Q1) As the need for energy increases, energy suppliers use a mix of resources. Which resource is renewable?

A coal B gas C oil D water Q2) A public limited company delivers groceries which customers order on the Internet. What is an example for the firm of the factor of production called capital? A the computers required to receive the orders B the fuel used by the delivery vehicles C the money required to pay the firms costs D the shares it sells on the stock exchange Q3) What is likely to play a more important role in a mixed economy than in a free market economy? A consumer wishes B government intervention C international trade D the profit motive Q4) What necessarily happens when an external benefit exists? A Social benefit is greater than private benefit. B Social benefit is greater than social cost. C Social cost is equal to private cost. D Social cost is greater than private cost. Q5) In June 2010, a government published a proposal to increase Value Added Tax (Goods and Services Tax) on some goods from January 2011. Between June 2010 and January 2011 consumers bought more of those goods before the price increase occurred. After January, consumers bought less of the goods. How would the changes be shown on a demand diagram for the goods? from June-January after January

Q6) A developer built some large houses in a rural area which poorer people could not afford. The houses destroyed an area of natural beauty. What type of market failure resulted from the development? A inequality of income B lack of information C negative externality D price discrimination

Q7) What work is in the primary sector? A delivering milk B designing gardens C growing fruit trees D selling agricultural fertilizer Q8) What are the actions of a trade union intended to achieve in the long run? A benefits to society B harm to employers C help for members D reduced company profits Q9) An individual has various financial assets. What is the most easily available as cash? A a current (checking) bank account B government bonds C share certificates in a public company D time deposits in a savings bank Q10) A firm opens new branches in four different cities. As a result, it can negotiate a better deal from its foreign suppliers because it purchases larger quantities. However, it finds the distance between branches causes organisational problems. What describes the result for the firm? A an external economy of scale and an external diseconomy of scale B an external economy of scale and an internal diseconomy of scale C an internal economy of scale and an external diseconomy of scale D an internal economy of scale and an internal diseconomy of scale Q11) As a firm increases its weekly output from 10 units to 20 units, its average cost falls from $15 to $10. Which of its costs have risen? A fixed costs and variable costs only B fixed costs, variable costs and total costs C total costs only D variable costs and total costs only Q12) A group of hotels, owned and operated in France, needs its staff to be able to speak a number of languages so it employs people from different countries. Different firms, providing tours from other countries, send customers to the hotels in France. The hotel group has shares issued on the stock exchange. What type of company is the hotel group? A a multi-national B a partnership C a private company D a public company Q13) Machu Picchu is Perus most popular tourist destination. One train company, PeruRail, operates a monopoly service up to the site. Why might competition on the route increase the fares paid by passengers? A Competitive firms have more influence on price than a monopoly.

B Competitive firms never make a loss. C Less advantage may be taken of economics of scale. D More profit may be available to spend on new technology to reduce costs of production. Q14) Russia exports wheat. In 2010, because of a bad harvest, the Russian Government prevented the export of wheat to keep enough supplies for domestic use. What happened as a result of the governments action? A Prices were fixed by the wheat producers. B The amount produced was determined by the government. C The price of wheat abroad fell. D There was a redistribution of domestic production.

Q15) An increase in online banking by customers using home computers has reduced the level of employment in the banking sector of developed countries. What describes this kind of unemployment? A frictional B regional C seasonal D technological Q16) China has become South Africas largest trading partner. In 2009, 16 % of South Africas imports came from China while 11 % of its exports went to China. China is also investing in infrastructure designed to help increase production in South Africa. What can be concluded from this information? A China is investing more in South Africa than in other countries. B Chinas GDP will grow more slowly than South Africas GDP. C GDP in South Africa is likely to rise. D South Africa imported a greater number of goods and services from China than it exported to China. Q17) What is usually true of workers approaching retirement when they are compared with new entrants to the workforce? A They will be more adaptable. B They will be more experienced. C They will be more mobile. D They will be physically stronger Q18) In 2010, Nigeria had a birth rate of 36 and an infant mortality rate of 94. What can be concluded from this information? A Nigeria experienced a natural decrease in population. B Nigerias population increased. C 36 children were born per hundred of the population. D 94 babies died before their first birthday out of every thousand babies born.

