Month: May 2022

What explains why the social cost of developing tourism on a remote island is greater than the private cost?

Select ONE answer:

1. the costs of building extra hotels on the island
2. the extra costs of providing the tourists with food
3. the travel costs paid by tourists who visit the island
4. the harm to the environment caused by the tourists

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.

In calculating the short-run supply schedule for a firm, what is assumed to remain unchanged?

Select ONE answer:

1. the number of consumers
2. the price of the good
3. the quantities of all factors
4. the state of technology

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 table shows the price elasticity of demand for four goods and services:

• motor cycles 1.6
• telephone calls 1.0
• football tickets 0.3
• light bulbs 0.0

If the price of each item increased by 1%, for which of these items would the total expenditure increase?

Select ONE answer:

1. football tickets only
2. motor cycles only
3. football tickets and light bulbs
4. motor cycles and telephone calls

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 is the outcome for consumers and workers as a result of increased division of labour?

Select ONE answer:

1. Consumers – less choice of goods / Workers – wider range of skills
2. Consumers – fewer mass-produced goods / Workers – wider variety of tasks
3. Consumers – lower prices of goods / Workers – increased productivity
4. Consumers – lower quality of goods / Workers – increased independence

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 is meant by the ceteris paribus assumption?

Select ONE answer:

1. an assumption that is not supported by the facts
2. an assumption that consumers act rationally
3. an assumption that two factors are in equilibrium
4. an assumption that other factors are held constant

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.