The Multiple Choice Questions Blog

Which of the following explains why the rate of nominal GDP growth is difficult to measure accurately?

It is difficult to account for changes in:

Select ONE answer:

1. purchasing power parity
2. the price level
3. the size of the population
4. unrecorded economic activity

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

1. Confuses this measure with GDP at purchasing power parity, which is a component of the HDI.
2. Confuses real and nominal GDP.
3. Confuses nominal GDP with GDP per capita.
4. Correct: A decrease in unrecorded economic activity would imply nominal output has increased whereas there is simply an increase in the proportion of recorded economic activity.

 

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Which of the following is an example of current expenditure by the government?

Select ONE answer:

1. Construction of aircraft carriers.
2. Improvements to motorways to increase capacity.
3. Investment in additional offshore wind farms.
4. Salaries of National Health Service employees.

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

1. Capital expenditure
2. Capital expenditure
3. Capital expenditure
4. Correct: Salaries are current expenditure

 

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If a government decides to provide health care free at the point of delivery, then:

Select ONE answer:

1. the demand for health care will be perfectly elastic
2. health care will become non-rival
3. some form of rationing will have to be used in the allocation of health care
4. there will be no opportunity cost involved in the supply of health care

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

1. The demand for health care would still fall should a higher price be charged.
2. Health care will still be a rival.
3. Correct: Demand will exceed supply so some method will have to be used to decide who will be treated
4. There will be an opportunity cost as the resources which will be used could be utilised in producing other goods and services.

 

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The information below shows the total cost of production for a firm at different levels of output.

What is the average variable cost when 400 units are produced?

Select ONE answer:

1. £43,75
2. £87.00
3. £90.75
4. £134.50

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

1. AFC
2. MC
3. Correct – AVC
4. ATC

 

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In the diagram below demand increases from D to D1. Which area represents the increase in producer surplus?

Select ONE answer:

1. XYT
2. XZU
3. WTUV
4. YZUT

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 1

1. The original producer surplus.
2. The new producer surplus.
3. Not part of producer surplus.
4. Correct: XZU – XYT.

 

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