Month: April 2023

A firm is operating in a perfectly competitive market.

What would ensure that it is both productively and allocatively efficient?

Select ONE answer:

1. It is in long-run equilibrium.
2. It is maximising total revenue.
3. It is producing where marginal revenue is equal to marginal cost.
4. Long-run average costs are falling and sales are rising.

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 policy would reduce a balance of payments deficit on the current account in the short run?

Select ONE answer:

1. a reduction in government subsidies to exporters
2. a reduction in the rate of interest
3. a rise in direct taxation
4. incentives to attract foreign capita

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.

A depreciation of the exchange rate of the pound sterling against the US dollar from £1 : $1.50 to £1 : $1.00 must mean that…..?

Select ONE answer:

1. the pound will be undervalued.
2. US imports from the UK will become more expensive.
3. UK imports from the US will become cheaper.
4. dollars will become more expensive in terms of pounds.

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.

Which is most likely to cause country X’s exchange rate to depreciate?

Select ONE answer:

1. an increase in country X’s demand for imports
2. an increase in country X’s interest rate
3. an increase in foreign demand for country X’s exports
4. an increase in tourist visits to country X

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 factor determines the purchasing power parity of a currency?

Select ONE answer:

1. relative costs of living
2. relative rates of interest
3. the volume of trade creation
4. the visible balance of payments

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.