the amount of competition in the UK energy market

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.