Economics Multiple Choice Question – 27 November 2022

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

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What is likely to cause a decrease in aggregate supply?

Select ONE answer:

  1. a decrease in consumption expenditure
  2. an increase in labour productivity
  3. a decrease in rates of unemployment benefit
  4. an increase in wage costs per unit of output

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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

Economics Multiple Choice Question – 26 November 2022

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

Photo by Aleksejs Bergmanis on Pexels.com

According to monetarist theory, what will be the short-run effect of an unexpected increase in the money supply?

Select ONE answer:

  1. an appreciation of the foreign exchange rate
  2. an increase in employment
  3. an increase in real wages
  4. an increase in the rate of interest

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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

Economics Multiple Choice Question – 25 November 2022

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

Photo by Quang Nguyen Vinh on Pexels.com

What will cause interest rates to rise?

Select ONE answer:

  1. an unexpected increase in the prices of bonds
  2. an increase in the nominal money supply
  3. an increase in the volume of output
  4. a reduction in the price level

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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

Economics Multiple Choice Question – 24 November 2022

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

Photo by Quang Nguyen Vinh on Pexels.com

A closed economy is initially in equilibrium with a national income of £100 million, and a capital stock of £25 million.

Aggregate demand increases by £10million.

According to the accelerator principle, by how much will net investment increase?

Select ONE answer:

  1. £10m
  2. £5m
  3. £2.5m
  4. £2m

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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

Economics Multiple Choice Question – 23 November 2022

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

Photo by Aleksejs Bergmanis on Pexels.com

In an economy, the marginal propensity to consume of the unemployed is higher than that of taxpayers.

The government increases both expenditure on unemployment benefits and taxation by £10 million.

What will be the impact on aggregate demand?

Select ONE answer:

  1. It will be unchanged.
  2. It will increase by less than £10 million.
  3. It will increase by £10 million.
  4. It will decrease by £10 million.

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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

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