Category: Economics

Which combination of government policies is MOST likely to increase the rate of growth of domestic production in an economy?

Select ONE answer:

1. an increase in expenditure on infrastructure and an increase in income tax
2. an increase in interest rates and an increase in quotas on imported goods
3. an increase in sales tax and an increase in education expenditure
4. an increase in subsidies to domestic industry and an increase in tariffs

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

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The table shows a government’s receipts from taxation.

What is the total amount of revenue raised by direct taxes?

Select ONE answer:

1. £280M
2. £700M
3. £730M
4. £950M

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 (100 + 600)
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is the MOST likely result of an increase in interest rates?

Select ONE answer:

1. a fall in consumer spending
2. a fall in productivity
3. a rise in borrowing
4. a rise in investment

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.

Why might a government encourage a monopoly?

Select ONE answer:

1. It can compete against foreign firms.
2. It can have high average costs.
3. It can make excessive profits.
4. It can prevent innovation.

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 large pizza chain in the US decided to sell sandwiches as well to try to increase its revenue.
Which term describes this change?

Select ONE answer:

1. diversification
2. externalities
3. horizontal merger
4. vertical merger

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.