Tag: ACA

The recession phase of the business cycle will normally be accompanied by all the following except?

Select ONE answer:

1. A rise in the rate of inflation
2. A fall in the level of national output
3. An improvement in the trade balance
4. A rise in the level of unemployment

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Recession and declining demand go together. Inflation and declining demand do not. The trade balance is likely to improve due to a decrease in demand for imports.
2. Not correct
3. Not correct
4. Not correct

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Which of the following is the correct sequence in a business cycle?

Select ONE answer:

1. Boom, Recession, Depression, Recovery
2. Recession, Recovery, Boom, Depression
3. Boom, Recovery, Recession, Depression
4. Recovery, Recession, Depression, Boom

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > When an economy booms, it reaches a turning point and goes into recession. The recession deepens into a depression. Eventually, there is another turning point in the economy, and the business cycle goes into recovery and then back into boom, and so on.
2. Not correct
3. Not correct
4. Not correct

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The marginal propensity to consume measures?

Select ONE answer:

1. The relationship between changes in consumption and changes in consumer utility
2. The proportion of household incomes spent on consumer goods
3. The proportion of total national income spent on consumer goods
4. The relationship between changes in income and changes in consumption

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The relationship between changes in income and changes in consumption.

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Which of the following is a source of economies of scale?

Select ONE answer:

1. The introduction of a new product
2. Bulk buying
3. The employment of skills in production
4. Cost savings resulting from new production techniques

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Technical improvements could apply at any scale of operations, as well as the employment of skills and the introduction of a new product. The ability to obtain discounts because of the size of orders (bulk buying) is a direct result of larger scale operations.
3. Not correct
4. Not correct

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

Which of the following would be regarded by economists as a factor of production?

Select ONE answer:

1. Demand
2. Enterprise
3. Supply
4. Innovation

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Enterprise is one of the four factors of production, along with labour (including management), land and capital.
3. Not correct
4. Not correct

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