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WorksheetsEcon IGCSE (B) 30 MCQ
Total questions: 30
Worksheet time: 15mins
All countries need to produce food.
Which type of agriculture would make the best use of the resources of developing and developed economies?
A
B
C
D
A farmer reduces the land used to grow wheat from 80 hectares to 60 hectares and increases the use of the land for growing potatoes from 80 to 100 hectares.
What is the opportunity cost of this change?
The output from 20 hectares used for growing potatoes.
The output from 20 hectares used for growing wheat.
The output from 60 hectares used for growing wheat.
The output from 80 hectares used for growing potatoes.
The diagram shows the change in an economy’s production possibility curve (PPC) from year 1 to year 2.
What might explain the change from year 1 to year 2?
Resources have moved from the production of services to the production of goods.
The number of workers unemployed in manufacturing has fallen.
The producers of services have introduced better technology.
The workers in the production of goods have become less efficient.
What can be found in a market economy?
externalities and monopolies
interest rates and public goods
public corporations and market prices
tax rates and commercial banks
A private sector firm is given a contract by the government to supply a country’s water.
Which government directive will minimise the risk of market failure?
allow the firm to ration water rather than meet demand
ensure the firm’s supply includes all areas which are expensive to service
insist that the firm aims to maximise profits
instruct the firm to provide water only to those who can pay for it
What is meant by the equilibrium price in the market for a good?
the average price paid by consumers
the price at which maximum profit is made
the price at which the producer breaks even
the price at which the supply and demand curves intersect
The table shows the effect of a change in the market price from $5 to $6 on the supply of mobile (cell) phones.
Which statement about the price elasticity of supply of mobile phones is correct?
Price elasticity of supply is 0.4.
Price elasticity of supply is 2.5.
Supply is perfectly elastic.
There is unit elasticity
What could discourage women from seeking employment?
More education and training are provided.
More flexible and part-time jobs are available.
There are fewer promotion opportunities for women.
There is a shift in employment to the services sector.
What would be least likely to act as a store of value during a period of rapid inflation?
cash
gold
property
shares
The table shows how three people (X, Y and Z) spend their income.
For these three people, what is the most likely order of income, from lowest income to highest income?
Y → X → Z
Y → Z → X
Z → X → Y
Z → Y → X
The table shows the weekly values of certain items for the average person in each group.
In which group does the average person save the most?
A
B
C
D
Which type of business is always in the public sector?
monopoly
multinational corporation
public corporation
public limited company
When will a firm maximise its profits?
when it excludes a rival supplier from the market
when it produces where average cost and average revenue are equal
when it sells as many products in as many different markets as it can
when the difference between total cost and total revenue is greatest
The table shows the costs of a firm.
What is the value of the firm’s fixed costs?
A
B
C
D
A firm’s average revenue is $10. It sells 2000 units.
What is the firm’s total revenue and the price of the product?
A
B
C
D
Which measure would a government take to reduce a current account deficit?
increase tariffs
increase value added tax
reduce income tax
reduce domestic subsidies
What is an example of an expansionary fiscal policy?
decreased budget deficit
higher interest rates
increased money supply
reduced tax rates
A government lowers interest rates to encourage more borrowing and spending by households to increase economic growth.
Why could this lead to a conflict with other government aims?
It could cause uncertainty and lead to lower demand
It could encourage more savings and lead to higher unemployment.
It could lead to lower prices of consumer goods and result in deflation.
It could stimulate consumer demand and lead to inflation.
Which policy would be most likely to reduce unemployment in the short run?
a programme of privatisation
a reduction in the standard rate of income tax
grants to firms to research new technology
removal of all restrictions on imports into the country
A country has the highest GDP per head in the world.
What is this information most likely to suggest about the country?
It has the world’s biggest economy.
It has the world’s fastest economic growth rate
It has the world’s greatest size of population.
It has the world’s highest standard of living
What is included in the Human Development Index (HDI) of a country?
level of net immigration
life expectancy at birth
population size
rate of population growth
What is an example of someone who lost their job because of structural unemployment?
Aneesha lost her job as an engineer when her firm had to make redundancies in a recession.
Jamie lost his job as an ice cream seller during the winter months when little ice cream was sold.
Sunjeev decided to stop working and claim benefits when the government increased unemployment benefits
Sunjit lost his job as a bank worker when the bank replaced his job with a new computer system.
An economy experienced deflation.
Which combination shows the likely outcome of this?
A
B
C
D
A developing country starts to show increases in economic growth.
What is most likely to occur?
a reduction in imports
a reduction in the number of doctors per capita
an increase in absolute poverty
an increase in incomes
A country’s minister for agriculture said
“the biggest challenge the country faces is to develop irrigation so that we are not at the mercy of the weather for crucial export earnings”.
Which type of country is this most likely to be?
developed, exporting manufactured goods
developed, exporting services
developing, exporting primary commodities
developing, exporting services
The table shows the birth rate and death rate for four countries for a given year.
If there is no migration, which country has the greatest rate of increase in population?
A
B
C
D
What usually decreases when there is a depreciation of a country’s foreign exchange rate?
the level of national debt
the level of trade protection
the price of exports
the price of imports
A country imposes tariffs and quotas on imported goods.
What will citizens of that country experience?
higher prices
higher unemployment
higher welfare
wider consumer choice
The table shows a country’s balance of payments that has no secondary income (current transfers).
What is the country’s current account balance?
a deficit of $60 million
a deficit of $160 million
a surplus of $20 million
a surplus of $760 million
Skin creams preventing sunburn made in the European Union (EU) are more effective than those made in the United States (US). US tourists stock up on the creams when visiting Europe. Such creams are banned from production in the US because of the chemicals in them. In 2013, negotiations began to remove this ban in order to allow production in the US.
How is this freer trade likely to affect manufacturers of skin creams in the US and the EU?
A
B
C
D
