Michael-Santoso/full_dataset · Datasets at Hugging Face

Question: Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-paid, unskilled workers to medicines produced by highly-trained technicians. What policies would enable Bangladesh to achieve this switch in employment and production? A demolish clothes factories and decrease imports B encourage immigration of foreign labour and introduce tariffs on clothing C invest in education and purchase new machines D substitute labour for machines and encourage emigration of workers from Bangladesh Answer: C

Question: What is not an important step in the construction of an accurate Retail Price Index? A choosing a base year with normal economic conditions B comparing price rises with those of international competitors C sampling prices from a wide range of retail outlets D selecting a typical basket of goods consumed by the average citizen Answer: B

Question: What might cause a decline in economic output? A a decrease in income tax B a decrease in sales tax C an increase in company investment D an increase in unemployment Answer: D

Question: A closed economy has both a private sector and a public sector. Gross Domestic Product (GDP) consists of total consumer expenditure plus gross investment plus A the value of exports. B the value of exports minus the value of imports. C total government expenditure. D total government expenditure minus total taxation. Answer: C

Question: What is most likely to cause an immediate decrease in the size of the working population? A a fall in the average size of families B a fall in the birth rate C a reduction in the age of retirement D an increase in net immigration Answer: C

Question: What is least likely to be found in a typical developing country? A Ill-health affects many of the population. B Many workers are highly skilled. C Production is labour-intensive. D There is an unequal distribution of income and wealth. Answer: B

Question: Which statement about economic development is correct? A A country needs more than a high GDP to be considered developed. B A country which has rich reserves of raw materials is classed as developed. C A country will have no people living in poverty when it is developed. D A country with a trade surplus is considered to be developed. Answer: A

Question: Which terms summarise the nature of the economic problem? A finite resources and limited wants B finite resources and unlimited wants C infinite resources and limited wants D infinite resources and unlimited wants Answer: B

Question: Which statement about the factors of production is correct? A A river from which a company draws water is called land. B Raising finance for a company is called capital. C Supervisors employed in a company are called enterprise. D The owner of a company is called labour. Answer: A

Question: Which economic change would increase the problem of scarcity? A a decrease in fish stocks B a discovery of a new oil field C an increase in labour productivity D a reduction in waste Answer: A

Question: The government of a country with a rapidly increasing population decides to switch resources from investment to increased subsidies to farmers. What is the opportunity cost of this decision? A the profit earned by farmers B the rent of the land on which food is grown C the reduction in investment D the wages of the farm workers Answer: C

Question: What is a function of a commercial bank? A acting as the lender of last resort B deciding what is a legal tender C determining monetary policy D providing overdrafts Answer: D

Question: A person is most likely to save more when there is an increase in a country’s A exchange rate. B inflation rate. C interest rates. D money supply. Answer: C

Question: One of the functions of money is to act as a measure of value. What does this mean? A Money allows people to borrow and lend. B Money allows people to save their surplus income. C Money is used to buy goods and services. D Money is used to compare the worth of different goods and services. Answer: D

Question: What is a function of a trade union? A to negotiate workers’ contracts B to promote workers to more responsible jobs C to recruit workers for the firm D to supervise the workers in the firm Answer: A

Question: What is an example of occupational mobility of labour? A A Japanese car manufacturer locates in England. B A nurse returns to work after her children have grown up. C A student takes an evening job in a restaurant. D Farm workers retrain as call-centre workers. Answer: D

Question: In August 2008, Infosys, an Indian information technology company, bought Axon, a UK information technology company. Which type of integration is this? A conglomerate B horizontal C vertical backwards D vertical forwards Answer: B

Question: What is correct about a monopoly? A It may benefit from economies of scale. B It must be privately not state owned. C Its costs are always higher than those of a firm in perfect competition. D It sells only one product. Answer: A

Question: Barilla, an Italian company, is the world’s largest pasta maker. It also produces bread. In 2006 its bread production contributed $1.5 billion (bn) to its total revenue of $5.1 bn. Overall profit was $0.6 bn. What was the total cost to Barilla of producing pasta and bread in 2006? A $2.1 bn B $3.0 bn C $3.6 bn D $4.5 bn Answer: D

Question: A firm which sells its product for $6 has the following total costs. output (units) 0 10 20 30 total costs ($) 40 100 120 150 Which statement is correct? A Average cost is lowest when 10 units are produced. B The firm breaks even when 20 units are sold. C The firm has no fixed costs. D Total variable costs fall continuously over these outputs. Answer: B

