Tag: A-Level

What is MOST likely to lead to a persistent surplus in a country’s current account of its balance of payments?

Select ONE answer:

1. a low domestic savings rate
2. an undervalued exchange rate
3. highly protectionist policies by other countries
4. low investment income from abroad

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.

How will an increase in government spending on infrastructure affect aggregate demand and aggregate supply?

Select ONE answer:

1. Changes in quantity demanded can cause changes in any of the other variables.
2. Consumer preferences are always assumed to remain unchanged.
3. Only one variable is assumed to change while the others remain the same.
4. Several variables change simultaneously.

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.

When will the imposition of a tariff by a country on the goods and services of its major trading partners reduce the country’s expenditure on imports?

Select ONE answer:

1. when the income elasticity of demand for imports is greater than 1
2. when the price elasticity of demand for imports is greater than 1
3. when the price elasticity of demand for imports is less than 1
4. when the price elasticity of supply of imports is greater than 1

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.

Which is the MOST appropriate reason for the continued government ownership of a natural monopoly?

Select ONE answer:

1. The government will guarantee competitive behaviour.
2. The government will ignore any losses made by the monopoly.
3. The government will maximise profits.
4. The government will take account of external benefits.

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 4

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

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

A government gives a subsidy to a producer of a product.

What will be the likely effect of this?

Select ONE answer:

1. a shift to the left in the demand curve and a rise in equilibrium quantity
2. a shift to the left in the supply curve and a rise in equilibrium quantity
3. a shift to the right in the demand curve and a fall in equilibrium price
4. a shift to the right in the supply curve and a fall in equilibrium price

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 4

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

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