Category: Economics

What will cause the demand curve for labour to shift to the right?

Select ONE answer:

1. a fall in the money wage rate
2. a rise in real wages
3. an increase in immigration
4. an increase in labour productivity

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 statement explains why in the short run labour is subject to the law of diminishing returns?

Select ONE answer:

1. As additional workers are hired, output decreases.
2. As employment increases, the capital-labour ratio falls.
3. As employment increases, wage rates will have to be increased.
4. As output expands, sooner or later diseconomies of scale will set in.

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 explains the slope of an individual’s demand curve for a normal good?

Select ONE answer:

1. market imperfections
2. the law of variable proportions
3. diminishing returns
4. diminishing marginal utility

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.

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.