A-level Economics quiz

Question 1

Which of the following is an example of monetary policy

Accepted Answer

A devaluation of the exchange rate

Question 2

The XED coefficient for substitutes is positive?

Accepted Answer

True

Question 3

What are index numbers?

Accepted Answer

Numbers designed to show the sizes of changes in variables more clearly

Question 4

What was the main reason why Thomas cook and TOY'S R US went into administration?

Accepted Answer

Poor cash flow preventing debt repayments

Question 5

Generating a normal profit means that

Accepted Answer

Total revenue = Total costs

Question 6

What is the formula for price elasticity of supply?

Accepted Answer

% change in quantity supplied / % change in price of the good

Question 7

What is the target level from UK unemployment?

Accepted Answer

3%

Question 8

Which curve shows the macroeconomic trade off between low unemployment and high inflation and vice versa

Accepted Answer

The phillips curve

Question 9

The UK supermarket industry is an example of?

Accepted Answer

An oligopoly

Question 10

Demand-deficient unemployment is also known as:

Accepted Answer

Cyclical unemployment

Question 11

A change in national income of the economy to result in a proportionally larger rise in business investment is known as?

Accepted Answer

The accelerator effect

Question 12

If the PPP exchange rate is £1 =$1.60 and the floating (nominal) exchange rate is £1=$1.70, the US dollar is undervalued

Accepted Answer

True

Question 13

What is the meaning of opportunity cost?

Accepted Answer

The cost of the next best alterntive foregone when a choice has to be made

Question 14

In the short run, which factors of production are generally fixed

Accepted Answer

Capital, Land

Question 15

This diagram shows which of the following:

Accepted Answer

A positive externality in consumption

Question 16

In 2021, the G7 held an agreement to enforce a minimum corporation tax rate of?

Accepted Answer

15%

Question 17

Specialisation is dependent upon a effective means of what?

Accepted Answer

Exchange

Question 18

A rise in the demand for nurses to meet greater demand for healthcare services is an example of?

Accepted Answer

Derived demand

Question 19

Which of the following characterises a public good

Accepted Answer

Non-excludable, Non-rejectable, Non-rival

Question 20

Higher interest rates may lead to lower aggregate demand through:

Accepted Answer

Reduced investment with increased finance costs on outstanding loans., Reduced consumption with increased variable mortgage repayments, Reduced net exports with Inflows of hot money increasing the exchange rate

A-level Economics quiz

Questions 20

A-level Economics quiz

Questions 20