Question: What is a direct tax? A a tax on electricity B a tax on imported goods C a tax on services D a tax on income and wealth Answer: D

Question: A government achieves a high rate of economic growth. How may this conflict with other government aims? A It may increase government income. B It may increase incomes for the lower paid. C It may increase the supply of exports. D It may increase the volume of imports. Answer: D

Question: The directors of a firm have to discuss the following topics. Which topic is least likely to be directly affected by the government’s influence on the firm? A health and safety laws B the interest it pays on borrowed money C the minimum wage it must pay its workers D the replacement of the director of finance Answer: D

Question: Between 2002 and 2007, approximately 18 million Latin American households moved out of poverty. Which change in the region is most likely to have caused this fall in poverty? A an increase in economic growth B an increase in inflation C a reduction in employment D a reduction in exports Answer: A

Question: The retail price index of a country rose during a year from 200 to 240. What was the annual rate of inflation? A 20 % B 40 % C 240 % Answer: A

Question: 0 % D 440 % 24 What name is given to the type of unemployment that occurs while people search for new jobs? A cyclical B frictional C residual D structural Answer: B

Question: Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A It includes international trade. B It includes more measures of living standards. C It is measured in money terms. D It is more directly linked to economic growth. Answer: B

Question: Gross Domestic Product (GDP) per capita is commonly used as an indicator of the comparative level of development in different countries. What does not lead to difficulties when using this as a comparison between countries? A different climatic conditions B different international exchange rates C different population growth rates D different rates of inflation Answer: C

Question: India has a more evenly distributed income than China but a greater proportion of its population living on less than $1 a day. What can be concluded from this statement? A China has a smaller proportion of very rich people. B India has a greater proportion of poor people. C Most of the population of India live on $1 a day. D The average income in China is higher than that in India. Answer: B

Question: What is likely to happen in a developing country as it becomes more developed? A A lower percentage of people will go to university. B Average life expectancy will rise. C The rate of population growth will increase. D The tertiary sector will decline in importance. Answer: B

Question: There was an increase in the value of the United States (US) dollar against the South African Rand. What is a result of this? A an increase in the number of exports from the US to South Africa B an increase in the number of imports to the US from South Africa C fewer people from the US spend holidays in South Africa D more people from South Africa spend holidays in the US Answer: B

Question: Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports into its country D subsidising job creation in rural areas BLANK PAGE BLANK PAGE Answer: C

Question: Which statement about the factors of production is correct? A A river from which a company draws water is called land. B Raising finance for a company is called capital. C Supervisors employed in a company are called enterprise. D The owner of a company is called labour. Answer: A

Question: Which terms summarise the nature of the economic problem? A finite resources and limited wants B finite resources and unlimited wants C infinite resources and limited wants D infinite resources and unlimited wants Answer: B

Question: The government of a country with a rapidly increasing population decides to switch resources from investment to increased subsidies to farmers. What is the opportunity cost of this decision? A the profit earned by farmers B the rent of the land on which food is grown C the reduction in investment D the wages of the farm workers Answer: C

Question: Which economic change would increase the problem of scarcity? A a decrease in fish stocks B a discovery of a new oil field C an increase in labour productivity D a reduction in waste Answer: A

Question: What is a function of a commercial bank? A acting as the lender of last resort B deciding what is a legal tender C determining monetary policy D providing overdrafts Answer: D

Question: 20 30 4 2 price ($) quantity (units) S What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2 10 What is an example of occupational mobility of labour? A A Japanese car manufacturer locates in England. B A nurse returns to work after her children have grown up. C A student takes an evening job in a restaurant. D Farm workers retrain as call-centre workers. Answer: D

Question: A person is most likely to save more when there is an increase in a country’s A exchange rate. B inflation rate. C interest rates. D money supply. Answer: C

Question: One of the functions of money is to act as a measure of value. What does this mean? A Money allows people to borrow and lend. B Money allows people to save their surplus income. C Money is used to buy goods and services. D Money is used to compare the worth of different goods and services. Answer: D

Question: What is a function of a trade union? A to negotiate workers’ contracts B to promote workers to more responsible jobs C to recruit workers for the firm D to supervise the workers in the firm Answer: A

Question: A firm which sells its product for $6 has the following total costs. output (units) 0 10 20 30 total costs ($) 40 100 120 Answer: B

