Economics Multiple Choice Question – 14 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

If the demand for a product is price elastic, this means?

Select ONE answer:

  1. A change in price has no effect on the quantity demanded
  2. A change in income has no effect on the quantity demanded
  3. An increase in price increases revenue
  4. An increase in price increases profits
  5. An increase in price decreases costs

What is the normal value of price elasticity of a product, if the demand is price inelastic:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3 – The formula for calculating the price elasticity of demand is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price. If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes).

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Economics Multiple Choice Question – 13 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Demand for a product is more likely to be price elastic if?

Select ONE answer:

  1. It is heavily branded
  2. There are few substitutes
  3. It is patented
  4. There are many similar products
  5. It is heavily differentiated

Explain with a real-life example what is meant by a price-elastic product:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4 – A number of factors come into play in determining whether demand is price elastic or price inelastic in a given market. Factors affecting price elasticity of demand include the number of close substitutes; the cost of switching between products; the degree of necessity or whether the good is a luxury; the proportion of a consumer’s income allocated to spending on the good; the time period allowed following a price change – demand is more price elastic, the longer that consumers have to respond to a price change; whether the good is subject to habitual consumption; peak and off-peak demand; and the breadth of definition of a good or service. With many similar products, there is no protection for the product against being switched to another competing product.

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Economics Multiple Choice Question – 12 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

If the Income Elasticity of Demand is +2 and income rises by 10%, what will happen to sales?

Select ONE answer:

  1. Rise by 5%
  2. Decrease by 5%
  3. Rise by 20%
  4. Fall by 20%
  5. Stay the same

Explain with a real-life example what is meant by an income-elastic product:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3 – The formula for calculating income elasticity of demand is the percent change in quantity demanded divided by the percent change in income. So if income goes up by 10% and YED is 2 then the % Change in QD will be 10% * 2 = 20%

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Business Studies Multiple Choice Question – 1 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Sales of a company’s product are £10,000. The whole market is worth £50,000.

Market share therefore equals?

Select ONE answer:

  1. 10%
  2. 20%
  3. 50%
  4. £4,000
  5. £5,000

Show your workings to arrive at your answer, and explain and justify your reasons
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – £10,000 / £50,000 = 20%

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Business Studies Multiple Choice Question – 30 November 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A random sample……?

Select ONE answer:

  1. Is always small
  2. Involves individuals who have an equal chance of selection
  3. Involves the whole target population
  4. Is used in secondary research
  5. Can only be 95% accurate

Why do firms sometime non-random samples:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – In this technique, each member of the population has an equal chance of being selected as the subject. The entire process of sampling is done in a single step with each subject selected independently of the other members of the population. There are many methods to proceed with simple random sampling.

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Business Studies Multiple Choice Question – 29 November 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Niche marketing is likely to involve?

Select ONE answer:

  1. Large-scale production
  2. Mass-market advertising
  3. Widespread distribution
  4. Focusing on a small segment of the market
  5. Production line

Give a real-life example of niche marketing and why it is successful:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 4 – It is the business of promoting and selling a product or service to a specialised or small segment of a market.

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Business Studies Multiple Choice Question – 28 November 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A dog product in the Boston Matrix?

Select ONE answer:

  1. Have low sales in a slow-growth market
  2. Have low sales in a high-growth market
  3. Have high sales in a slow-growth market
  4. Have high sales in a high-growth market
  5. Has not yet been launched

Give a real-life example of a dog product and explain why it is one:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 1 – Unsurprisingly, the term “dogs” refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

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