Month: April 2022

Which argument is used to justify a policy of nationalisation?

Select ONE answer:

1. A firm exposed to market forces is more likely to be efficient.
2. It avoids the wasteful duplication of resources.
3. The stock market can exert effective discipline on the industry.
4. There are benefits from wider share ownership

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.

When is a transfer payment most likely to be an individual’s main source of income?

Select ONE answer:

1. when employed
2. when investing
3. when saving
4. when unemployed

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.

A government decreases the tax rate on goods and services and increases the tax rate on incomes.

What is the likely outcome on the distribution of income and the incentive to work?

Select ONE answer:

1. distribution of income – less equal & incentive to work – decreased
2. distribution of income – less equal & incentive to work – increased
3. distribution of income – more equal & incentive to work – decreased
4. distribution of income – more equal & incentive to work – increased

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.

The demand for a good falls at the same time as its costs of production decrease.

What will be the combined effect of these changes on the price and on the quantity supplied of the good?

Select ONE answer:

1. price quantity – decrease & supplied – decrease
2. price quantity – decrease & supplied – uncertain
3. price quantity – uncertain & supplied – decrease
4. price quantity – uncertain & supplied – uncertain

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 government fixes a minimum price for a product above the current equilibrium price.

Which value for the product’s price elasticity of supply will result in the smallest excess supply in its market?

Select ONE answer:

1. between zero and one
2. greater than one
3. one
4. zero

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.