Category: Economics

What is most likely in the UK to be increased by a policy of increased direct taxes and lower government spending?

Select ONE answer:

1. The the balance of payments deficit
2. the budget deficit
3. the rate of inflation
4. the level of unemployment

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 does the Marshall-Lerner condition state must be present for a depreciation of a currency to cause an improvement in the current account balance?

Select ONE answer:

1. The price elasticity of demand for exports and the price elasticity of demand for imports are both greater than one.
2. The price elasticity of demand for exports and the price elasticity of demand for imports are both less than one.
3. The sum of the price elasticity of demand for exports and the price elasticity of demand for imports is greater than one.
4. The sum of the price elasticity of demand for exports and the price elasticity of demand for imports is less than one.

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.

The UK & the USA trade with each other. The UK imposes a general tariff of 20% on imports from the USA. 

In which circumstances would the imposition of the tariff be unfavourable to the UK?

Select ONE answer:

1. if the UK is seeking to protect its infant industries
2. if the UK lacks the capacity to produce import substitutes
3. if imports from the USA have been dumped in the UK
4. if imports of manufactured goods from the USA are price elastic

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 which situation will a country’s terms of trade worsen?

Select ONE answer:

1. The prices of its imports rise by more than the prices of its exports.
2. The total value of external payments rises by more than the total value of external receipts.
3. The value of its imports rises by more than the value of its exports.
4. The volume of its imports rises by more than the volume of its exports.

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 effect of inflation is described as redistributive?

Select ONE answer:

1. the improvement in the terms of trade
2. the increased reluctance of people to hold money
3. the inconvenience of frequently changing prices
4. the loss of purchasing power of people on fixed incomes

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.