Question: 0 Which statement is correct? A Average cost is lowest when 10 units are produced. B The firm breaks even when 20 units are sold. C The firm has no fixed costs. D Total variable costs fall continuously over these outputs. 15 In August 2008, Infosys, an Indian information technology company, bought Axon, a UK information technology company. Which type of integration is this? A conglomerate B horizontal C vertical backwards D vertical forwards Answer: B

Question: Barilla, an Italian company, is the world’s largest pasta maker. It also produces bread. In 2006 its bread production contributed $1.5 billion (bn) to its total revenue of $5.1 bn. Overall profit was $0.6 bn. What was the total cost to Barilla of producing pasta and bread in 2006? A $2.1 bn B $3.0 bn C $3.6 bn D $4.5 bn Answer: D

Question: What is correct about a monopoly? A It may benefit from economies of scale. B It must be privately not state owned. C Its costs are always higher than those of a firm in perfect competition. D It sells only one product. Answer: A

Question: The directors of a firm have to discuss the following topics. Which topic is least likely to be directly affected by the government’s influence on the firm? A health and safety laws B the interest it pays on borrowed money C the minimum wage it must pay its workers D the replacement of the director of finance Answer: D

Question: What is a direct tax? A a tax on electricity B a tax on imported goods C a tax on services D a tax on income and wealth Answer: D

Question: A government achieves a high rate of economic growth. How may this conflict with other government aims? A It may increase government income. B It may increase incomes for the lower paid. C It may increase the supply of exports. D It may increase the volume of imports. Answer: D

Question: What name is given to the type of unemployment that occurs while people search for new jobs? A cyclical B frictional C residual D structural Answer: B

Question: Between 2002 and 2007, approximately 18 million Latin American households moved out of poverty. Which change in the region is most likely to have caused this fall in poverty? A an increase in economic growth B an increase in inflation C a reduction in employment D a reduction in exports Answer: A

Question: The retail price index of a country rose during a year from 200 to 240. What was the annual rate of inflation? A 20 % B 40 % C 240 % D 440 % Answer: A

Question: India has a more evenly distributed income than China but a greater proportion of its population living on less than $1 a day. What can be concluded from this statement? A China has a smaller proportion of very rich people. B India has a greater proportion of poor people. C Most of the population of India live on $1 a day. D The average income in China is higher than that in India. Answer: B

Question: Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A It includes international trade. B It includes more measures of living standards. C It is measured in money terms. D It is more directly linked to economic growth. Answer: B

Question: Gross Domestic Product (GDP) per capita is commonly used as an indicator of the comparative level of development in different countries. What does not lead to difficulties when using this as a comparison between countries? A different climatic conditions B different international exchange rates C different population growth rates D different rates of inflation Answer: C

Question: Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports into its country D subsidising job creation in rural areas Answer: C

Question: What is likely to happen in a developing country as it becomes more developed? A A lower percentage of people will go to university. B Average life expectancy will rise. C The rate of population growth will increase. D The tertiary sector will decline in importance. Answer: B

Question: There was an increase in the value of the United States (US) dollar against the South African Rand. What is a result of this? A an increase in the number of exports from the US to South Africa B an increase in the number of imports to the US from South Africa C fewer people from the US spend holidays in South Africa D more people from South Africa spend holidays in the US BLANK PAGE BLANK PAGE Answer: B

Question: What is meant by the economic problem? A how to achieve efficiency with the existence of fixed resources and limited wants B how to allocate resources between public and private sectors C how to balance unlimited wants against finite resources D how to decide which methods to use to exploit all resources Answer: C

Question: Each of the factors of production earns an income. What are the incomes for land and capital? land capital A rent interest B rent profit C wages interest D wages profit Answer: A

Question: A firm decides to stop manufacturing ovens and to produce washing machines instead. What is the opportunity cost to the firm? A the additional washing machines produced B the cost of producing ovens C the cost of producing washing machines D the loss of the production of ovens Answer: D

Question: What is an advantage of the market economic system? A It aims for equality of income. B It ensures the provision of defence and law and order. C It gives an incentive to produce. D It reduces pollution and congestion. Answer: C

Question: In a country where the demand for petrol (gas) is price-inelastic, the incidence of any increase in petrol tax will be mainly on A the company that refines the oil. B the motorist who buys the petrol. C the petrol station that sells the petrol. D the wholesale company that stores the petrol. Answer: B

