Tag: KS5

Economics Multiple Choice Question – 2 November 2017

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

The workers in a factory currently earn £240 for a 40 hour week. The management offers them a choice between either a straight 10% wage increase or an increase in the weekly wage to £260 along with a reduction in hours from 40 to 39 hours.

Disregarding the value of leisure time, what is the opportunity cost to each worker of opting for the 39 hour week?

Select ONE answer:

  1. £4.00
  2. £6.00
  3. £20.00
  4. £24.00
  5. £30.00

Show your workings to arrive at your answer, and explain and justify your reasons?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1 – Opportunity Cost is a key concept in economics and its principle applies to many areas of economic activity. Here it’s applied to wages. As in this question, you will often need to make simple calculations so a calculator might be handy.  Option one is an increase of 10% of 240 pounds = 24 pounds. To get this what does the worker have to give up, that is, the opportunity cost? The pay increase if the extra leisure hour is taken is 260-240 pounds = 20 pounds per week. So the lost income through opting for the extra leisure hour is 4 pounds, the opportunity cost. Checking the other options you can see that both 3 and 4 are plausible but wrong answers because both figured in our calculations. To be good at MCQs you have to think with precision!

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Business Studies Multiple Choice Question – 22 October 2017

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

Mass marketing is likely to involve?

Select ONE answer:

  1. Job production
  2. Flow production
  3. Low fixed costs
  4. Large market size
  5. Limited distribution

Give a real life example of mass marketing:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 4 – Mass marketing is a market strategy in which a firm decides to ignore market segment differences and appeal to the whole market with one offer. This supports the idea of broadcasting a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the media used to reach this broad audience. By reaching the largest audience possible, exposure to the product is maximized, and in theory this would directly correlate with a larger number of sales or buys into the product.

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Business Studies Multiple Choice Question – 21 October 2017

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

A cash cow product in the Boston Matrix?

Select ONE answer:

  1. Has low sales in a slow-growth market
  2. Has low sales in a high-growth market
  3. Has high sales in a slow-growth market
  4. Has high sales in a high-growth market
  5. Has no sales

Give a real-life example of a cash cow product and explain why it is one:
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This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 3 – Cash cows are low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit – so that they continue to generate the strong cash flows that the company needs for its Stars.

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Business Studies Multiple Choice Question – 20 October 2017

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

Price skimming is NOT likely if?

Select ONE answer:

  1. The firm has a unique product
  2. The firm has a patent for the product
  3. Demand for the good is price elastic
  4. Demand for the good is price inelastic
  5. The firm has a heavily branded good

Explain your answer using diagrams:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 3 – Price skimming is a pricing strategy in which a business sets a relatively high initial price for a product or service at first, then lowers the price over time. It is effective only when the firm is facing an inelastic demand curve. If the long run demand schedule is elastic, market equilibrium will be achieved by quantity changes rather than price changes. Penetration pricing is a more suitable strategy in this case.

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Business Studies Multiple Choice Question – 19 October 2017

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

Price discrimination is …?

Select ONE answer:

  1. Charges the same price for the same goods
  2. Sets a price by adding percentage to costs
  3. Uses a high price to enter a market
  4. Uses a low price to enter a market
  5. Sets different prices for different customers for the same good or service

Give a real-life example of price discrimination:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 5 – Price discrimination is the practice of charging a different price for the same good or service.

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