Category: Economics

The demand for a good falls at the same time as its costs of production decrease.

What will be the combined effect of these changes on the price and on the quantity supplied of the good?

Select ONE answer:

1. price quantity – decrease & supplied – decrease
2. price quantity – decrease & supplied – uncertain
3. price quantity – uncertain & supplied – decrease
4. price quantity – uncertain & supplied – uncertain

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.

The government fixes a minimum price for a product above the current equilibrium price.

Which value for the product’s price elasticity of supply will result in the smallest excess supply in its market?

Select ONE answer:

1. between zero and one
2. greater than one
3. one
4. zero

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 it necessary to know in order to calculate the price elasticity of supply of a product when its price changes?

Select ONE answer:

1. the amount of the price change; the quantity demanded at the original price; the quantity supplied at the new price
2. the equilibrium market price; the quantity demanded at equilibrium; the quantity supplied at equilibrium
3. the original and new market price; the quantity supplied at the original price; the quantity supplied at the new price
4. the quantity demanded at the new price; the price change; the quantity supplied at the new Price

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 elasticity values indicate that cars are normal goods and that petrol is a complement to car use?

LHS – income elasticity of demand (YED) for cars & RHS – cross elasticity of demand (XED) for petrol relative to changes in car prices

Select ONE answer:

1. YED is negative & XED is negative
2. YED is negative & XED is positive
3. YED is positive & XED is negative
4. YED is positive & XED is positive

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.

Lucy sells cakes for £100. Alex offers online economics tutoring for £200 per hour.

One hour of Alex’s top-class economics tutoring is worth two of Lucy’s excellent cakes.

Which function of money is being illustrated?

Select ONE answer:

1. medium of exchange
2. standard of deferred payment
3. store of value
4. unit of account

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.