Economics Multiple Choice Question – 21 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Georgina buys more sweaters when her income increases. For Georgina, sweaters are a …….?
Select ONE answer:

  1. Inferior good
  2. Normal good
  3. Substitute
  4. Compliment

What is meant by “an inferior good”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2

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Economics Multiple Choice Question – 20 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

If the price of a DVD player falls, then in the market for DVDs (which is a compliment) …….?

Select ONE answer:

  1. The demand curve for DVDs would shift rightward.
  2. There would be a movement upward along the demand curve for DVDs.
  3. The demand curve for DVDs would shift leftward.
  4. There would be a movement downward along the demand curve for DVDs.

What is meant by “a complementary good”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

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Economics Multiple Choice Question – 19 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

If the price of chicken falls, then in the market for beef (which is complimentary) …….?

Select ONE answer:

  1. The demand curve for beef would shift rightward.
  2. There would be a movement downward along the demand curve for beef.
  3. The demand curve for beef would shift leftward.
  4. There would be a movement upward along the demand curve for beef.

What is meant by “a normal good”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3

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Economics Multiple Choice Question – 18 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The observation that the demand curve for grape jelly shifted rightward every time the price of peanut butter fell means that grape jelly and peanut butter are?

Select ONE answer:

  1. Complements
  2. Substitutes
  3. Normal goods
  4. Inferior goods

What is meant by “the substitution effect”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

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Economics Multiple Choice Question – 17 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following would lead to a movement along, but NO shift in, the demand curve for spinach?

Select ONE answer:

  1. A newly discovered increase in the nutritional value of spinach
  2. An increase in the price of broccoli, a substitute for spinach
  3. An increase in income for all spinach lovers
  4. Disastrous weather that destroys about half of this year’s spinach crop

What is meant by “a veblen good”?

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

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

The answer is 4

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Economics Multiple Choice Question – 16 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

When the price of a normal good falls, ceteris paribus, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.
Select ONE answer:

  1. A decrease, a decrease
  2. An increase, an increase
  3. An increase, a decrease
  4. A decrease, an increase

What is meant by “relative price”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2

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Economics Multiple Choice Question – 15 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The “income effect” in the market for aspirin means that ….?

Select ONE answer:

  1. A decrease in the price of a substitute good like acetaminophen will make aspirin takers 
feel a little poorer than they were before.
  2. Aspirin is generally taken by people with higher than average incomes.
  3. An increase in the price of aspirin will reduce the total purchasing power of aspirin-takers, making them able to afford fewer aspirin.
  4. An increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.

What is meant by “ceteris paribus”?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3

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