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Worksheets1. IGCSE ECONS MCQ past papers
Total questions: 20
Worksheet time: 10mins
What is an example of the purchase of a consumer good?
A farm owner buys a television
A farm owner buys additional land.
A farm owner buys fertiliser for their crops.
A farm owner buys some farming equipment.
What is the function of the factors of production in an economy?
to make goods and services to fulfil wants and needs
to provide an even distribution of income
to provide tax income for the government
to reduce the existence of external costs
Which topic is included in microeconomics?
inflation
economic growth
elasticity of demand
the balance of payments
What aspect of demerit goods means they are overproduced?
clear product information
high external costs
high product taxes
low customer demand
Lithium is an essential metal for the production of electric cars. Following a 10% increase in the price of lithium, supplies increase by 15%. This led to a 5% increase in the price of electric cars.
What is the price elasticity of supply (PES) for lithium?
0.33
0.66
1.50
2.0
The wage of labour in a firm increases.
What is the most likely effect on the production process?
Capital replaces labour immediately
Capital replaces labour in the long run.
Labour replaces capital immediately.
Labour replaces capital in the long run.
What is most likely to lead to an improvement in labour productivity in an industry?
an increase in capital investment
an increase in income tax rates
an increase in the demand for the industry’s product
an increase in the number of firms in the industry
How is a government most likely to prevent the growth of monopolies?
by encouraging mergers in the private sector
by establishing nationalised industries
by promoting the benefits of economies of scale
by reducing barriers to entry into an industry
What is not included in public expenditure?
capital spending by firms
interest payments on government borrowing
investment in defence by the central government
subsidies to bus companies from local government
When is the budget described as balanced?
when direct taxes and indirect taxes are equal
when exports and imports are equal
when government spending and government revenue are equal
when the demand for money and the supply of money are equal
The government wishes to increase economic growth in its economy.
What would not be likely to achieve this aim?
The central bank encourages bank lending.
The central bank lowers interest rates.
The government increases sales tax (VAT).
The government subsidises new industries.
The government redistributes income more evenly.
What is most likely to increase?
the incentive to work
the level of savings
the need for welfare payments
the rate of inflation
What may directly cause economic growth?
higher imports
higher levels of resources
higher taxation
higher unemployment
What distinguishes a more developed country from a less developed country?
Inflation rates are higher in the more developed country
Interest rates are higher in the more developed country.
Natural resources are higher in the more developed country.
Real incomes are higher in the more developed country
An additional 700 000 UK children and pensioners fell into relative poverty between 2013 and 2017.
What might be the reason for this?
Direct taxes had increased, and indirect taxes had fallen.
Real gross domestic product was rising faster than the population.
The death rate was exceeding the birth rate.
The real value of government welfare benefits had fallen.
What is a quota in international trade?
a government grant to encourage production
an administrative and technical barrier
a limit on the quantity of imports
a tax on imports
Due to war, some people are living in absolute poverty.
What is the main indicator of absolute poverty for these people?
dependence on aid for medical treatment
lack of transport to escape abroad
living in tents in temporary camps
receiving insufficient food for basic nutrition
Why are governments responsible for the defence of the country?
It is impossible to charge a price for defence.
It prevents individual citizens having access to weapons.
Only governments can manufacture weapons.
Providing defence is very expensive.
A government increased revenue by increasing taxes on firms.
Which tax did it increase?
inheritance tax
profits tax
sales tax
value added tax
When do economies of scale take place?
in the short run
if variable factors become fixed
when all factors of production are fixed
when all factors of production are variable
