Category: Economics

Which policy is most likely to help to correct an adverse balance on the current account of the balance of payments?

Select ONE answer:

1. abolishing tariffs
2. devaluing the currency
3. reducing direct taxes
4. reducing indirect taxes

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 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP.

Which policy is most likely to help this aim?

Select ONE answer:

1. a decrease in import tariffs
2. a decrease in the rate of interest
3. an increase in the sale of state-owned assets
4. an increase in government pension payments

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.

Country M imposes a tariff on imports of steel.

Which price elasticity values will result in the smallest reduction in steel imports into M?

Select ONE answer:

1. price elasticity of supply of domestic steel producers in country M – 0.2 & price elasticity of demand for steel in country M – 0.4
2. price elasticity of supply of domestic steel producers in country M – 1.0 & price elasticity of demand for steel in country M – 0.8
3. price elasticity of supply of domestic steel producers in country M – 1.5 & price elasticity of demand for steel in country M – 1.0
4. price elasticity of supply of domestic steel producers in country M – 2.0 & price elasticity of demand for steel in country M – 1.2

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 action increases and which action decreases the level of protectionism?

Select ONE answer:

1. increases protectionism – imposing an embargo & decreases protectionism – reducing subsidies to domestic producers
2. increases protectionism – imposing exchange controls & decreases protectionism – lowering quota levels
3. increases protectionism – introducing voluntary export agreements & decreases protectionism – increasing subsidies to domestic producers
4. increases protectionism – removing quotas & decreases protectionism – introducing embargos

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.

The table shows the ability of two countries, P and Q, to produce two goods, Y and Z.

  production of Y per person   production of Z per person

•country P   1000   1600

•country Q   1500   2000

Which statement is correct?

Select ONE answer:

1. P has an absolute advantage in Z and Q has a comparative advantage in Y.
2. P has an absolute advantage in Z and Q has an absolute advantage in Y.
3. P has a comparative advantage in Y and Q has an absolute advantage in Z.
4. P has a comparative advantage in Z and Q has an absolute advantage in Y.

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.