Month: April 2023

What is the most likely consequence of an increase in a country’s balance of payments deficit?

Select ONE answer:

1. an increase in the foreign value of the currency of the country
2. an increase in the level of income within the country
3. a reduction in the quantity of money within the country
4. a reduction in unemployment within the country

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 figures show the consumer price index (CPI) of a country. (1971 = 100)

• 1998 – 200
• 1999 – 204
• 2000 – 206
• 2001 – 209

What can be deduced from the data?

Select ONE answer:

1. There was hyperinflation between 1971 and 1998.
2. The rate of inflation rose in 2000.
3. The rate of inflation in 1999 was 4%.
4. The country experienced inflation in the three years down to the end of 2001.

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 which situation must the terms of trade be moving in a country’s favour?

Select ONE answer:

1. Its import prices are rising at a slower rate than its export prices.
2. There is a fall in both its import and its export prices.
3. There is an increase in its official reserves.
4. The volume of its exports is increasing more than the volume of its imports.

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 is present in a customs union but not in a free trade area?

Select ONE answer:

1. a common monetary system
2. a common external tariff with the rest of the world
3. a common system of taxation
4. the free movement of all goods, services and factors 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 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.

An argument against trade protection is that it will increase….?

Select ONE answer:

1. competition for domestic industries.
2. domestic price levels.
3. the current account deficit.
4. opportunities for domestic infant industries.

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.