Economics section A

This is based on all choice questions from unit 1 of microeconomics. Most of these questions are from many different past papers. 

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1. What are the pure public goods?

  • Street lights, Flood defences and Lighthouses.
  • Capital goods.
  • Education and Health care.
  • Merit and Demerit goods.
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Other questions in this quiz

2. Non- excludability is where:

  • no one can be excluded from the benefiting of a good.
  • people can be excluded from benefiting of a good.
  • people can stop others from using the good.
  • the free market left alone fails to deliver an efficient allocation of resources.

3. An increase in imports of consumer goods is most likely to have been caused by a

  • rise in direct taxation.
  • fall in the exchange rate.
  • rise in household disposable income.
  • rise in household saving.

4. A decision by the government to introduce and expansionary fiscal policy would be less likely to succeed in reducing unemployment if a country had

  • a high marginal propensity to import.
  • a fixed exchange rate.
  • a high level of business and consumer confidence.
  • a high level of cyclical unemployment and spare capacity.

5. Choice is an important element in the basic economic problem because

  • high demand leads to high prices.
  • limited resources have alternative uses.
  • incomes are distributed unequally.
  • wants increase with income.

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