Economics Multiple Choice Question – 14 August 2017

Which ONE of the following best describes a ‘planned’ economy’?

Select ONE answer:

  1. An economic system in which decisions about production and investment are decided by individuals and firms.
  2. An economic system in which decisions about production and investment are decided by a central body or government.
  3. An economic system in which is designed to ensure the fairest allocation of scarce resources.
  4. An economic system in which decisions about production and investment are decided by a democratic vote of workers.
  5. An economic system in which decisions about production and investment are decided by committees.

Give 3 examples of the disadvantages of a ‘planned economy’?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2 – an economy in which production, investment, prices, and incomes are determined centrally by the government.

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

Economics Multiple Choice Question – 13 August 2017

Which ONE of the following is an advantage of ‘division of labour’?

Select ONE answer:

  1. There will be an increase in allocative efficiency.
  2. There will be an increase in motivation levels.
  3. Through repetition, a worker becomes more effective at his/her job.
  4. There will be an increase in the number of skills a worker will learn.
  5. There is a decrease in costs

Give 3 examples of the disadvantages of ‘division of labour’?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3 – Practice makes perfect. By concentrating on the repeating the same task again and again, a worker acquires dexterity, skill and speed, and more­over, division of labour avoids waste of time and effort caused by changes from one task to another. Specialisation requires simplification of tasks and facilitates use of labour saving devices. Due to all these the quantity and quality of work increase tremendously.

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

Economics Multiple Choice Question – 12 August 2017

Which ONE of the following best explains the difference between a ‘need’ and a ‘want’?

Select ONE answer:

  1. A good is said to be ‘needed’ if it is necessary for survival whereas a good that is ‘wanted’ is not essential but is desired.
  2. A good is said to be ‘needed’ if it is not essential but is desired whereas a good that is ‘wanted’ is necessary for survival.
  3. A good is said to be ‘needed’ if its consumption is based upon rational desires whilst a good that is ‘wanted’ has a consumption based upon irrational desires.
  4. A good is said to be ‘needed’ if it has to be provided by the Government whilst a good is said to be wanted’ if it is provided by the free market.
  5. A good is said to be ‘needed’ if it has to be provided by the free market whilst a good is said to be ‘wanted if it is provided by the Government.

Give 3 examples of a positive economic statement?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1 – In economics, the idea of survival is real, meaning someone would die without their needs being met. This includes things like food, water, and shelter. A want, in economics, is one step up in the order from needs and is simply something that people desire to have, that they may, or may not, be able to obtain.

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

Economics Multiple Choice Question – 11 August 2017

Which ONE of these is a normative economic statement?

Select ONE answer:

  1. An increase in the price of cocoa beans will lead to an increase in the price of coffee.
  2. Cars that consume more than the average amount of petrol per mile should have greater taxation.
  3. Subsidies given to a merit good will lead to a reduction in price to the consumer.
  4. The availability of gold as a natural resource is limited.
  5. School children must do 5 hours of homework per week to be successful.

Give 3 examples of a normative economic statement?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2 – In economics and philosophy, a normative statement expresses a value judgment about whether a situation is desirable or undesirable. It looks at the world as it “should” be.

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

Economics Multiple Choice Question – 31 July 2017

Excess capacity means?

Select ONE answer:

  1. Supply is less than demand
  2. Demand exceeds sales
  3. A firm is producing less than its competitors
  4. A firm is producing less than it could
  5. A firm can sell more than it can make

Explain why a firm might have excess capacity?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Excess capacity is a situation in which actual production is less than what is achievable or optimal for a firm. This often means that the demand for the product is below what the business could potentially supply to the market.

 

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