Day: June 10, 2025

Accounting Multiple Choice Question – 10 June 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A particular brand of cheese is classified as an inferior good.

A business consultant called Keith has made the two statements about that brand of cheese.

Statement 1 Demand for the cheese will rise as incomes rise.

Statement 2 Demand for the cheese only exists because of the effects of advertising.

Are the statements true or false?

Select ONE answer:

  1. Statement 1 – True and Statement 2 – False
  2. Statement 1 – False and Statement 2 – True
  3. Statement 1 – True and Statement 2 – True
  4. Statement 1 – False and Statement 2 – False

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Both statements are false. Demand for an inferior good will fall with rises in income as consumers shift to better quality goods that they can now afford with their higher incomes. Demand for the inferior product could exist because of its price and the level of incomes, not just because of advertising.

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