The Multiple Choice Questions Blog

A market consists of 10 individuals with different demand curves in a given period.

What is a calculation that could be used as part of the process to determine the market equilibrium in that period?

Select ONE answer:

1. at each price add the quantities demanded by each individual
2. at each quantity average the price that each individual is prepared to pay
3. combine the price elasticity of demand (PED) and the price elasticity of supply (PES) at each price
4. determine the PED and multiply it by the quantity demanded

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.

Reena makes a living by selling paintings of the town in which she lives. She sells them in an open-air market once a week.

In order to be able to sell more pictures in a week she decides to buy a studio, pay someone to help in the studio and try to increase demand by advertising in the local paper.

Which factors of production were changed?

Select ONE answer:

1. economic growth, resource allocation, free market equilibrium
2. government intervention, monetary policy, opportunity cost
3. public good, market prices, fiscal policy
4. supply-side policy, negative externalities, factors of production

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 government subsidised a new factory in a rural area to create jobs. It also provided training courses at a college. Objectors claimed the development would destroy an area of natural beauty.

What concepts are involved in this statement?

Select ONE answer:

1. economic growth, resource allocation, free market equilibrium
2. government intervention, monetary policy, opportunity cost
3. public good, market prices, fiscal policy
4. supply-side policy, negative externalities, factors of production

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 4

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

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

Using all available resources an economy produces different combinations of two types of good, clothes and food, shown on the production possibility curve (PPC) diagram.

What does the PPC indicate?

Select ONE answer:

1. It is more efficient to produce more of clothes than food.
2. It is only possible to increase the output of clothes by reducing the output of food.
3. The best situation is to produce equal units of clothes and food.
4. The cost of producing a unit of clothes is always higher than the cost of producing a unit of food.

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.