Category: Economics

Which of the following statements is a normative statement?

Select ONE answer:

1. An increase in the indirect tax on cigarettes will increase the price of cigarettes
2. People aged under 21 years old are more likely to smoke than people over 30 years old
3. People should not be allowed to smoke in private cars
4. Smoking can damage your health

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

1. Positive statement – testable hypothesis.
2. Positive statement – testable hypothesis.
3. Correct: value judgement.
4. Positive statement – testable hypothesis.

 

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

It has been estimated that the price elasticity of supply (PES) of flood defences is 0.25 in the short run and 1.25 in the long run. Which of the following combinations of statements is correct?

Select ONE answer:

1. Short run PES of flood defences – Elastic / Long run PES of flood defences – Elastic
2. Short run PES of flood defences – Elastic / Long run PES of flood defences – Inelastic
3. Short run PES of flood defences – Inelastic / Long run PES of flood defences – Elastic
4. Short run PES of flood defences – Inelastic / Long run PES of flood defences – Inelastic

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

1. In the short run price elasticity of supply is inelastic.
2. Over time price elasticity of supply becomes more elastic.
3. Correct: In the short run price elasticity of supply is inelastic and in the long run it becomes elastic.
4. In the long run price elasticity of supply is elastic.

 

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

Which of the following is the best example of a public good?

Select ONE answer:

1. Defence
2. Electricity supply
3. Health services
4. University education

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

1. Correct: non-excludable and non-rival.
2. Excludable and rival.
3. Rival.
4. Excludable and rival.

 

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

An economy is allocatively efficient when?

Select ONE answer:

1. the marginal private benefit of consumption equals the marginal social benefit
2. the output produced maximises total consumer welfare
3. there is neither unemployment nor underemployment of factors of production
4. total consumer surplus is exactly equal to total producer surplus

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

1. Incorrect (ignores production).
2. Correct: This is a statement which reflects what is meant by allocative efficiency.
3. Incorrect refers to technical productive efficiency.
4. Incorrect, simply untrue.

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

Which of the following is a feature of a market economy?

Select ONE answer:

1. Competition ensures product differentiation
2. Consumer preferences determine the allocation of resources
3. Producers aim to maximise positive externalities
4. Resources are allocated through the planning mechanism

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

1. Competition ensures that firms strive to minimise their average costs and achieve productive efficiency.
2. Correct: Changes in demand patterns by consumers lead to changes in the allocation of resources.
3. Consumers aim to maximise their individual welfare.
4. Resources are allocated through the price mechanism.

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