Category: Economics

The production possibilities frontier ……. ?

Select ONE answer:

1. refers to the technology used in such goods as computers and military aircraft.
2. marks the boundary between attainable combinations of goods and services and unattainable combinations.
3. once applied to U.S. technology but now refers to Japanese technology.
4. is also called the supply curve.

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

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If a perfectly competitive industry has external diseconomies, then the long-run supply curve is ……. ?

Select ONE answer:

1. perfectly inelastic.
2. positively sloped.
3. perfectly elastic.
4. negatively sloped.

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

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

External economies and diseconomies explain the shape of ……. ?

Select ONE answer:

1. the supply curve of the firm.
2. the long-run average total cost curve of a firm.
3. the short-run average total cost curve of a firm.
4. the long-run industry supply curve.

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.

In the long-run equilibrium in a perfectly competitive industry, the economic profit of the firms is ……. ?

Select ONE answer:

1. increasing.
2. negative.
3. zero.
4. positive.

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

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

In the long run, for a perfectly competitive market ……. ?

Select ONE answer:

1. if economic profit is equal to zero then there is no entry or exit of firms into or out of the market.
2. if economic profit is greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
3. if economic profit is less than zero, then some firms will exit the market and the industry supply curve will shift leftward.
4. All of the above answers are correct.

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.