Tag: KS4

What is the most likely consequence of an increase in a country’s balance of payments deficit?

Select ONE answer:

1. an increase in the foreign value of the currency of the country
2. an increase in the level of income within the country
3. a reduction in the quantity of money within the country
4. a reduction in unemployment within the country

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

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

The figures show the consumer price index (CPI) of a country. (1971 = 100)

• 1998 – 200
• 1999 – 204
• 2000 – 206
• 2001 – 209

What can be deduced from the data?

Select ONE answer:

1. There was hyperinflation between 1971 and 1998.
2. The rate of inflation rose in 2000.
3. The rate of inflation in 1999 was 4%.
4. The country experienced inflation in the three years down to the end of 2001.

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

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

In which situation will it be necessary to use an alternative to the price mechanism to allocate a good between consumers?

Select ONE answer:

1. The quantity of the good available is fixed.
2. Producers of the good receive a subsidy.
3. The government imposes a specific tax on the good.
4. The government sets a maximum price below the equilibrium price.

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

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

Why do governments often subsidise the cost of entrance to museums?

Select ONE answer:

1. Museums are a pure public good.
2. Social benefits are less than social costs.
3. Social benefits exceed private benefits.
4. Social costs exceed private costs.

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

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

In a market economy, what is the basis for determining the allocation of factors of production.

Select ONE answer:

1. the market share of companies
2. the needs of the country
3. the pattern of consumers’ spending
4. the wealth of entrepreneurs

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

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