A Level Economics Quiz 2015 Part 1

15 Questions

Quiz Description

Economics as a whole is a social science subject concerned chiefly with description and analysis of the production and distribution of goods and services. This subject also deals with the studies of how individuals, governments and nations make decisions about how to allocate resources.

In this quiz, we shall examine questions that are based on the following topics: “market economy, factors affecting population, demand and supply and so on”

In order to help out with your studies in economics, we have selected 15 questions from the June session of 2015. These questions will give you a general view of how the exam questions are set and how one can reason out to answer the questions. These questions are based on the CGCE Advanced level Economics. Each question has four options and only one is correct among these options. In addition to these quizzes, there are other quizzes available which are also based on past CGCE past questions.

Good Luck

1:

When economic principles are developed from factual evidence, this method of economic reasoning is called


Correct
  • 1:
    Descriptive economics
  • 2:
    Deduction
  • 3:
    Hypothesis testing
  • 4:
    Induction
2:

Question 2 is based on the table below, showing the production possibility situation of a country

If this economy chooses the combination of goods at point A,


<p>Question 2 is based on the table below, showing the production possibility situation of a country </p><p>If this economy chooses the combination of goods at point A, </p>
Correct
  • 1:
    Only capital goods are being produced
  • 2:
    All resources in the economy are used in the production of capital goods
  • 3:
    All resources are used in the production of consumer goods
  • 4:
    No capital goods are used as factors of production
3:

A market economy can result in


Correct
  • 1:
    Production ignoring externalities
  • 2:
    Production not satisfying consumer’s real wantsv
  • 3:
    Shortage and surpluses of products
  • 4:
    Reduced incentives lowering individual effort
4:

Which of the following will likely trigger a move from a command economy to a market economy?


Correct
  • 1:
    Inequitable redistribution of income
  • 2:
    Inflation resulting from the removal of standards
  • 3:
    Low quality goods leading to low living standards
  • 4:
    Industrial unrest with frequent conflicts between workers and employers
5:

A security whose market price is the same as its nominal value is said to be


Correct
  • 1:
    At par
  • 2:
    In equilibrium
  • 3:
    At zero rate
  • 4:
    At premium
6:

If the quantity of all factors used in a production process increased by 10% and production rose by 15% there are


Correct
  • 1:
    Decreasing returns to scale
  • 2:
    Increasing returns to scale
  • 3:
    Decreasing returns to a variable factor
  • 4:
    Increasing returns to a variable factor
7:

Providence and Son’s enterprise has a capital structure composed of:

Debentures - 40 million FCFA

Preferences shares - 80 million FCFA

If the company is lowly geared, the figure for
its ordinary share capital might be


Correct
  • 1:
    20 million FCFA
  • 2:
    400 million FCFA
  • 3:
    40 million FCFA
  • 4:
    120 million FCFA
8:

If an industry remains in an area long after the factors that attracted it have disappeared, this is known as


Correct
  • 1:
    Industrial location
  • 2:
    Natural location advantage
  • 3:
    Industrial inertia
  • 4:
    Regional location advantages
9:

Total population = 100 million people

Birth rate = 5 per thousand

National growth rate = 2 per thousand

The number of deaths in this population is:


Correct
  • 1:
    200,000 people
  • 2:
    3,000,000 people
  • 3:
    2,000,000 people
  • 4:
    300, 000 people
10:

Total population = 100 million people

Birth rate = 5 per thousand

National growth rate = 2 per thousand

An ageing population will result in


Correct
  • 1:
    An increase in labour mobility
  • 2:
    A reduction in transfer payments
  • 3:
    An increase in the dependent population
  • 4:
    A constant pattern of consumption
11:

Total population = 100 million people

Birth rate = 5 per thousand

National growth rate = 2 per thousand

Under which of the following circumstances would an increase in the price of good X result in a fall in the demand for good Y?


Correct
  • 1:
    Good X and good Y are substitutes
  • 2:
    Good X and good Y are complements
  • 3:
    Good X and good Y are both income inelastic
  • 4:
    Good x is a normal good and good Y is an inferior good
12:

If the government of a country fixes a guaranteed minimum price of Pm the effect would be that


<p>If the government of a country fixes a guaranteed minimum price of Pm the effect would be that </p>
Correct
  • 1:
    Government would have to purchase quantity XZ at price Pm
  • 2:
    Price would be forced down towards the equilibrium
  • 3:
    There would be excess supply of YZ
  • 4:
    There would be a shortage of XZ
13:

A given industry supplies 3,000 units of a good per month at a price of 40 FCFA per unit. If the price elasticity of supply is 4, how many units will this firm supply if the price rises to 50 FCFA?


Correct
  • 1:
    5,400 units
  • 2:
    3,600 units
  • 3:
    3,000 units
  • 4:
    6,000 units
14:

Given a market demand curve Q=120-2P and supply curve Q=4 P, where P represents price, the equilibrium quantity and price are


Correct
  • 1:
    80 and 20
  • 2:
    120 and 30
  • 3:
    240 and 60
  • 4:
    60 and 40
15:

A shift of a demand curve to the left could be caused by:


Correct
  • 1:
    The imposition of a tax on the good by the government
  • 2:
    A change of consumers’ tastes in favour of a substitute
  • 3:
    A fall in the price of a complementary good
  • 4:
    A reduction in the price of the good

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A Level Economics Quiz 2015 Part 1
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