Category: Economics

Which of the following, according to classical economic theory, is it assumed that a firm will seek to maximise?

Select ONE answer:

1. Customer satisfaction
2. Economic welfare
3. Productive efficiency
4. Profit

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 4

1. The consideration of stakeholders and their needs is relatively new; it is not traditional economic theory.
2. This is a result of government taxation policies rather than an objective.
3. This isn’t an objective.
4. Correct: Firms have a profit motive, they’ll produce where MR=MC.

 

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Which of the following is a consequence of using money rather than a barter system?

Select ONE answer:

1. It decreases specialisation
2. It decreases the ease of borrowing
3. It decreases the need for a double coincidence of wants
4. It decreases trade

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. It will increase specialisation because money is easier to exchange for an economic good.
2. It will increase the ease of borrowing because money is easier to exchange for an economic good
3. Correct: It will decrease the need for a double coincidence of wants because there is no longer the need to find two persons whose disposable processions mutually match each other’s wants.
4. It will increase trade because money is easier to exchange for an economic good.

 

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Which of the following describes a free good?

Select ONE answer:

1. A free good is one given away to consumers to promote the sale of other goods
2. A free good is one provided free of charge to consumers by the government
3. A free good is one that gives zero satisfaction to consumers
4. A free good is one that has zero opportunity cost

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 4

1. Subsidised by retailer/producer.
2. Subsidised by the government.
3. Zero marginal utility.
4. Correct: Definition.

 

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Scarcity is represented on the production possibilities frontier by …… ?

Select ONE answer:

1. the fact that there are only two goods in the diagram.
2. technological progress.
3. the amount of the good on the horizontal axis forgone.
4. the fact there are attainable and unattainable points.

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 4

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On the vertical axis, the production possibilities frontier shows ________ ; on the horizontal axis, the production possibilities frontier shows ________ ?

Select ONE answer:

1. the quantity of a good; a weighted average of resources used to produce the good.
2. the quantity of a good; the number of workers employed to produce the good.
3. the quantity of a good; the price of the good.
4. the quantity of one good; the quantity of another good.

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 4

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