A Level Economics Quiz 2016 Part 1

15 Questions

Quiz Description

Economics as a social science subject is the scientific study of the ownership, use, and exchange of scarce resources – often shortened to the science of scarcity.

Based on past CGCE questions, we have chosen 15 questions from the June session of Advance Level Economics 2016. These questions are based on the CGCE Economics syllabus. Some of these topics include “scarcity, population growth, supply and so on”. These questions aim to give each student a guide on the manner of approach to the Advance level Economics multiple choice questions.

Keep in mind that these questions are very tricky. Most often, the answers look very similar to one another. So, you’re advised to read carefully, make sense out of the question and understand each question before answering it. The questions contain four options and only one is correct.

After trying these sets of questions, there are other sets of questions which are also based on the June session of 2016. You can attempt them next…

Good luck and wish you the best!!

1:

In economics scarcity is a problem that


Correct
  • 1:
    does not affect the rich
  • 2:
    exists in every society.
  • 3:
    can be solved by advances in technology.
  • 4:
    would disappear if resources are increased.
2:

Choice is a fundamental problem in an economy because


Correct
  • 1:
    everybody must make a choice
  • 2:
    money is scarce relative to a country’s resources
  • 3:
    resources are scarce relative to man’s wants
  • 4:
    the majority of the world’s population has low incomes
3:

Which of the following statements applies to a free enterprise economy?


Correct
  • 1:
    Resources are allocated by the government only.
  • 2:
    The interest of the society is always greater than the individual interest
  • 3:
    Consumers influence the ownership of resources
  • 4:
    Resources are allocated by the price system
4:

More public goods are likely to be found in


Correct
  • 1:
    More public goods are likely to be found in
  • 2:
    decentralised economies
  • 3:
    traditional economies
  • 4:
    mixed economies
5:

This question is based on the table below

Marginal product is at a maximum where


<p>This question is based on the table below </p><p> Marginal product is at a maximum where </p>
Correct
  • 1:
    1 worker is employed
  • 2:
    3 workers are employed
  • 3:
    2 workers are employed
  • 4:
    6 workers are employed
6:

Which of the following groups has the first claim on the assets of a company in the event of liquidation?


Correct
  • 1:
    Debenture holders
  • 2:
    Equity holders
  • 3:
    Ordinary shareholders
  • 4:
    The owners of the company
7:

A conglomerate merger occurs when


Correct
  • 1:
    a tobacco firm buys a television firm
  • 2:
    A fertilizer firm merges with a farmer’s cooperative
  • 3:
    two super markets merge
  • 4:
    a steel manufacturer merges with a steel company
8:

A footloose industry tends to locate.


Correct
  • 1:
    anywhere
  • 2:
    close to major markets
  • 3:
    closer to the source of raw material
  • 4:
    close to good transport networks
9:

If two population pyramids are presented, which of them will more likely represent a developed economy?


Correct
  • 1:
    That with a higher population aged between 0 - 17 years.
  • 2:
    That with a higher population aged above 65 years
  • 3:
    That with a lower population aged above 65 years
  • 4:
    That with a lower population aged between 18 to 64 years
10:

The dependency ratio of a country whose total population is 30 million people and the working population is 7.5 million people is


Correct
  • 1:
    4:1
  • 2:
    2:1
  • 3:
    3:1
  • 4:
    1.25:1
11:

This question is based on table below which is relating to an individual firm

Over which range of output is demand inelastic?


<p>This question is based on table below which is relating to an individual firm </p><p></p><p> Over which range of output is demand inelastic? </p>
Correct
  • 1:
    50 – 60 units
  • 2:
    30 – 40 units
  • 3:
    40 – 50 units
  • 4:
    60 – 70 units
12:

The Figure below shows changes in the supply of and demand for good Y

What is the cause of the movement from El to E2?


<p>The Figure below shows changes in the supply of and demand for good Y </p><p> What is the cause of the movement from El to E2? </p>
Correct
  • 1:
    A fall in production costs with an increase in the price of complements for good Y
  • 2:
    A fall in the price of raw materials with an increase in the price of the substitute for good Y
  • 3:
    A tax levied on the output of good Y with an increase in consumers’ incomes
  • 4:
    A subsidy on good Y with a fall in the price of a substitute good
13:

The money value of total utility at the level of consumption OX is


<p>The money value of total utility at the level of consumption OX is </p>
Correct
  • 1:
    DEAO
  • 2:
    TEAO
  • 3:
    SRPO
  • 4:
    OPRX
14:

If the government grants a subsidy of 20 FCFA per bag, what will be the total cost of the subsidy to the government?


<p> If the government grants a subsidy of 20 FCFA per bag, what will be the total cost of the subsidy to the government? </p>
Correct
  • 1:
    240 FCFA
  • 2:
    280 FCFA
  • 3:
    700 FCFA
  • 4:
    980 FCFA
15:

Which method of price stabilization most exposes the scheme to embezzlement?


Correct
  • 1:
    Buffer stocks
  • 2:
    Cartels
  • 3:
    Commodity Agreements
  • 4:
    Stabilization Funds

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A Level Economics Quiz 2016 Part 1
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