SOME MULTIPLE CHOICE Q's

There are more people in developing countries who cannot read or write than in developed countries.

What can be concluded from this?

A Developed countries will use more labour than capital as it is skilled

B In developing countries, factors of production are not used to their maximum potential

C Less money need to be spent on education in developed countries than in developing countries

D Production in developing countries is likely to rely on more capital than labour

THE ANSWER IS B, but i thought it would be C surely?

In wartime conditions, cigarettes have been used as money.

What disadvantage do cigarettes have for trading compared with notes and coins?

A They cannot act as a medium of exchange

B They have no intrinsic value

C They lack durability

D They make a double coincidence of wants necessary

THE ANSWER IS C, but i thought it was D, doesnt one person want the cigarettes in order to buy them and vice versa?

There is this graph which shows that the percentage change in house prices has been increasing gradually in a developed country. What might have caused these changes in price?

A An increase in government subsidies to house builders

B An increase in income

C an increase in the supply of houses

D An increase in unemployment

THE ANSWER IS B, surely it can be B or D? Unemployment increases, less spending, supply falls, increase price?

Sometimes travel companies advertise holidays at prices below cost.

Why is this?

A An excess demand for holidays

B An excess supply for holidays

C Price inelastic demand for holidays

D Insufficient competition in the holiday market

THE ANSWER IS B, i drew a demand and supply diagram and put a lower price etc, and from that i thought it would be A?

What would cause disposable incomes to become less equal?

A increased employment

B increased welfare benefits

C More progressive taxes

D More regressive taxes

THE ANSWER IS D, i thought it would be B?

What is a possible disadvantage of the changes caused by long-term economic growth?

A Rising cyclical unemployment

B Rising employment

C Rising seaonsal unemployment

D Rising structural employment

THE ANSWER IS D, surely it can be A as well?

thank you!

Reply 1

miranda7719

what exam is this for?