Tag: A-Level

Which of the following would cause a shift to the right of the aggregate demand curve?

Select ONE answer:

1. a decrease in investment
2. a decrease in the price level
3. an increase in exports
4. an increase in labour productivity

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. This will cause a shift to the left of the AD curve.
2. This will cause a movement along the AD curve.
3. Correct: Exports are a component of AD. An increase in exports would shift the AD curve to the right.
4. This would cause a shift to the right of the AS curve.

 

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What is a recession?

Select ONE answer:

1. a decrease in a current account deficit over a sustained period
2. a decrease in the price of the currency over a sustained period
3. a decrease in the price level over a sustained period
4. a decrease in the real gross domestic product over a sustained period

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. This is no specific term for a reduction in a current account deficit.
2. This is depreciation or devaluation.
3. This is deflation.
4. Correct: A recession is a fall in the country’s output over a period of six months or more.

 

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A firm employs 60 workers, paying each worker £520 a week.

To attract an extra worker, the firm raises the wage of each worker to £540 a week.

What is the marginal cost of employing the 61st worker?

Select ONE answer:

1. £20
2. £540
3. £1,740
4. £32,940

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. This is the rise in pay each of the original workers receives.
2. This is the new wage.
3. Correct: the rise in total wages is £32,940 – £31,200 or £540+(60 * £20)
4. This is the new total wage bill

 

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The table below shows the market for a product before the imposition of an indirect tax.

What would be the change in the equilibrium price if a tax of £4 was imposed?

Select ONE answer:

1. £1
2. £2
3. £3
4. £4

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: The initial equilibrium price is £16. When an indirect tax of £4 is imposed, the firms would receive the sale price minus the tax. So now at £20, they will supply what they previously supplied at £16. This will create a new supply curve. The new equilibrium price is now £17, a rise of £1. Consumers are bearing £1 of the tax and the firms £3.
2. Incorrect
3. Incorrect
4. Incorrect

 

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Which of the following combination of statements about a public good is correct?

Select ONE answer:

 

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. Correct – Incorrect
2. Correct – Incorrect
3. Correct – Correct: Public goods involve non-excludability, therefore, it is impossible to charge an individual for use. They are also non-rival so one person per se does not reduce the availability for others.
4. Incorrect – Incorrect

 

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