Académique Documents
Professionnel Documents
Culture Documents
1 The diagram shows that when a tax of $2 on a good raises the supply curve from S 1 to S2, the
price to the consumer rises from $4 to $5.
S2 S
1
price 5
$ 4
3
D
0
75 100
quantity
6 In 2008, the world’s largest metal mining company, BHP, increased its profits by
A exchange rate.
B inflation rate.
C interest rates.
D money supply.
11 South African companies are planning to undertake major investment in Zimbabwe in order to
mine platinum.
If this investment occurs, what would happen in the short term to the supply of platinum, the price
of platinum and the profits of the companies?
13 Why might factory workers have higher wage rates than agricultural workers?
Which policy measure would have been most likely to achieve this
objective?
15 Which motive is most likely to increase the wish to open a savings account?
A employment falls.
B interest rates fall.
C interest rates rise.
D tax rates rise.
17 The ways of making and receiving payments continue to develop. As well as cash, debit cards
and credit cards, mobile (cell) phones are now being used to make payments.
Which method of paying for products provides no information to sellers about their customers?
A Cash
B debit cards
C credit cards
D mobile (cell) phones
19 What might be an advantage to a trade union when arguing for an increase in its members’ pay?
20 In 2008–2009 the central bank of a developed country reduced interest rates from 5 % to 0.5
% per year to stimulate the economy.
How would this policy have affected the amount saved and the cost of borrowing by individuals?
A decrease decrease
B decrease increase
C increase decrease
D increase increase
21 For anything to be used as money, it must be
A a fixed value.
B in fixed supply.
C legal tender.
D readily acceptable.
Which change would be likely to reduce the earnings gap between doctors and bus drivers?
24 What could reduce the ability of a trade union to gain a pay rise for its members in a shoe
factory?
27 The table shows the proportion of income saved for different age groups.
age 15 – 29 30 – 39 40 – 49 50 – 62 63+
% of income saved –34% –4 % 18 % 29 % –23 %
28 Each worker in a firm specializes in performing one task. The firm then decides that each
worker should carry out a variety of tasks.
Which benefit will the firm be expecting to gain from the change?
Which line is most likely to represent the change in the weekly earnings of an unskilled, manual
labourer?
average
weekly
earnings
B
C
D
16 32 48 64
age
32 What will be the most likely effect of a fall in interest rates on saving and borrowing?
saving borrowing
A decrease decrease
B decrease increase
C increase decrease
D increase increase
33 When will a trade union find it easier to achieve higher wages for its members?
35 The table shows the change in real incomes for a number of occupations between 1978 and
2008.
36 Which function of money enables people to compare the worth of different products?
A medium of exchange
B standard for deferred payments
C store of value
D unit of account
UNIT-3
1 What is necessary for a company to be classified as a multi-national?
2 In 2001 some countries, including India and Pakistan, criticised the European Union for
continuing to protect European farmers with a subsidy while expecting poorer African countries
not to restrict trade.
5 Nazmin Uddin works in a local office as a secretary three days a week. She lives with her parents in
a small apartment.
Meer Ali owns a successful fitness centre that employs about twenty people and lives in a
large house.
saving borrowing
A falls falls
B falls rises
C rises falls
D rises rises
9 The following table gives information about four companies. Which one of these
A 2 1 100
B 1 2 50
C 10 20 20
D 20 5 1
10 In 2002 the trade union representing workers on the London Underground public transport
system called a strike.
company description
13 Which method of advertising would be the most cost-effective way of selling economics
textbooks to schools?
A commercial television
B daily newspapers
C direct mail
D local radio stations
Place the three people in the most likely order of income, from highest income to lowest income.
13 X, Y, Z
14 Y, Z, X
15 Z, X, Y
16 Z, Y, X
15 The table shows the weekly values of certain items for the average person in each
19 What might explain why wages paid in a particular occupation are high?
A bonuses
B commission
C long holidays
D overtime pay
21 Which statement about different income groups is true?
23 What is likely to be found when there are many small firms in an industry?
24 A student records her income and spending for the past month. What function is money
A medium of exchange
B standard of deferred payments
C store of value
D unit of account
25 A claim for higher wages by a trade union would not be helped by an increase in
A consumers’ demand.
B Labour productivity.
C Profit.
D Unemployment.
A central bank
B commercial bank
C investment bank
D World Bank
28 Many countries have been extending the role of market forces in their economies. What is
29 In 2000 the governments in a number of European countries had decided to reduce the amount
of gold held in their central banks.
What was likely to happen to the price of gold and the wages of gold miners as a result of this
decision?
A fall fall
B fall rise
C rise fall
D rise rise
30 Which of the following factors is likely to cause wages in an occupation to be low?
A extra responsibility
B rising unemployment
C the need for special skills
D unpleasant working conditions
31 On completing your studies, you decide you want to work in an organisation which is big enough
to give you a chance of promotion, but where shift work will not normally be required.
A a government office
B a hairdressing salon
C a hospital emergency department
D a local electrician’s
A a hospital doctor
B an office clerk
C a rubbish collector
D a shop assistant
33 The table shows how employment in five industries changed in a country between 1985 and
2002
1985 2000
(thousand) (thousand)
banking and finance 1336 1881
distribution and catering 3678 4323
extraction of minerals 1278 1094
manufacturing 3102 2128
transport 1550 1304
Which statement about these industries can be concluded from the table?
34 Mr Lee bought shares in Intel, a computer company producing throughout the world.
18 co-operative
B multi-national company
C public company
D sole proprietor
35 In what circumstances are trade unions more likely to be effective in wage negotiations for their
members?
A an economic boom
B a recession
C a period of declining productivity
D a period of rising unemployment
38 Which of the following government policies would lead to a more even distribution of income?
A individuals
B limited companies
C the government
D trade unions
44 When will a trade union be most effective in pursuing its members' interests?
45 What is likely to be the effect of a fall in interest rates on a consumer's borrowing and saving?
borrowing saving
A falls falls
B falls rises
C rises falls
D rises rises
46 What is most likely to cause the percentage of income saved in an economy to rise?
49 The table shows information about four financial institutions, A, B, C and D. Which
A no no
B no yes
C yes no
D yes yes
A commission
B hourly rates
C piece rates
D salary
52 Interest rates fall.
saving spending
A fall fall
B fall rise
C rise fall
D rise rise
53 The table shows the percentages of consumer spending on different items in four countries,
which have similar geographical conditions and climate.
A 20 30 25
B 30 25 15
C 40 25 10
D 40 20 10
54 The table shows the main source of export earnings by product for selected countries.
W diamonds 80 %
X sugar 90 %
Y cars 55 %
Z oil 80 %