Question: What is an example of market failure? A a growth of competition B an existence of scarcity C a spread of pollution D a surplus of production in the short-term Answer: C

Question: Which action by the operators of an airport directly reduces external costs? A the stopping of night flights B the building of a new runway C the payment of a productivity bonus D the reduction of charges for landing aircraft Answer: A

Question: What may cause an individual to save a higher proportion of their income? A a belief that the price of goods will rise in the future B a fall in the rate of interest paid by the country’s banks C a fear that income will fall in the future D a rise in the individual’s wish to enjoy higher consumption immediately Answer: C

Question: A person wishes to buy shares in order to make a long-term profit, but wants as little risk of short-term loss as possible. Which type of share is most likely to meet these wishes? A a share in a coffee growing company B a share in a fashion house C a share in a high-tech electronics company D a share in a supermarket chain Answer: D

Question: Which statement about a country’s banks is correct? A Commercial banks hold the financial accounts of the government. B Commercial banks settle debts by clearing customers’ cheques. C The central bank sets the government’s tax and spending policies. D The central bank supplies foreign currency to members of the public. Answer: B

Question: Why might factory workers have higher wage rates than agricultural workers? A Factory workers are in greater supply. B Factory workers face fewer risks of accidents. C Factory workers have cleaner working conditions. D Factory workers use more productive equipment. Answer: D

Question: A musician has a choice of playing for an orchestra in either England or Germany. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? Incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower Answer: D

Question: A major computer company announced that its profits had fallen below the level predicted. What might have caused this? A increased advertising costs that greatly improved sales B low prices that made the company’s product competitive C new technology that reduced costs D reduced sales and low prices Answer: D

Question: A firm raised the price of its product from $10 to $15 and as a result its sales fell from 200 units to 150 units. What happened to its average revenue and total revenue? average revenue total revenue A decreased decreased B decreased increased C increased decreased D increased increased Answer: D

Question: Which change must occur when a firm starts to experience diseconomies of scale? A Average costs begin to rise. B Employees are made redundant. C Profits turn into losses. D Variable costs become fixed. Answer: A

Question: If a firm increases its output in the short run, what will happen to its average fixed cost (AFC)? A AFC will decrease continually. B AFC will equal zero. C AFC will increase then decrease. D AFC will increase continually. Answer: A

Question: Cathay Pacific, Hong Kong’s largest airline, flies to a number of countries. Shares in the firm are owned by both individuals and other firms in a number of countries. The shares are traded on the Hong Kong Stock Exchange. Which type of business organisation is Cathay Pacific? A a partnership B a private limited company C a public corporation D a public limited company Answer: D

Question: The central bank of Mexico set its rate of interest to try to keep the rise in the price level to only 3 %. Which government aim was it directly trying to achieve? A balance of payments equilibrium B economic growth C full employment D low inflation Answer: D

Question: When is a direct tax described as progressive? A when the government changes the basic rate of tax in each budget B when the government taxes companies rather than individuals C when the tax takes a larger proportion of earnings as earnings increase D when the tax takes a smaller proportion of earnings as earnings increase Answer: C

Question: In 2008, the government of Argentina imposed a tax on exports of wheat and soya beans. What was the most likely aim of this tax? A to increase agricultural output B to increase exports C to reduce a budget surplus D to reduce the rise in domestic food prices Answer: D

Question: During 2009 some governments adopted policies to try to end the recession in their country and increase economic growth. Which combination of policies is most likely to achieve this? A lower taxes and decrease government spending B lower taxes and increase government spending C raise taxes and decrease government spending D raise taxes and increase government spending Answer: B

Question: Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It does not take account of population size. C It is based on a sample ‘basket of goods’. D It only compares export prices with import prices. Answer: B

Question: What is likely to happen as a developing country becomes more developed? A A higher percentage of children will attend school. B Infant mortality will rise. C Life expectancy will fall. D The agricultural sector will increase in importance. Answer: A

Question: Many developed countries are faced with an ageing population. What is the likely result of this? A a reduced dependency ratio B increased mobility of labour C increased spending on medical care D reduced tax levels Answer: C

Question: A government may use customs barriers to restrict free trade. What is an economic reason for doing this? A to discourage the production of strategic goods B to improve the balance of trade C to increase a balance of payments deficit D to make imports cheaper BLANK PAGE BLANK PAGE Answer: B