Category: Economics

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.

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.