AQA Economics GCSE

Which of the following is the central purpose of economic activity?

• Maximising the profits of firms

• Reducing inequalities in income and wealth

• Producing goods and services to satisfy needs and wants

• Reducing the power of monopolies

Which of the following correctly shows the rewards to the four factors of production?

• A

• B

• C

• D

Which of the following activities would be included in the primary sector of the economy?

• Catering

• Farming

• Hairdressing

• Housebuilding

0 4 Which of the following would cause the demand curve for cars to shift to the right?

• A fall in the size of the population

• A reduction in the price of rail travel

• A rise in the price of petrol

• An increase in consumer incomes

What is the equilibrium price after a rise in supply of 10 units at all prices?

• £4

• £5

• £6

• £7

Which of the following is the most likely cause of a rise in price of lemons?

• A reduction in the number of firms supplying lemons

• A reduction in the wages paid to lemon growers

• An increase in productivity of lemon growers

• A fall in demand for lemons

Which of the following are characteristics of a competitive market?

• Large number of firms, low barriers to entry

• Small number of firms, low barriers to entry

• Large number of firms, high barriers to entry

• Small number of firms, high barriers to entry

Which of the following would lead to a market failure?

• An increase in the price of a scarce raw material

• A fall in demand for an unpopular product

• A factory generating air pollution

• The government increasing taxes

Explain one possible effect on the equilibrium market price of cars of a fall in box consumer incomes.

Explain one opportunity cost a government might face when making box economic decisions.

(Give example, not explanation)