Tag: KS4

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

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

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

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

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

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

A firm operates in a contestable market.

Which statement correctly describes the firm’s conduct?

Select ONE answer:

1. It will set a price to maximise profits in the short run.
2. It will set a price to maximise its revenue.
3. It will set a price to deter the entry of new firms.
4. It will produce at minimum average cost.

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.

 A firm is operating in an imperfectly competitive market.

Why does the marginal revenue product of a factor of production employed by the firm fall as more of the factor is employed?

Select ONE answer:

1. Its marginal physical product alone falls.
2. Its marginal revenue alone falls.
3. Its marginal physical product and its marginal revenue both fall.
4. The supply price of the factor rises.

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.