Tag: A-Level

If the price elasticity of demand for clothing is estimated to be – 2.0, a 20% fall in the price of clothing will lead to a?

Select ONE answer:

1. 20% increase in quantity demanded
2. 20% decrease in quantity demanded
3. 40% increase in quantity demanded
4. 40% decrease in quantity demanded

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – formula ==> % change in quantity demanded / % change in price = PED e.g. measures the responsiveness of demand for a good or service to a change in its price ==> 40 / -20 = – 2.0
4. Not correct

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In India, a country with a population of over 1 billion, the agricultural industry is labour intensive.

This is MOST LIKELY to be because?

Select ONE answer:

1. technology is cheap
2. finance is readily available
3. there is no shortage of suitable workers
4. farming is only suited to capital intensive methods

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – machinery used in agriculture is likely to be expensive or if machinery was cheap this would lead to capital intensive production instead.
2. Not correct – because if finance is available to pay for technology it is more likely to be used.
3. Correct – Labour intensive is where a high proportion of output stems from physical workers not machinery/most costs are from paying wages to employees. India is a country with an abundance of cheap labour so it makes good economic sense to employ it (provides India with a competitive advantage). India has an abundant supply of low skilled workers which should keep labour costs down. The agricultural industry is able to keep its costs down as wage levels are likely to be low.
4. Not correct – although some farming can be done by machinery, the nature of the tasks make it more suitable for labour.

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Lego sells toys, such as Harry Potter characters, made from plastic bricks.

Each of the following is a product extension strategy that Lego could use EXCEPT?

Select ONE answer:

1. Lego video games
2. Lego books
3. Lego bricks
4. Lego clothing

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – video games are an add-on to the original idea designed to prolong the product’s life cycle.
2. Not correct – books are designed to raise the presence of the brand in order to increase the sale of bricks.
3. Correct – product extension strategy is a marketing method which seeks to increase sales/extends the maturity stage/prevents decline in sales of an existing product. An example of product extension strategies, e.g. modification, re-packaging, re-branding. Lego bricks are the original products and therefore cannot be a product extension strategy. The original idea is unlikely to continue to increase sales over a period of time, without a further stimulus.
4. Not correct – the introduction of Lego clothing is designed as a complementary good.

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Noodle offers ‘Innovation Time Off’ to its employees, to spend on things & projects that interest them.

In 2022, half of Noodle’s new products came from this policy.

According to employee motivational theory, this is an example of?

Select ONE answer:

1. self-actualisation
2. hygiene factors
3. health and safety
4. profit share

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Definition of employee motivational theory – ways to incentivise workers or identifies. Maslow or describes/identifies Self Actualisation as the highest level of the hierarchy of needs, which is achieved by giving more responsibility to employees. Which can therefore encourage employees to develop new ideas/ be creative/to innovate
2. Not correct – hygiene factors need to be in place before employees are motivated/only prevent dissatisfaction
3. Not correct – is wrong as health and safety is a hygiene factor
4. Not correct – employees are being offered more responsibility not a share of the profits

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Nancy owned a corporate events company.

Sales revenue fell and her company failed.

This is an example of?

Select ONE answer:

1. performance-related pay
2. an increase in orders
3. good management of cash flow
4. changing market conditions

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct – performance related pay is not a factor determining demand for the product/service as it rewards employee performance
2. Not correct – an increase in orders would increase the chance of the company doing well as demand rose
3. Not correct – good management of cash flow is more likely to help the business continue as it enables the monitoring of cash flow movements
4. Correct – Accurate definition of changing market conditions – the factors that alter the supply and demand for goods/services or sales revenue, e.g. price x quantity or business income. Identifies what causes market conditions to change e.g. recession, competitors. Therefore a fall in sales revenue could be due to either a fall in units demanded/sold or a decrease in the selling price of the products/service. Which may mean that Sarah’s business may not be able to cover her costs and therefore fail.

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