Category: Economics

A monopoly firm makes only normal profit in the long run.

What is MOST LIKELY to explain this?

Select ONE answer:

1. The firm has decreasing long-run average costs.
2. The firm is a public company with numerous shareholders.
3. The firm is owned by a small number of financial institutions.
4. The market in this industry is highly contestable.

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.

The goal of Alex ltd is to make a minimum acceptable level of profit.

What does this describe?

Select ONE answer:

1. profit maximisation
2. profit satisficing
3. revenue maximisation
4. sales maximisation

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.

A project has a social cost of £100 million, a private cost of £40 million and an external benefit of £20 million. Its net social value is zero.

Select ONE answer:

1. External cost is greater than external benefit.
2. Private cost is greater than external cost.
3. Private cost is greater than private benefit.
4. Social cost is greater than social benefit.

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 change in economic circumstances is MOST likely to lead to a reduction in the rate of domestic inflation in an economy?

Select ONE answer:

1. a depreciation in the currency
2. a reduction in the productivity of labour
3. a world-wide recession
4. an increase in direct taxes to finance increased welfare payments

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.

An economy has a balance of payments surplus, which it wishes to eliminate.

In order to achieve this objective, which combination of polices would be MOST appropriate?

Select ONE answer:

1. a depreciation of the currency and an increase in government spending
2. an appreciation of the currency and a cut in interest rates
3. an increase in the money supply and a pay freeze
4. increases in both direct and indirect taxation

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.