WorksheetsEcons IGCSE (C) 30 MCQs (Nov 2017 - 11)
Total questions: 30
Worksheet time: 15mins
An oil company announced in 2015 that it was starting its drilling operations for oil deposits in the Arctic Ocean.
What will be the effect of this?
to increase the supply of raw materials
to reduce the level of technology available
to solve the economic problem
to worsen resource allocation
A self-employed fortune teller earns a living by reading the palms of people’s hands.
Which factors of production are essential to this activity?
capital and enterprise
enterprise and labour
labour and land
land and capital
A country is operating at point X on its production possibility curve (PPC). A drought significantly reduces agricultural output.
Which point represents the new position?
A
B
C
D
A government needs to decide how much to fine firms for causing the external costs of air pollution in industrial areas.
Which external cost would be the most difficult to measure in monetary terms?
the discomfort associated with breathing
the expenditure on additional healthcare
the loss of earnings due to illness
the medical research into respiratory disease
What is an example of market failure?
city centre congestion
low economic growth
rising prices
trade deficits
The table illustrates the demand and supply for coffee in a market in Africa.
When the price rises from $20 to $30 per kg, what is the price elasticity of demand for coffee?
0.2
0.5
2.0
5.0
Between 2005 and 2015 the number of late-night music clubs in the UK fell from 3144 to 1733. The causes were said to be the increase in the cost to clubs of planning regulations and the increase in alternative ways of meeting people on social media.
How would the effect of these causes be shown on a demand and supply diagram for entrance to late-night music clubs?
A
B
C
D
A job offers employees piecework, commission, paid holidays and a company pension.
Which are non-wage factors?
commission and company pension
company pension and paid holidays
paid holidays and piecework
piecework and commission
When will a trade union be most likely to succeed in achieving the aims of its members?
when firms are trying to cut costs of production
when the rate of unemployment in the country is high
when trade union membership in the industry is compulsory
when workers are unskilled
The typical pattern of income over a person’s whole lifetime is shown by which diagram?
A
B
C
D
When choosing an occupation people often consider things other than the wage-rate.
What would not be a good match for the type of work that is desired?
A
B
C
D
Which is an internal diseconomy of scale?
a lack of communication in a firm
a reduction of cost by buying in bulk
a shortage of skilled labour in an area
traffic congestion in a particular area
What is not likely in an industry with many small firms?
high capital costs
high level of competition
low barriers to entry
low research expenditure
A major computer company announced that its profits had fallen below the level predicted.
What might have caused this?
increased advertising costs that greatly improved sales
low prices that made the company’s product competitive
new technology that reduced costs
reduced sales and low prices
The diagram shows the fixed costs, variable costs and total costs of a firm.
At output Q, which distance represents the firm’s variable cost?
QR
QT
RT
ST
What, when increased, will help a government to reduce the rate of inflation?
budget deficit
consumer spending
income tax
pensions
An economy has a deficit on its balance of trade in manufactured goods.
Which government policy will reduce this deficit?
a decrease in subsidies paid to local manufacturers
an increase in interest rates
an increase in sales tax on locally manufactured goods
an introduction of import duties on manufactured goods
The graph shows the percentage of income paid in taxation.
Which line represents a proportional tax?
A
B
C
D
What is most likely to decrease when employment increases?
economic growth
government welfare payments
the price level
the standard of living
Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living standards?
GDP per head excludes economic growth.
GDP per head ignores population growth.
HDI includes more than the production of goods and services.
HDI is calculated by the national government.
An economy is predicted to grow at a rate of 3% during the next year.
What is most likely to cause this growth?
an increase in expenditure
an increase in interest rates
an increase in sales (goods and services) tax
an increase in the government’s budget surplus
The diagrams show percentage employment in different sectors in two countries.
Which statement is correct when comparing country X and country Y?
Country X employs more workers in secondary industry than country Y.
Country X produces more primary output than country Y.
Country Y is more developed than country X.
Country Y produces more secondary output than country X.
Which policy aims to maintain low inflation over a period of time?
imposing a minimum wage to be paid to workers
reducing interest rates to encourage borrowing
restricting the supply of money through the central bank
writing off the debts of low-income countries
What most accurately measures the international purchasing power of a currency?
the balance of payments
the exchange rate
the gross domestic product
the rate of inflation
The charts show the population structure of a country in 1960 and 2015.
What decreased between 1960 and 2015?
average age
number of people below 15
number of people over 60
total population
The table gives information about four countries.
Which country is likely to be most developed?
A
B
C
D
What is a benefit of tariffs?
increased choice
increased government revenue
more competition
more trade
What is a country said to have if the value of its exported goods exceeds the value of its imported goods?
a surplus on its balance of payments
a surplus on its balance of trade
a surplus on its capital account
a surplus on its current account
An Argentine product initially sells in the US for $50 when the exchange rate between the two countries is 5 pesos to 1 dollar
The exchange rate changes to 10 pesos to 1 dollar and the price of the product remains unchanged in Argentina.
What will be the new price of the product in the US?
$5
$25
$100
$500
The UK wants to increase exports to the US.
What action will achieve this?
borrowing US dollars from international banks
devaluing UK pounds against the US dollar
placing a quota on imports from the US
selling US dollars to buy UK pounds
