Tag: A-Level

Which of the following statement is NOT a short-run decision?

Select ONE answer:

1. whether to enter or exit an industry.
2. what quantity to produce.
3. whether to produce or shut down.
4. Both answers A and C are correct.

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

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Marginal revenue is defined as …..……. ?

Select ONE answer:

1. total revenue divided by the total quantity sold.
2. the change in total revenue that results from a one-unit increase in the quantity sold.
3. the value of a firm’s sales.
4. the total revenue from the total amount the firm sells.

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 2

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For a perfectly competitive firm, the price is the same as …..……. ?

Select ONE answer:

1. total revenue.
2. average variable cost.
3. marginal revenue.
4. both answers A and B are correct.

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

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The firm’s goal is to …..……. ?

Select ONE answer:

1. maximize its normal profit.
2. maximize its economic profit.
3. maximize its industry’s revenue.
4. maximize its total revenue.

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 2

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

In a perfectly competitive market …..……. ?

Select ONE answer:

1. each firm sets its own price so that it is different from its competitors.
2. each firm takes the good’s price as given to it by the market.
3. an economic profit is certain.
4. consumers are persuaded by advertising.

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 2

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