Category: Economics

What is likely to explain an increase in the deficit on a country’s current account of the balance of payments?

Select ONE answer:

1. an increase in government foreign aid to countries abroad
2. an increase in government tax rates
3. an increase in other countries’ exchange rates
4. an increase in the proportion of income saved by the country’s 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 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 selected items of the balance of payments of a country in 2019.

• net portfolio investment – £bns +40
• trade in goods – £bns –100
• trade in services – £bns +50
• interest, profit and dividends (primary income) – £bns +10
• current transfers (secondary income) – £bns +10
• transactions in financial assets – £bns –10

What was the country’s current account balance in 2019?

Select ONE answer:

1. -£40 billion
2. -£30 billion
3. -£20 billion
4. -£10 billion

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 argument is used to justify a policy of nationalisation?

Select ONE answer:

1. A firm exposed to market forces is more likely to be efficient.
2. It avoids the wasteful duplication of resources.
3. The stock market can exert effective discipline on the industry.
4. There are benefits from wider share ownership

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 is a transfer payment most likely to be an individual’s main source of income?

Select ONE answer:

1. when employed
2. when investing
3. when saving
4. when unemployed

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.

A government decreases the tax rate on goods and services and increases the tax rate on incomes.

What is the likely outcome on the distribution of income and the incentive to work?

Select ONE answer:

1. distribution of income – less equal & incentive to work – decreased
2. distribution of income – less equal & incentive to work – increased
3. distribution of income – more equal & incentive to work – decreased
4. distribution of income – more equal & incentive to work – increased

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.