Category: Economics

A developing country imposes a tariff to protect a new domestic industry.

Which argument would provide an acceptable economic case for this?

Select ONE answer:

1. It is believed that the industry will always need government assistance to compete internationally.
2. It is believed that the industry will compete effectively when it achieves economies of scale.
3. The country wishes to reduce the rate of inflation.
4. The country wishes to lower its terms of trade.

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.

Why might the establishment of a customs union lower economic welfare?

Select ONE answer:

1. The exchange rate is realigned.
2. Labour mobility is increased.
3. Trade is created.
4. Trade is diverted.

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.

Non-rivalry is a characteristic of which type of good?

Select ONE answer:

1. an inferior good
2. a merit good
3. a private good
4. a public 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 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.

Alex’s well-being not only depends on the amounts of goods and services he himself consumes but is also directly affected by the amount of good Y consumed by Lucy.

What does this illustrate?

Select ONE answer:

1. an externality
2. cross-elasticity of demand
3. joint demand
4. substitute goods

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.

A manufacturer’s ability to increase his output in the short run will be greater

Select ONE answer:

1. if labour is immobile.
2. if the product is perishable.
3. if there is spare capacity.
4. if unemployment is low.

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.