Economics Multiple Choice Question – 28 July 2017

For an economist, the key purpose of economic activity is to?

Select ONE answer:

  1. To remove inequality
  2. To satisfy needs and wants
  3. Save scarce resources
  4. Maximise profit
  5. Help government planning

Explain what is the basic economic problem?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2 – To satisfy needs and wants

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Economics Multiple Choice Question – 27 July 2017

For an economist, the key purpose of economic activity is to?

Select ONE answer:

  1. To remove inequality
  2. To satisfy needs and wants
  3. Save scarce resources
  4. Maximise profit
  5. Help government planning

Explain what is the basic economic problem?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2 – To satisfy needs and wants

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

Economics Multiple Choice Question – 26 July 2017

Which one of the following statements is true?

Select ONE answer:

  1. A normative statement can be proven to be true or false
  2. A positive statement never contains the words could or should
  3. A normative statement always includes words such as should and must
  4. A positive statement can be tested against facts
  5. A normative statement is always expressed in numerative terms.

Explain what is a normative statement:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – A positive statement can be tested against facts

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Economics Multiple Choice Question – 25 July 2017

Deflation means?

Select ONE answer:

  1. The economy is declining
  2. The interest rate is falling
  3. The exchange rate is rising
  4. Prices are falling
  5. Unemployment is rising

Explain one reason why deflation might occur:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Deflation is reduction of the general level of prices in an economy.

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Economics Multiple Choice Question – 24 July 2017

If the Income Elasticity of Demand for a product 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 – Sales will rise by 20% i.e. YED of 2 * 10%.

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Economics Multiple Choice Question – 23 July 2017

Price elasticity of demand measures?

Select ONE answer:

  1. % change in quantity demanded compared to % change in price
  2. % change in quantity supplied compared to % change in price
  3. % change in price compared to % change in supply
  4. % change in quantity demanded compared to % change in income
  5. % change in quantity demanded compared to % change in advertising

Explain what is meant by price-inelastic demand:

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

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

The answer is 1 – The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price.

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