A2 ECONOMICS

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

A2 ECONOMICS

Most Challenging Questions 2022 (M/J)

Email *

What is an example of ‘nudge’ theory when applied to encouraging healthy eating?
*

1 point

A advertising the benefits of healthy eating

B increasing tax on sugary foods

C introducing a subsidy for fruit growers

D supermarkets putting fruit near cash registers

The diagram shows the short-run equilibrium for a firm operating in a monopolistically competitive market. What is not likely to occur at the long-run equilibrium?
*

1 point

A The individual firm’s demand curve is more elastic.

B The individual firm’s demand curve has moved left.

C The profit-maximising price is greater than average cost.

D The profit-maximising price is greater than marginal cost.

What is most likely to be found in an economy with a positive output gap?
*

1 point

A a higher potential than actual GDP

B high unemployment

C inflation

D low labour costs

The diagram shows an increase in both aggregate demand from AD1 to AD2 and aggregate supply from AS1 to AS2. What shows the output gap after the increase in AD and AS?
*

1 point

A Y1Y2

B Y1Y3

C Y2Y3

D Y3Y4

What is not a source of market failure?
*

1 point

A imperfect information

B income inequality

C monopoly

D non-excludability

Which statement would be associated with Keynesian economic theory?
*

1 point

A A change in the money supply is the main determinant of the rate of inflation.

B When unemployment falls below its natural rate, there is upward pressure on prices.

C Total spending in the economy affects real output and employment in the short run.

D Wages and prices are flexible so output and employment will always return to its equilibrium rate rate.

The diagram shows the short-run equilibrium for a firm operating in a monopolistically competitive market. What is not likely to occur at the long-run equilibrium?
*

1 point

A The individual firm’s demand curve is more elastic.

B The individual firm’s demand curve has moved left.

C The profit-maximising price is greater than average cost.

D The profit-maximising price is greater than marginal cost.

A monopoly firm is producing output OT, and selling its product at price OW, thereby maximising its profits, as shown. The government now decides that the firm’s operation generates positive externalities, and so gives the firm a subsidy. Assuming that the firm continues to seek maximum profit, what will result? *

1 point

A The firm continues to produce OT, and price remains at OW.

B The firm continues to produce OT, but charges a lower price.

C The firm increases production above OT, and reduces price.

D The firm reduces production below OT, and reduces price by the amount of the subsidy

Broken rice is an inferior good. What would be the resulting income and substitution effect on the quantity demanded of broken rice if its price falls?
*

1 point

In a closed economy with no government sector, the multiplier shows the impact of a change in
*

1 point

A consumption on investment.

B investment on national income.

C national income on consumption.

D national income on investment.

Which items in the table are classified as foreign aid?
*

1 point

The table shows data for an economy’s labour market. What is the economy’s percentage employment rate, to the nearest whole number?
*

1 point

A 5%

B 23%

C 73%

D 95%

What is an example of ‘nudge’ theory when applied to encouraging healthy eating?
*

1 point

A advertising the benefits of healthy eating

B increasing tax on sugary foods

C introducing a subsidy for fruit growers

D supermarkets putting fruit near cash registers

Which statement about the Keynesian liquidity preference demand for money model is correct?
*

1 point

B The demand for liquidity is completely interest rate inelastic at low rates of interest.

C The demand to hold liquidity by households is stable.

D The rate of interest on long-term government securities is inversely related to their price.

In which context relevant to growth in the money supply is the term total currency flow used?
*

1 point

A the money flow between central banks and commercial banks

B the money flow between central banks and governments

C the money flow between domestic residents and foreign residents

D the money flow between the general public and the financial sector

What is not a source of market failure?
*

1 point

A imperfect information

B income inequality

C monopoly

D non-excludability

What is most likely to be found in an economy with a positive output gap?
*

1 point

A a higher potential than actual GDP

B high unemployment

C inflation

D low labour costs

In 2012, an Australian airline company separated its international and domestic operations into separate companies. The company had been facing increasing competition from much larger competitors in international markets but had relatively little competition in domestic markets that had a higher price elasticity of demand. Which row shows the reasons that would support this separation?
*

1 point

Send me a copy of my responses.

Submit

Clear form

Forms

reCAPTCHA

Privacy Terms

This content is neither created nor endorsed by Google.