Month: June 2022

A group of countries introduce a single common currency to replace their national currencies.

What will result from this policy?

Select ONE answer:

1. easier price comparisons between countries
2. higher transaction costs
3. increased interest rate differentials
4. identical prices in all countries

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.

What will be the immediate effect of the removal of tariffs on imported consumer goods.

Select ONE answer:

1. a decrease in the cost of living
2. a decrease in free trade
3. an increase in customs revenues received by the government
4. an increase in the level of domestic 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 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.

In a world economy there are two goods, guns and butter, and two countries, X and Y. Country X can produce both guns and butter with fewer resources per unit than country Y, but country X has a higher opportunity cost in the production of guns than country Y.

Which statement is correct?

Select ONE answer:

1. X has an absolute advantage in butter but NOT in guns.
2. X has an absolute advantage in guns but NOT in butter.
3. X has a comparative advantage in butter.
4. X has a comparative advantage in guns.

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.

Which of the following is the best example of a public good?

Select ONE answer:

1. education
2. medical care
3. postal services
4. radio broadcasts

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 would not be included in a cost-benefit analysis of a proposed new university?

Select ONE answer:

1. the costs of building the new university
2. the extra income earned by the new university’s graduates
3. the future staffing costs of other universities
4. the future staffing costs of the new university five years into the future

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.