The Multiple Choice Questions Blog

What would cause an increase in the transactions demand for money?

Select ONE answer:

1. an increase in the rate of interest
2. an increase in nominal national income
3. a fall in the price of bonds
4. an increase in unemployment

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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

The accelerator principle refers to a relationship between investment and …..?

Select ONE answer:

1. the level of GDP.
2. changes in GDP.
3. the level of interest rates.
4. changes in interest rates.

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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

A country’s GDP declines but the welfare of its population rises.

What could explain this?

Select ONE answer:

1. a fall in leisure time
2. a fall in the size of the subsistence sector
3. a rise in positive externalities
4. a rise in the size of the population

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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

Which of the following will directly result in an increase in India’s Gross National Product?

Select ONE answer:

1. increased wages earned in a British-owned factory in India
2. increased imports of goods and services
3. increased outflows of net property income
4. increased taxes on domestic expenditure

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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

A good gives rise to external benefits and is produced under conditions of imperfect competition.

Which statement must be true?

Select ONE answer:

1. Consumers of the good are paying too low a price.
2. Firms producing the good will make a loss.
3. Output of the good is below the socially optimum level.
4. Social costs of production exceed private costs.

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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