Category: Economics

A government in a developed economy wishes to reduce cyclical unemployment.

Which policy is likely to be MOST effective?

Select ONE answer:

1. decrease government expenditure and increase income tax
2. decrease its budget deficit
3. increase government expenditure and decrease income tax
4. increase its budget surplus

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 policy is likely to increase unemployment?

Select ONE answer:

1. an increase in retraining facilities
2. a significant increase in indirect taxes
3. the imposition of selective import controls
4. an increase in the public sector deficit

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 central bank of a country creates cash to purchase government bonds from the commercial banks.

What is this called?

Select ONE answer:

1. liquidity preference
2. quantitative easing
3. supply-side policy
4. the transmissions mechanism

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 an open economy with a government sector, the marginal propensity to import is 0.3, the 
marginal propensity to tax is 0.3 and the marginal propensity to save is 0.2. What is the value of the multiplier?

Select ONE answer:

1. 1.25
2. 2
3. 2.5
4. 5

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 does the Kuznets curve represent?

Select ONE answer:

1. changes in income inequality over time
2. changes in the Human Development Index over time
3. changes in the Multidimensional Poverty Index over time
4. the inverse of a Lorenz curve

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.