Economic Sectors of the UK Economy

Which of the following is a true statement about the economic sectors of the UK economy? [1 mark]

• The manufacturing sector is the smallest sector.

• The primary sector is the largest sector.

• The services sector is the largest sector.

• The tertiary sector includes mining.

Which of the following would NOT be classed as a factor of production?

• A bank account

• A furniture shop

• A second-hand tractor

• A teacher of History

Which of the following could be a disadvantage of specialisation to a firm? [1 mark]

• Increased competitiveness

• Increased cost of training workers

• Increased productivity of workers

• Reduced unit costs

Which of the following are examples of a factor market and a product market?

• Chocolate bars / Computer games

• Accountants / Traffic wardens

• Commercial property / Soft drinks

• Foreign currency / New businesses

Which of the following is a reason for diseconomies of scale? [1 mark]

• Cheaper finance available to larger firms

• More layers of management in larger firms

• Spreading advertising costs over a greater output in larger firms

• The increased purchasing ability of larger firms

Which of the following would lead to a rightwards shift of the demand curve for paint? [1 mark]

• A decrease in the price of paint

• An increase in demand for household decoration

• An increase in the number of firms producing paint

• An increase in the price of paintbrushes

Which one of the following is most likely to be a fixed cost for a business? [1 mark]

• Heating

• Packaging

• Raw materials

• Wages

Which of the following products has the most price inelastic supply? [1 mark]

• Crude oil

• Potatoes

• Strawberries

• Wheat

Which of the following are most likely to be complementary goods? [1 mark]

• A bucket and spade

• A train ticket and motor fuel

• Computer games and board games

• Tea and coffee

A clothes shop records the following T-shirt sales over a a 2-week period: What is the average revenue of the clothes shop? [1 mark]

• £10

• £12

• £14

• £16