Month: June 2022

Out of any addition to national income, 20 % is spent on imports, 25 % is paid in taxes, 5 % is saved and the rest is spent on domestically produced goods.

What is the value of the multiplier?

Select ONE answer:

1. 20
2. 5
3. 2
4. 0.5

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.

Over a given period the nominal value of a country’s national income increased by 20% and its value of output by 25%.

What could explain this?

Select ONE answer:

1. The country’s money supply fell by 5%.
2. There was an increase in the income velocity of circulation.
3. There was an increase in the balance of trade deficit.
4. The country’s general price level fell by 5%.

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 regressive tax is defined as one which requires…?

Select ONE answer:

1. all taxpayers to pay the same absolute amount of their income in taxation.
2. high income earners to pay less in taxes than low income earners.
3. high income earners to pay more in taxes than low income earners.
4. high income earners to pay a lower proportion of their income 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 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.

By reallocating resources an economy produces more of one good but no less of other goods.

What change has necessarily occurred?

Select ONE answer:

1. improved technology
2. improved efficiency
3. increased equity
4. increased employment

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 will a firm in a perfectly competitive industry cease to produce in the short run?

Select ONE answer:

1. if it earns less than normal profits
2. if total revenue is less than the total cost of production
3. if marginal revenue is less than the average total cost of production
4. if total revenue is less than the total variable cost of production

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.