---

---

1

An oil company announced in 2015 that it was starting its drilling operations for oil deposits in the Arctic Ocean. What will be the effect of this?

2. The allocation of resources  →  2.2. The role of markets in allocating resources

3. Microeconomic decision makers  →  3.6. Firms and production

Open

2

A self-employed fortune teller earns a living by reading the palms of people’s hands. Which factors of production are essential to this activity?

1. The basic economic problem  →  1.2. The factors of production

3. Microeconomic decision makers  →  3.3. Workers

Open

3

A country is operating at point X on its production possibility curve (PPC). A drought significantly reduces agricultural output. Which point represents the new position?

1. The basic economic problem  →  1.4. Production possibility curve (PPC) diagrams

Open

4

A government needs to decide how much to fine firms for causing the external costs of air pollution in industrial areas. Which external cost would be the most difficult to measure in monetary terms?

1. The basic economic problem  →  1.1. The nature of the economic problem

3. Microeconomic decision makers  →  3.7. Firms’ costs, revenue and objectives

Open

5

What is an example of market failure?

2. The allocation of resources  →  2.10. Market failure

Open

6

The table illustrates the demand and supply for coffee in a market in Africa. price per kg ($) quantity demanded quantity supplied When the price rises from $20 to $30 per kg, what is the price elasticity of demand for coffee?

2. The allocation of resources  →  2.8. Price elasticity of supply (PES)

2. The allocation of resources  →  2.7. Price elasticity of demand (PED)

Open

7

Between 2005 and 2015 the number of late-night music clubs in the UK fell from 3144 to 1733. The causes were said to be the increase in the cost to clubs of planning regulations and the increase in alternative ways of meeting people on social media. How would the effect of these causes be shown...

2. The allocation of resources  →  2.3. Demand

2. The allocation of resources  →  2.6. Price changes

Open

8

A job offers employees piecework, commission, paid holidays and a company pension. Which are non-wage factors?

3. Microeconomic decision makers  →  3.3. Workers

Open

9

When will a trade union be most likely to succeed in achieving the aims of its members?

3. Microeconomic decision makers  →  3.4. Trade unions

Open

10

The typical pattern of income over a person’s whole lifetime is shown...

3. Microeconomic decision makers  →  3.2. Households

5. Economic development  →  5.1. Living standards

Open

11

When choosing an occupation people often consider things other than the wage-rate. What would not be a good match for the type of work that is desired?

3. Microeconomic decision makers  →  3.3. Workers

4. Government and the macroeconomy  →  4.7. Employment and unemployment

Open

12

Which is an internal diseconomy of scale?

3. Microeconomic decision makers  →  3.5. Firms

Open

13

What is not likely in an industry with many small firms?

3. Microeconomic decision makers  →  3.5. Firms

3. Microeconomic decision makers  →  3.8. Market structure

Open

14

A major computer company announced that its profits had fallen below the level predicted. What might have caused this?

3. Microeconomic decision makers  →  3.7. Firms’ costs, revenue and objectives

2. The allocation of resources  →  2.6. Price changes

Open

15

The diagram shows the fixed costs, variable costs and total costs of a firm. O costs output Q R S T At output Q, which distance represents the firm’s variable cost?

3. Microeconomic decision makers  →  3.7. Firms’ costs, revenue and objectives

Open

16

What, when increased, will help a government to reduce the rate of inflation?

4. Government and the macroeconomy  →  4.3. Fiscal policy

4. Government and the macroeconomy  →  4.8. Inflation and deflation

Open

17

An economy has a deficit on its balance of trade in manufactured goods. Which government policy will reduce this deficit?

4. Government and the macroeconomy  →  4.3. Fiscal policy

Open

18

The graph shows the percentage of income paid in taxation. Which line represents a proportional tax?

4. Government and the macroeconomy  →  4.3. Fiscal policy

Open

19

What is most likely to decrease when employment increases?

4. Government and the macroeconomy  →  4.7. Employment and unemployment

Open

20

Why is the Human Development Index (HDoften considered to be better than Gross Domestic Product (GDP) per head as a measure of living standards?

5. Economic development  →  5.1. Living standards

Open

21

An economy is predicted to grow at a rate of 3% during the next year. What is most likely to cause this growth?

4. Government and the macroeconomy  →  4.6. Economic growth

1. The basic economic problem  →  1.4. Production possibility curve (PPC) diagrams

Open

22

The diagrams show percentage employment in different sectors in two countries. primary secondary country X services percentage employed primary secondary country Y services percentage employed Which statement is correct when comparing country X and country Y?

3. Microeconomic decision makers  →  3.3. Workers

4. Government and the macroeconomy  →  4.7. Employment and unemployment

3. Microeconomic decision makers  →  3.5. Firms

Open

23

Which policy aims to maintain low inflation over a period of time?

4. Government and the macroeconomy  →  4.8. Inflation and deflation

4. Government and the macroeconomy  →  4.2. The macroeconomic aims of government

Open

24

What most accurately measures the international purchasing power of a currency?

6. International trade and globalisation  →  6.4. Current account of balance of payments

6. International trade and globalisation  →  6.3. Foreign exchange rates

Open

25

The charts show the population structure of a country in 1960 and 2015. male female age 85+ 80 – 84 millions 75 – 79 70 – 74 65 – 69 60 – 64 55 – 59 50 – 54 45 – 49 40 – 44 35 – 39 30 – 34 25 – 29 20 – 24 15 – 19 10 – 14 5 – 9 0 – 4 male female age 85+ 80 – 84 millions 75 – 79 70 – 74 65 – 69 60 – 64 55 – 59 50 – 54 45 – 49 40 – 44 35 – 39 30 – 34 25 – 29 20 – 24 15 – 19 10 – 14 5 – 9 0 – 4 What decreased between 1960 and 2015?

5. Economic development  →  5.3. Population

Open

26

The table gives information about four countries. Which country is likely to be most developed?

5. Economic development  →  5.1. Living standards

Open

27

What is a benefit of tariffs?

6. International trade and globalisation  →  6.2. Globalisation, free trade and protection

Open

28

What is a country said to have if the value of its exported goods exceeds the value of its imported goods?

6. International trade and globalisation  →  6.4. Current account of balance of payments

Open

29

An Argentine product initially sells in the US for $50 when the exchange rate between the two countries is 5 pesos to 1 dollar The exchange rate changes to 10 pesos to 1 dollar and the price of the product remains unchanged in Argentina. What will be the new price of the product in the US?

6. International trade and globalisation  →  6.3. Foreign exchange rates

2. The allocation of resources  →  2.6. Price changes

Open

30

The UK wants to increase exports to the US. What action will achieve this?

6. International trade and globalisation  →  6.3. Foreign exchange rates

6. International trade and globalisation  →  6.4. Current account of balance of payments

Open