Month: April 2023

In which situation will it be necessary to use an alternative to the price mechanism to allocate a good between consumers?

Select ONE answer:

1. The quantity of the good available is fixed.
2. Producers of the good receive a subsidy.
3. The government imposes a specific tax on the good.
4. The government sets a maximum price below the equilibrium price.

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.

Why do governments often subsidise the cost of entrance to museums?

Select ONE answer:

1. Museums are a pure public good.
2. Social benefits are less than social costs.
3. Social benefits exceed private benefits.
4. Social costs exceed private costs.

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.

Assume that rice is a substitute for potatoes.

If there is a decrease in the supply of potatoes, what is likely to happen to the market for rice in the short run?

Select ONE answer:

1. Demand will decrease and the price will decrease.
2. Demand will increase and the price will increase.
3. Supply will decrease and the price will increase.
4. Supply will increase and the price will decrease.

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.

What would cause the demand for holiday accommodation in Mauritius to shift to the left?

Select ONE answer:

1. a fall in the exchange value of the Mauritian rupee
2. poor holiday weather in Mauritius
3. relaxation in planning controls on hotel construction in Mauritius
4. removal of sales tax on hotel accommodation in Mauritius

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.

What ensures that demand for a product is effective?

Select ONE answer:

1. The consumer must be in the private sector of the economy.
2. The consumer must have sufficient income to buy the product.
3. The consumer must receive consumer surplus.
4. The consumer must want to buy the product.

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.