Economics Multiple Choice Question – 24 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In an open economy with a government sector, the marginal propensity to import is 0.3, the 
marginal propensity to tax is 0.3 and the marginal propensity to save is 0.2. What is the value of the multiplier?

Select ONE answer:

  1. 1.25
  2. 2
  3. 2.5
  4. 5

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 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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Economics Multiple Choice Question – 23 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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What does the Kuznets curve represent?

Select ONE answer:

  1. changes in income inequality over time
  2. changes in the Human Development Index over time
  3. changes in the Multidimensional Poverty Index over time
  4. the inverse of a Lorenz curve

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 1

  1. Correct
  2. Not correct
  3. Not 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 – 22 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which adjustments to real GNP per head might make it a more reliable indicator when comparing standards of living in different countries?

Select ONE answer:

  1. adjustments to allow for differences in the level of government spending in different countries
  2. adjustments to allow for differences in the rates of inflation in different countries
  3. adjustments to allow for differences in the size of the hidden economy in different countries
  4. adjustments to allow for differences in the value of exports from different 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 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 – 21 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which source of income is NOT included in measuring real GDP?

Select ONE answer:

  1. pension paid to retired people
  2. profits made by firms
  3. rent paid to landlords
  4. wages paid to nurses

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 1

  1. Correct
  2. Not correct
  3. Not 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 – 20 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The government introduces a minimum wage above the equilibrium market wage rate.

How will this affect low-paid workers according to marginal revenue product (MRP) theory?

Select ONE answer:

  1. All those initially in employment will receive the new guaranteed minimum wage.
  2. Fewer of those not already in employment will enter the labour force.
  3. There will be an increase in the number of low-paid workers in employment.
  4. Some low-paid workers will lose their job.

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.