Month: September 2021

The UK has low unemployment and is managing the float of Sterling against What follows if the income elasticity of demand for a good has a value of – 0.2?

Select ONE answer:

1. When income rises less of the good is bought.
2. When income rises more of the good is bought.
3. When price falls more of the good is bought.
4. When price rises less of the good is bought.

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.

Scrumpers in Staffordshire want to pick wild sloe berries from sloe bushes that live in the hedgerows in the countrysides along with blackberry, hawthorn and rose-hip bushes, in order to make delicious sloe gin to keep them warm over winter.

They find the sloe bushes by following grey squirrels around the country lanes who want the rose-hips to snack on over winter when they hibernate that is found side-by-side in the Staffordshire hedgerows.

What does this suggest?

Select ONE answer:

1. Scrumpers and grey squirrels are rival consumers.
2. Sloe and rose-hip berries are free goods.
3. Sloe and rose-hip berries are in joint supply.
4. Slow berries is the opportunity cost of rose-hip berries.

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 justifies government intervention in the provision of a merit good such as education?

Select ONE answer:

1. People who pay for education value it more than those who cannot pay.
2. Private schools have more merit than state schools.
3. Social costs of providing education outweigh social benefits of education.
4. Some consumers do not fully recognise the value of education.

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 has low unemployment and is managing the float of Sterling against other major currencies, but it still has a persistent current account deficit on its balance of payments.

Which policy to reduce this deficit is most likely to keep unemployment low, but cause inflation in the UK?

Select ONE answer:

1. depreciating its currency
2. higher direct taxation
3. higher import tariffs
4. higher interest rates

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 government wants to move its economy away from central planning towards a market economy.

Which policy would be consistent with this aim?

Select ONE answer:

1. introduce tariffs on imported goods
2. privatise the ownership of electricity generation
3. provide free education for primary school pupils
4. reduce prices of foods such as wheat and rice

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.