Economics Multiple Choice Question – 25 July 2017

Deflation means?

Select ONE answer:

  1. The economy is declining
  2. The interest rate is falling
  3. The exchange rate is rising
  4. Prices are falling
  5. Unemployment is rising

Explain one reason why deflation might occur:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Deflation is reduction of the general level of prices in an economy.

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

Economics Multiple Choice Question – 24 July 2017

If the Income Elasticity of Demand for a product is +2 and income rises by 10%, what will happen to sales?

Select ONE answer:

  1. Rise by 5%
  2. Decrease by 5%
  3. Rise by 20%
  4. Fall by 20%
  5. Stay the same

Explain with a real-life example what is meant by an income-elastic product:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3 – Sales will rise by 20% i.e. YED of 2 * 10%.

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

Economics Multiple Choice Question – 23 July 2017

Price elasticity of demand measures?

Select ONE answer:

  1. % change in quantity demanded compared to % change in price
  2. % change in quantity supplied compared to % change in price
  3. % change in price compared to % change in supply
  4. % change in quantity demanded compared to % change in income
  5. % change in quantity demanded compared to % change in advertising

Explain what is meant by price-inelastic demand:

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

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

The answer is 1 – The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price.

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

Business Studies Multiple Choice Question – 22 July 2017

A business plan is?

Select ONE answer:

  1. A guarantee of success
  2. Produced by the bank
  3. Likely to include a marketing and financial plan
  4. A legal requirement
  5. Only required by companies

Explain one possible benefit of producing a business plan for potential investors:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 3 – will normally include a marketing and financial plan amongst other sections.

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

Business Studies Multiple Choice Question – 21 July 2017

A stakeholder is ….?

Select ONE answer:

  1. Is always an owner of the business
  2. Is an individual or group affected by a firm’s actions
  3. Must be an employee of the business
  4. Must be linked to the government
  5. Must be a customer

State four stakeholders groups:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – Stakeholders are individuals or groups affected by a firm’s decision either internally like an employee or externally like a customer.

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