The Multiple Choice Questions Blog

Which of the following is the best example of a public good?

Select ONE answer:

1. Defence
2. Electricity supply
3. Health services
4. University education

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. Correct: non-excludable and non-rival.
2. Excludable and rival.
3. Rival.
4. Excludable and rival.

 

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

An economy is allocatively efficient when?

Select ONE answer:

1. the marginal private benefit of consumption equals the marginal social benefit
2. the output produced maximises total consumer welfare
3. there is neither unemployment nor underemployment of factors of production
4. total consumer surplus is exactly equal to total producer surplus

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 2

1. Incorrect (ignores production).
2. Correct: This is a statement which reflects what is meant by allocative efficiency.
3. Incorrect refers to technical productive efficiency.
4. Incorrect, simply untrue.

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

Which of the following is a feature of a market economy?

Select ONE answer:

1. Competition ensures product differentiation
2. Consumer preferences determine the allocation of resources
3. Producers aim to maximise positive externalities
4. Resources are allocated through the planning mechanism

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 2

1. Competition ensures that firms strive to minimise their average costs and achieve productive efficiency.
2. Correct: Changes in demand patterns by consumers lead to changes in the allocation of resources.
3. Consumers aim to maximise their individual welfare.
4. Resources are allocated through the price mechanism.

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

Which of the following, according to classical economic theory, is it assumed that a firm will seek to maximise?

Select ONE answer:

1. Customer satisfaction
2. Economic welfare
3. Productive efficiency
4. Profit

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. The consideration of stakeholders and their needs is relatively new; it is not traditional economic theory.
2. This is a result of government taxation policies rather than an objective.
3. This isn’t an objective.
4. Correct: Firms have a profit motive, they’ll produce where MR=MC.

 

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

Which of the following is a consequence of using money rather than a barter system?

Select ONE answer:

1. It decreases specialisation
2. It decreases the ease of borrowing
3. It decreases the need for a double coincidence of wants
4. It decreases trade

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. It will increase specialisation because money is easier to exchange for an economic good.
2. It will increase the ease of borrowing because money is easier to exchange for an economic good
3. Correct: It will decrease the need for a double coincidence of wants because there is no longer the need to find two persons whose disposable processions mutually match each other’s wants.
4. It will increase trade because money is easier to exchange for an economic good.

 

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