Category: Economics

The closer the substitutes for a good, the ………

Select ONE answer:

1. larger the proportion of income that is spent on the good.
2. smaller the degree of substitutability between the goods.
3. more elastic is the demand for the good.
4. less elastic is the demand for the good.

What is the implication for firms of changes in inflation?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Which goods have more elastic demands?

Select ONE answer:

1. goods which are necessities
2. goods with few substitutes
3. goods whose purchase represents a small percentage of income
4. goods with many substitutes

What is the implication for firms of changes in unemployment?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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To maximise its revenue……?

Select ONE answer:

1. a firm facing inelastic demand should always raise its price. 
2. a firm should always charge the highest price possible regardless of the elasticity of demand.
3. a firm facing elastic demand should always raise its price.
4. None of the above answers is correct.

What is the implication for firms of changes in taxation?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Demand is inelastic when a price ________ results in total revenue ________  ?

Select ONE answer:

1. fall; increasing
2. rise; decreasing
3. rise, increasing
4. fall, remaining the same

What is the implication for firms of changes in exchange rates?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is 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.

Demand curves with which of the following shapes will have constant elasticities at every point?

Select ONE answer:

1. demand curves that are perfectly horizontal lines
2. demand curves that are perfectly vertical lines
3. demand curves that are rectangular hyperbolas
4. all of the above

What is the implication for firms of changes in interest rates?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is 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.