Category: Economics

What will cause an immediate rise in the size of a country’s labour force?

Select ONE answer:

1. an increase in the birth rate
2. an increase in the age of retirement
3. an increase in the school leaving age
4. an increase in the number of redundancies

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.

Country A has a comparative advantage in producing Barley and country B in producing Aeroplanes.

However, the countries choose not to specialise and trade.

What is a valid reason for this behaviour?

Select ONE answer:

1. The exchange rate lies within the countries’ opportunity cost ratios.
2. There is immobility of factors of production between the countries.
3. Trade is based on absolute rather than comparative advantage.
4. Transport costs are high relative to the opportunity cost differences between the countries.

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.

When is an economy likely to experience a deterioration in its terms of trade?

Select ONE answer:

1. when demand for its exports increases
2. when the trade weighted value of its currency depreciates
3. when the interest rate is increased
4. when there is a fall in the average price 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 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.

A group of countries introduce a single common currency to replace their national currencies.

What will result from this policy?

Select ONE answer:

1. easier price comparisons between countries
2. higher transaction costs
3. increased interest rate differentials
4. identical prices in all countries

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 will be the immediate effect of the removal of tariffs on imported consumer goods.

Select ONE answer:

1. a decrease in the cost of living
2. a decrease in free trade
3. an increase in customs revenues received by the government
4. an increase in the level of domestic 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 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.