Month: April 2022

Country M imposes a tariff on imports of steel.

Which price elasticity values will result in the smallest reduction in steel imports into M?

Select ONE answer:

1. price elasticity of supply of domestic steel producers in country M – 0.2 & price elasticity of demand for steel in country M – 0.4
2. price elasticity of supply of domestic steel producers in country M – 1.0 & price elasticity of demand for steel in country M – 0.8
3. price elasticity of supply of domestic steel producers in country M – 1.5 & price elasticity of demand for steel in country M – 1.0
4. price elasticity of supply of domestic steel producers in country M – 2.0 & price elasticity of demand for steel in country M – 1.2

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 action increases and which action decreases the level of protectionism?

Select ONE answer:

1. increases protectionism – imposing an embargo & decreases protectionism – reducing subsidies to domestic producers
2. increases protectionism – imposing exchange controls & decreases protectionism – lowering quota levels
3. increases protectionism – introducing voluntary export agreements & decreases protectionism – increasing subsidies to domestic producers
4. increases protectionism – removing quotas & decreases protectionism – introducing embargos

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.

The table shows the ability of two countries, P and Q, to produce two goods, Y and Z.

  production of Y per person   production of Z per person

•country P   1000   1600

•country Q   1500   2000

Which statement is correct?

Select ONE answer:

1. P has an absolute advantage in Z and Q has a comparative advantage in Y.
2. P has an absolute advantage in Z and Q has an absolute advantage in Y.
3. P has a comparative advantage in Y and Q has an absolute advantage in Z.
4. P has a comparative advantage in Z and Q has an absolute advantage in 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.

What is likely to explain an increase in the deficit on a country’s current account of the balance of payments?

Select ONE answer:

1. an increase in government foreign aid to countries abroad
2. an increase in government tax rates
3. an increase in other countries’ exchange rates
4. an increase in the proportion of income saved by the country’s residents

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.

The table shows selected items of the balance of payments of a country in 2019.

• net portfolio investment – £bns +40
• trade in goods – £bns –100
• trade in services – £bns +50
• interest, profit and dividends (primary income) – £bns +10
• current transfers (secondary income) – £bns +10
• transactions in financial assets – £bns –10

What was the country’s current account balance in 2019?

Select ONE answer:

1. -£40 billion
2. -£30 billion
3. -£20 billion
4. -£10 billion

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.