Tag: A-Level

The table below shows the inflation rate for an economy between 2012 and 2015.

What can be concluded from the information?

Select ONE answer:

1. The price level was lowest in 2014.
2. The price level was lowest in 2016.
3. The economy experienced deflation over the whole period.
4. The value of money rose over the whole 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 1

1. Correct: The price level rose over the period 2014 to 2017 and so it was at its lowest in 2014.
2. The price level did fall in 2016 but it was still higher than in 2014.
3. The economy experienced deflation in 2016 but over the period the price level rose.
4. The value of money fell over the period as the price level rose.

 

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Which of the following is not a feature of a ‘good’ tax?

Select ONE answer:

1. certainty
2. convenience
3. durability
4. equity

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 a quality of a good tax.
2. This is a quality of a good tax.
3. Correct: This a characteristic of money but not a feature of a good tax.
4. This is the quality of a good tax.

 

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What do the weights in the Consumer Price Index show?

Select ONE answer:

1. changes in the price of the goods and services purchased
2. changes in the quality of the goods and services purchased
3. the proportion of total expenditure spent on different categories of goods and services
4. the seasonal fluctuations in the price of clothing, food and fuel

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. Prices are multiplied by weights to give a weighted price index.
2. The CPI does not reflect quality changes.
3. Correct: The weights give greater importance to changes in the prices of products that households have devoted a high proportion of their expenditure.
4. The CPI is seasonally adjusted but this is not the function of the weights.

 

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Christine initially has a disposable income of £500 a week and spends £400.

Christine’s disposable income then rises to £750 a week and her spending to £500.

What is Christine’s marginal propensity to consume?

Select ONE answer:

1. 0.4
2. 0.6
3. 0.67
4. 1.0

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: mpc is ∆C/∆Y = 100/250.
2. Incorrect: This is mps. ∆S/∆Y = 150/250.
3. Incorrect: This is apc. C/Y = 500/750.
4. Incorrect: This is the new spending/original income. 500/500.

 

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Which of the following is an example of current government expenditure?

Select ONE answer:

1. government spending on building new hospitals
2. government spending on improving mobile network coverage in rural areas
3. government spending on increasing the number of lanes on a motorway
4. government spending on teachers’ salaries

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 an example of capital government expenditure.
2. This is an example of capital government expenditure.
3. This is an example of capital government expenditure.
4. Correct: Current government expenditure is spending on items such as raw materials and wages. It is short term spending that has to be renewed each year. In contrast, capital spending is spending on physical assets and is long term.

 

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