Tag: KS4

Country A has a comparative advantage in producing Barley and country B in producing Aeroplanes.

However, the countries choose not to specialise and trade.

What is a valid reason for this behaviour?

Select ONE answer:

1. The exchange rate lies within the countries’ opportunity cost ratios.
2. There is immobility of factors of production between the countries.
3. Trade is based on absolute rather than comparative advantage.
4. Transport costs are high relative to the opportunity cost differences between the countries.

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.

Which of the following is the best example of a public good?

Select ONE answer:

1. education
2. medical care
3. postal services
4. radio broadcasts

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.

What explains why the social cost of developing tourism on a remote island is greater than the private cost?

Select ONE answer:

1. the costs of building extra hotels on the island
2. the extra costs of providing the tourists with food
3. the travel costs paid by tourists who visit the island
4. the harm to the environment caused by the tourists

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 calculating the short-run supply schedule for a firm, what is assumed to remain unchanged?

Select ONE answer:

1. the number of consumers
2. the price of the good
3. the quantities of all factors
4. the state of technology

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.

What is meant by the ceteris paribus assumption?

Select ONE answer:

1. an assumption that is not supported by the facts
2. an assumption that consumers act rationally
3. an assumption that two factors are in equilibrium
4. an assumption that other factors are held constant

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.