A Level Economics Quiz 2021 Part 2

15 Questions

Quiz Description

Economics is a branch of social science that studies how individuals, households, and firms make decisions relating to distribution of very limited resources to productive resources so as to derive maximum gain or satisfaction.

Students who choose to study economics not only gain skills needed in a complex market but come with strong analytical and problem-solving skills. In our way of helping out, a quiz has been made available for students who wish to test their knowledge and understanding of the subject concentrating on the most recent years, we have chosen GCE Advanced level economics of the year 2021.

Questions in this quiz will help understand more the topics “firms, markets etc. now test yourself by taking the quiz, which will teach you even more. For more on economics questions and quizzes you can visit our website

Good luck!!!

1:

If an increase in the price of a good raises the total revenue of a firm supplying
that good, then the demand for the good is most likely to be


Correct
  • 1:
    Price elastic
  • 2:
    Price inelastic
  • 3:
    Income elastic
  • 4:
    Income inelastic
2:

Fixed costs of production are also known as


Correct
  • 1:
    Natural costs
  • 2:
    Direct costs
  • 3:
    Prime costs
  • 4:
    Overhead costs
3:

Question is based on figure 2 relating to the cost situation of a manufacturing firm

Determine the value of the total variable costs at output level Q


<p>Question is based on figure 2 relating to the cost situation of a manufacturing firm </p><p> Determine the value of the total variable costs at output level Q </p>
Correct
  • 1:
    1000
  • 2:
    2000
  • 3:
    1000 /Q
  • 4:
    2000 /Q
4:

When a firm produces an output from which marginal cost equals average revenue then it has achieved


Correct
  • 1:
    Technical efficiency
  • 2:
    Productive efficiency
  • 3:
    Allocative efficiency
  • 4:
    X-efficiency
5:

Question is based on Figure 3 relating to a firm in an imperfect market.

Which of the following statement is correct about the firm at output Q1?


<p> Question is based on Figure 3 relating to a firm in an imperfect market.</p><p> Which of the following statement is correct about the firm at output Q1? </p>
Correct
  • 1:
    Raise output to increase profit since MC is less than MR
  • 2:
    Leave output unchanged to increase profit since Mc is less than MR
  • 3:
    Reduce output to increase profit since MC is less than MR
  • 4:
    Reduce output to reduce profit since MC is less than MR
6:

A market structure in which there exists a single supplier facing a single buyer of a product is called


Correct
  • 1:
    monopoly
  • 2:
    Bilateral monopoly
  • 3:
    Oligopoly
  • 4:
    Monopolistic competition
7:

The main reason why profit is different from other factor incomes is that


Correct
  • 1:
    It is a fixed reward
  • 2:
    It is less volatile than other factor incomes
  • 3:
    It is not determined by demand and supply
  • 4:
    It may be negative
8:

Economic rent existing only in the short run mainly due to shortages in the supply of a factor is called


Correct
  • 1:
    Rent of ability
  • 2:
    Quasi-rent
  • 3:
    Maximum rent
  • 4:
    Minimum rent
9:

The nominal interest rate in an economy is given as 10%. If the rate of inflation is 6% then the real interest rate is


Correct
  • 1:
    4%
  • 2:
    6%
  • 3:
    16%
  • 4:
    10%
10:

It is estimated that a vacant building would be capable of providing its owner with an annual rent of

200,000FCFA if it were used as a super market,

150,000FCFA if it were used as a night club and 100,000FCFA if it were used as a cinema.
If the owner were to allow it to be used as a super market, the economic rent
would be


Correct
  • 1:
    50,000FCFA
  • 2:
    100,000FCFA
  • 3:
    150,000FCFA
  • 4:
    200,000FCFA
11:

Question is based on Table below relating to hypothetical economy.

Determine the percentage of GDP contributed by the tertiary sector.


<p> Question is based on Table below relating to hypothetical economy. </p><p> Determine the percentage of GDP contributed by the tertiary sector. </p>
Correct
  • 1:
    4.55%
  • 2:
    55.55%
  • 3:
    39.9%
  • 4:
    50%
12:

The ___ sums up all factor incomes earned by a country’s resources in producing current output over one year less depreciation.


Correct
  • 1:
    Expenditure method
  • 2:
    Income method
  • 3:
    Output method
  • 4:
    Factor method
13:

GNP is less than GDP when


Correct
  • 1:
    Net property income from abroad is positive
  • 2:
    Net property income from abroad is zero
  • 3:
    Net property income from abroad is negative
  • 4:
    Net property income from abroad is absent
14:

In a frugal economy, households save part of their income. This implies that


Correct
  • 1:
    MPC is less than 1
  • 2:
    MPC is equal to 1
  • 3:
    MPC is greater than 1
  • 4:
    MPC is infinity
15:

In a closed and governed economy, aggregate demand is given as


Correct
  • 1:
    C + I + X
  • 2:
    C + I + G
  • 3:
    C + I - M
  • 4:
    C + I + G + X - M

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A Level Economics Quiz 2021 Part 2
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