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WorksheetsEconomics 1
Total questions: 11
Worksheet time: 6mins
An American family is choosing between four holiday destinations in Europe, each at the same price. The table shows the family’s order of preference for these holiday destinations.
holiday destination - order of preference
Barcelona 1st
London = 3rd
Paris 2nd
Venice = 3rd
If the family goes to Barcelona, what is the opportunity cost of this choice?
Barcelona
London and Venice
Paris
London, Paris and Venice
The diagram shows two production possibility curves for an economy. Which combination of movements correctly illustrates these changes in production?
A
B
C
D
Which statement is a positive statement?
The distribution of income and wealth in most western European countries is unequal.
The government ought to increase income tax on high earners.
There should be more legal rights given to workers to protect their status in the workplace.
Wages of those on low incomes should be increased.
What could not cause a shift in an individual’s demand curve for good Z?
a change in advertising expenditure on Z
a change in the individual’s income
a change in the individual’s tastes
a change in the price of Z
The diagram shows the market for sugar which is initially in equilibrium at a price of OP. A government then fixes a maximum price of OP1. What will happen as a result?
a reduction in farmers’ revenue equal to PRSP1
expenditure on sugar will be equal to PRMO
farmers’ revenue would be P1UNO
producer surplus will be P1SP2
The table shows a competitive market in equilibrium in two periods. What could explain the change from period 1 to period 2?
an increase in the price of a complement
an increase in the price of a substitute
the imposition of a minimum price of 60 cents by a government
the imposition of an indirect tax on suppliers
The diagrams show the initial demand curve D1 and supply curve S1 for steel in the European Union (EU). In 2018 European steel firms experienced rising energy prices. Which diagram shows the likely impact of this?
A
B
C
D
The market for wheat is in equilibrium at price P with supply at 40 million tonnes. Due to a drought in the growing season, supply falls to 20 million tonnes. Which immediate action should be taken to maintain the equilibrium price of P?
grant a subsidy to farmers equivalent to PP1
impose an indirect tax equivalent to PP2
plant more wheat to increase supplies to 40 million tonnes
use existing stocks of wheat to increase supplies by 20 million tonnes
What is used to calculate the price elasticity of demand?
A
B
C
D
After a series of poor harvests, a government imposes an effective maximum price on cereals. What would be a consequence of this policy?
Both rich and poor people would satisfy their demands equally.
Illegal buying and selling through a black market would be prevented.
Rationing would be necessary to ensure a fair distribution of cereals.
The market would fail to clear leaving a surplus of cereals.
A government wishes to increase the supply of houses. It pays a subsidy to brick manufacturers to increase supplies of bricks to S2. The diagram shows the supply of and demand for bricks. Which size of subsidy per unit is required to increase supply to S2?
OP3
P1P2
P1P3
P2P3
