Aqa
, SECTION A
Write your answer to each question in the box provided.
1 Which of these contains all the four factors of production?
A Capital, enterprise, labour, land
B Capital, labour, profit, rent
C Enterprise, interest, land, wages
D Interest, profit, rent, wages
Your answer [1]
2 What is the income elasticity of demand if a 10% increase in consumer income
leads to a 40% decrease in quantity demanded?
A –4.00
B –0.25
C +0.25
D +4.00
Your answer [1]
3 Which of these is an example of a normative statement?
A Taxes on cigarettes provide the government with tax revenue
B The government should raise taxes even higher on cigarettes
C The tax on cigarettes accounts for 80% of the price of cigarettes
D VAT is one of the taxes charged on cigarettes
Your answer [1]
4 Opportunity cost is defined as the value of:
A all alternative goods foregone
B the cost of other goods and services
C the cost imposed on a third party
D the next best alternative foregone
Your answer [1]
,5 The diagrams show the relationship between price and quantity supplied of a product.
Which supply curve shows unit price elasticity of supply along the curve?
A Price
S
Quantity supplied
B Price
S
Quantity supplied
C Price
S
Quantity supplied
D Price
S
Quantity supplied
Your answer [1]
, 6 Which item is most likely to be used as a medium of exchange in the UK?
A A fifty pound bank note
B A gold wedding ring
C A government bond
D A savings account
Your answer [1]
7 The table shows the quantity demanded and quantity supplied of a product at different
prices.
Price Quantity Quantit
Demande y
d Supplie
d
£10 100 20
£15 80 30
£20 75 50
£25 60 60
£30 40 80
At the equilibrium price, what is the total revenue?
A £1000
B £1200
C £1500
D £2400
Your answer [1]
8 Which of these is a cause of market failure?
A Positive externalities
B Positive income elasticity of demand
C Positive price elasticity of supply
D Positive private costs
Your answer [1]
9 Which of these would lead to a negative externality?
A A new firm which creates jobs for local people
B A new firm which processes coal, releasing carbon emissions
C Information on the effects of smoking cigarettes
D Subsidy for solar-powered electricity
, SECTION A
Write your answer to each question in the box provided.
1 Which of these contains all the four factors of production?
A Capital, enterprise, labour, land
B Capital, labour, profit, rent
C Enterprise, interest, land, wages
D Interest, profit, rent, wages
Your answer [1]
2 What is the income elasticity of demand if a 10% increase in consumer income
leads to a 40% decrease in quantity demanded?
A –4.00
B –0.25
C +0.25
D +4.00
Your answer [1]
3 Which of these is an example of a normative statement?
A Taxes on cigarettes provide the government with tax revenue
B The government should raise taxes even higher on cigarettes
C The tax on cigarettes accounts for 80% of the price of cigarettes
D VAT is one of the taxes charged on cigarettes
Your answer [1]
4 Opportunity cost is defined as the value of:
A all alternative goods foregone
B the cost of other goods and services
C the cost imposed on a third party
D the next best alternative foregone
Your answer [1]
,5 The diagrams show the relationship between price and quantity supplied of a product.
Which supply curve shows unit price elasticity of supply along the curve?
A Price
S
Quantity supplied
B Price
S
Quantity supplied
C Price
S
Quantity supplied
D Price
S
Quantity supplied
Your answer [1]
, 6 Which item is most likely to be used as a medium of exchange in the UK?
A A fifty pound bank note
B A gold wedding ring
C A government bond
D A savings account
Your answer [1]
7 The table shows the quantity demanded and quantity supplied of a product at different
prices.
Price Quantity Quantit
Demande y
d Supplie
d
£10 100 20
£15 80 30
£20 75 50
£25 60 60
£30 40 80
At the equilibrium price, what is the total revenue?
A £1000
B £1200
C £1500
D £2400
Your answer [1]
8 Which of these is a cause of market failure?
A Positive externalities
B Positive income elasticity of demand
C Positive price elasticity of supply
D Positive private costs
Your answer [1]
9 Which of these would lead to a negative externality?
A A new firm which creates jobs for local people
B A new firm which processes coal, releasing carbon emissions
C Information on the effects of smoking cigarettes
D Subsidy for solar-powered electricity
