Category: Economics

Which type of unemployment arose from the worldwide decline in the demand for electronic goods beginning in the summer of 2001?

Select ONE answer:

1. seasonal
2. voluntary
3. frictional
4. structural

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.

What is the major cause of high rates of inflation in many developing economies?

Select ONE answer:

1. balance of payments deficits
2. budget deficits
3. low levels of unemployment
4. overvalued exchange rates

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.

Which method of financing a government deficit will leave the money supply unchanged?

Select ONE answer:

1. the sale of government securities to the central bank
2. the sale of government securities to the commercial banks
3. the sale of government securities to domestic residents
4. the sale of government securities to overseas residents

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.

Out of any addition to national income, 20 % is spent on imports, 25 % is paid in taxes, 5 % is saved and the rest is spent on domestically produced goods.

What is the value of the multiplier?

Select ONE answer:

1. 20
2. 5
3. 2
4. 0.5

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.

Over a given period the nominal value of a country’s national income increased by 20% and its value of output by 25%.

What could explain this?

Select ONE answer:

1. The country’s money supply fell by 5%.
2. There was an increase in the income velocity of circulation.
3. There was an increase in the balance of trade deficit.
4. The country’s general price level fell by 5%.

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.