Category: Economics

What is NOT an example of the role of the factor “enterprise” in a modern economy?

Select ONE answer:

1. deciding on new export markets for the company’s goods and services
2. making payments to suppliers for raw materials and capital goods
3. reducing costs through the introduction of a new shift system for employees
4. transforming the production process with the introduction of robots

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 demand for a product is inversely related to its price, ceteris paribus.

What does ceteris paribus mean in this context?

Select ONE answer:

1. Factors affecting demand other than price are held constant.
2. Factors affecting price other than demand are held constant.
3. Price changes result from changes in demand.
4. Price falls result in increased quantity demanded.

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 is the best example of an expansionary supply-side policy?

Select ONE answer:

1. the Argentinian central bank’s decision to cut the interest rate in 2018
2. the US president’s plan to cut income tax rates in 2017
3. the UK government’s plan to build 500 new schools by 2020
4. the Chinese government’s decision to devalue their currency by almost 7% in 2016

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.

Monetary policy does not usually work immediately.

Which time lag is likely to be the LEAST concern to a government whose priority is a rapid domestic impact?

Select ONE answer:

1. the time it takes for policymakers to recognise the cause of a problem
2. the time it takes for the economy to respond to the introduction of the policy
3. the time it takes for the foreign exchange rate to respond to the effect of the policy
4. the time it takes to put the chosen policy measure into place

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.

A country’s balance of payments current account is in deficit.

How can this be restored to equilibrium, assuming the Marshall-Lerner condition holds?

Select ONE answer:

1. increase the exchange rate
2. reduce income tax
3. reduce primary income
4. subsidise domestic producers

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.