Category: Economics

Which function do central banks and commercial banks have in common?

Select ONE answer:

1. acting as a banker’s bank
2. controlling monetary policy
3. dealing with foreign exchange
4. supervising the banking system

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.

Governments sometimes intervene in the economy when the market fails.

What is the MOST likely reason why government intervention may make the situation worse?

Select ONE answer:

1. Government decisions can take a long time to have an effect.
2. Governments consider the views of both consumers and producers.
3. Governments have more resources to calculate costs and benefits than private firms.
4. Governments may take decisions to reduce negative externalities.

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.

How might the concept of price elasticity of demand (PED) be useful for a government?

Select ONE answer:

1. to determine the effect on employment of a change in income tax
2. to determine the effect on government revenue of a rise in the rate of interest
3. to determine the effect of providing a public good
4. to determine the result of imposing a tariff on imports

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.

A market consists of 10 individuals with different demand curves in a given period.

What is a calculation that could be used as part of the process to determine the market equilibrium in that period?

Select ONE answer:

1. at each price add the quantities demanded by each individual
2. at each quantity average the price that each individual is prepared to pay
3. combine the price elasticity of demand (PED) and the price elasticity of supply (PES) at each price
4. determine the PED and multiply it by the quantity demanded

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.

Reena makes a living by selling paintings of the town in which she lives. She sells them in an open-air market once a week.

In order to be able to sell more pictures in a week she decides to buy a studio, pay someone to help in the studio and try to increase demand by advertising in the local paper.

Which factors of production were changed?

Select ONE answer:

1. economic growth, resource allocation, free market equilibrium
2. government intervention, monetary policy, opportunity cost
3. public good, market prices, fiscal policy
4. supply-side policy, negative externalities, factors of production

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.