Economics IGCSE Section 3 Review

Which of the following is NOT a function of money?

• Medium of exchange

• Store of value

• Unit of account

• Production of goods

Which characteristic of money ensures it can be easily carried and transferred?

• Durability

• Divisibility

• Recognizability

• Portability

Which institution is primarily responsible for implementing a country's monetary policy?

• Commercial bank

• Investment bank

• Finance ministry

• Central bank

Which factor is most likely to increase household spending?

• A rise in interest rates

• A decrease in consumer confidence

• A decrease in disposable income

• An increase in disposable income

Why might older people save less than middle-aged people?

• They have higher incomes

• They are saving for retirement

• They have large expenses for children

• They are using their savings during retirement

Which of the following is a reason why households might choose to borrow money?

• High interest rates

• Economic uncertainty

• Strict lending policies

• Easy availability of loans

Which of the following is a non-wage factor that might influence a worker's choice of occupation?

• Salary

• Overtime pay

• Bonus payments

• Working conditions

What is meant by "division of labor"?

• Workers receive different wages

• Workers are divided by age

• Workers work fewer hours

• Workers specialize in particular tasks

Which of the following is most likely to cause an increase in the demand for labor?

• A decrease in the firm's product demand

• An increase in wage rates

• A decrease in worker productivity

• An increase in the demand for the firm's product

Which of the following is a function of a trade union?

• Setting government policies

• Reducing company profits

• Dismissing employees

• Representing members in negotiations with employers