Category: Economics

Which of the following is a transfer payment?

Select ONE answer:

1. the advertising expenditure of a firm
2. the allowance given by a parent to their child while at school
3. the rent paid to a land owner by a tenant farmer
4. the wage paid to a worker in the government service

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 combination of events is most likely to leave the demand curve for a normal good in the same position?

Select ONE answer:

1. a decrease in consumer incomes and an increase in the price of a substitute good
2. a decrease in consumer incomes and an increase in the price of the good
3. an increase in consumer incomes and an increase in the price of a substitute good
4. an increase in consumer incomes and an increase in the price of the good

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 cross elasticity of demand between two products, X and Y, is negative.

What would be the immediate effect of a rise in the price of product Y?

Select ONE answer:

1. Quantity demanded of product X will fall.
2. Supply of product X will rise.
3. The cross elasticity of demand will rise.
4. The price of product X will rise.

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 MOST likely to cause an increase in the consumer surplus in the market for a normal good?

Select ONE answer:

1. an increase in consumer incomes
2. an increase in the number of substitute goods
3. an increase in the price of a complementary good
4. an increase in the price of the good

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 UK has low unemployment and is managing the float of Sterling against What follows if the income elasticity of demand for a good has a value of – 0.2?

Select ONE answer:

1. When income rises less of the good is bought.
2. When income rises more of the good is bought.
3. When price falls more of the good is bought.
4. When price rises less of the good is bought.

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.