OCR GCSE Economics paper 1 MCQ

Which of these is the best definition of economic growth?

• An increase in an economy's employment level

• An increase in an economy's population

• An increase in an economy's productive capacity

• A reduction in an economy's level of imports

Prices change to show where resources are needed. This process is called

• efficiency

• rationing

• signalling

• transmission of preferences

What is meant by unlimited wants?

• Goods which do not have an opportunity cost

• Resources which are essential for survival

• The ability to buy whatever is required

• The infinite desire for goods and services

Which of the following refers to the role of the consumer?

• Acts as the end-user of a good or service

• Acts to protect buyers of goods and services

• Can decide what goods and services to supply

• Can introduce regulations about goods and services

Which of the following is the best explanation of equilibrium price and quantity?

• Price is the interaction of demand and supply to set the quantity

• Price is unlikely to change given existing demand and supply conditions

• Quantity has the same percentage change as any price change

• Quantity is fixed in relation to changes in demand and supply movements

The table shows the cost of insurance for a car, depending on the age of the driver. Which of the following statements is correct?

• A 20-year-old driver pays twice as much as a 50-year-old driver

• A 30-year-old driver pays £500 less than a 20-year-old driver

• The smallest change in insurance payment is between the ages of 30 and 40

• The largest percentage change in insurance payment is between the ages of 40 and 50

As a result of its growth, a business can now afford to advertise on local radio. This is an example of which economy of scale?

• Financial

• Increased dimensions

• Marketing

• Purchasing

A village is over 10 miles away from the nearest two towns. The village shop sells bread. For someone living in the village wanting to buy bread, the shop is a

• competitor

• monopolist

• oligopolist

• specialist

Which of the diagrams shows a supply curve with a unitary elasticity of supply?

• W

• X

• Y

• Z

Which of the following is the best explanation of the difference between price and worth?

• Price is determined by the interaction of demand and supply whereas worth is how consumers indicate their choices

• Price is how resources are efficiently distributed whereas worth is the opportunity cost of using the resources

• Price is the cost of a product whereas worth is how that price is determined by the market

• Price is the sum of money needed to pay for a product whereas worth is how much someone values the product