Category: Economics

A regressive tax is defined as one which requires…?

Select ONE answer:

1. all taxpayers to pay the same absolute amount of their income in taxation.
2. high income earners to pay less in taxes than low income earners.
3. high income earners to pay more in taxes than low income earners.
4. high income earners to pay a lower proportion of their income in taxes than low income earners.

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.

By reallocating resources an economy produces more of one good but no less of other goods.

What change has necessarily occurred?

Select ONE answer:

1. improved technology
2. improved efficiency
3. increased equity
4. increased employment

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.

When will a firm in a perfectly competitive industry cease to produce in the short run?

Select ONE answer:

1. if it earns less than normal profits
2. if total revenue is less than the total cost of production
3. if marginal revenue is less than the average total cost of production
4. if total revenue is less than the total variable cost 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 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.

The proportion of total employment in an economy accounted for by small firms increases.

Which explanation for this is LEAST likely to be valid?

Select ONE answer:

1. a trend towards the use of sub-contractors to produce specialised components
2. growing technical diseconomies of scale in manufacturing
3. growth of the manufacturing sector and a decline in services
4. the opening up of market niches as real incomes rise

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.

Which statement about the long-run average cost curve of a firm is correct?

Select ONE answer:

1. It falls continuously because of economies of scale.
2. It passes through the minimum points of the firm’s short-run average cost curves.
3. It assumes that factor input proportions are held constant as output increases.
4. It indicates the minimum average cost at which each level of output can be produced.

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.