Economics Multiple Choice Question – 28 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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A closed economy has a banking system consisting of a single bank.

The bank operates with a cash ratio of 10%.

Customers deposit £10,000 in cash.

Assuming no subsequent change in notes and coins in circulation what is the maximum amount of loans that the bank can create?

Select ONE answer:

  1. £1,000
  2. £9,000
  3. £90,000
  4. £100,000

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

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

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

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 – 21 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 country’s national income per head falls, but there is a rise in consumption.

What could explain this?

Select ONE answer:

  1. a decrease in the net property income from abroad
  2. a fall in population
  3. an increase in the trade deficit
  4. a rise in negative externalities

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.

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