Tag: A-Level

Which change in economic circumstances is MOST likely to lead to a reduction in the rate of domestic inflation in an economy?

Select ONE answer:

1. a depreciation in the currency
2. a reduction in the productivity of labour
3. a world-wide recession
4. an increase in direct taxes to finance increased welfare payments

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 3

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

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

An economy has a balance of payments surplus, which it wishes to eliminate.

In order to achieve this objective, which combination of polices would be MOST appropriate?

Select ONE answer:

1. a depreciation of the currency and an increase in government spending
2. an appreciation of the currency and a cut in interest rates
3. an increase in the money supply and a pay freeze
4. increases in both direct and indirect taxation

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.

What would not be included in Devonia’s balance of payments accounts?

Select ONE answer:

1. financial investments in Devonia by Olbanian banks
2. foreign aid received by Devonia
3. the Devonian terms of trade
4. the takeover of a Devonian company by a Dragonian company

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 3

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

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