Q19) A country imports oil, which has risen in price and which is used for production and for distribution. There has also been an increase in unemployment in the country. Businesses have closed and total consumer demand has fallen. What is likely to happen to the balance of trade and economic growth?

Q20) Which factor would cause a countrys exchange rate to fall? A demand for imports increase B domestic interest rates rise C domestic savings increase D more tourists visit the country. Q21) The diagram shows the value of exports and imports of goods of a country in five years

Between which two years did the country have an increase in the value of imports and an improvement in its trade balance? A 1 and 2 B 2 and 3 C 3 and 4 D 4 and 5

Q22) What is an advantage to a country of free trade? A greater international diversification of production B greater range of domestically produced goods C greater reliance on other countries D greater specialisation in the use of resources

Q23) What is most likely to be found in both developed and developing economies?

A Adult literacy rates are more than 90 %. B A high proportion of wealth is owned by a few people. C Earnings from agriculture and mining contribute most to GDP. D Those who live in rural areas have access to proper sanitation. 24) What is usually a characteristic of a developed country? A a dependency on primary product exports B high rates of economic growth C low levels of productivity D low rates of population growth 25) After more than 70 years of production, a German car manufacturer, Volkswagen, has decided to locate the production of its biggest selling car in developing countries, rather than Germany. What is the main advantage of this policy? A to access new management techniques B to make use of better infrastructure C to sell the car only to customers in developing countries D to train and employ labour at a lower cost

26) A government has a target of keeping inflation between 2 % and 3 %. The diagram shows the rate of inflation over a four year period.

What can be deduced from the diagram? A The government target was missed in two years. B The price level fell in two years. C The price level was at its highest in the first year. D The real value of money fell in three years. 27) A country experienced its usual yearly increase in the rate of unemployment. Unfortunately this was followed by the loss of jobs resulting from the regular downturn in global economic activity. Which types of unemployment occurred?

28) Between 2009 and 2010, an economy grew by 2.1 %. What is most likely to have increased during this period? A population B production C unemployment D wages 29) Why might an increase in employment reduce a countrys productivity? A The cost of employing workers may increase. B The new workers employed may be less skilled. C The new workers employed may work with more advanced technology. D The price of goods produced may fall 30) An increase in which of the following is least likely to cause inflation? A consumer spending B government spending C income tax D wages 31) The following are a governments receipts from taxation

What is the total amount of revenue raised by direct taxes? A $315m B $525m C $590m D $700m

32) Why are schools sometimes built and run with government money? A The private sector could not afford the cost of investment to build schools. B The private sector would have lower standards than government schools. C The provision of schools by the government ensures the widest choice for students. D There are external benefits from the provision of education. 33) A government decides to sell to a private firm its monopoly supply of gas to households. How could the government protect the interests of households after selling a large company to the private sector? A by excluding all competition from foreign companies B by imposing a tax on excess profits C by introducing a quota system for imports of gas D by removing price controls on gas 34) The table shows a firms average revenue and average cost. What level of output, A, B, C or D, gives maximum profit?

35) Amit and Pardeep set up in business together. Each has half of the shares in the business and limited liability. What type of business organisation is this? A a co-operative B a partnership C a private company D a public company 36) A manufacturing firm wishing to have better control of its raw materials would seek to grow A horizontally. B laterally. C vertically backwards. D vertically forwards. 37 The financial director of a company adds up the cost for the firm of rent, insurance, new machinery and the chief executives basic salary. The director then divides that total by the firms output.

What has the director calculated? A average fixed cost B average revenue C average total cost D average variable cost 38) What might cause a rise in the proportion of income that a person saves? A a fall in interest rates B a fall in population C a fall in real incomes D a fall in the income tax rate 39) A trade union negotiates a basic weekly wage for its members with all employers in an industry. In addition to the basic wage, one company also operates a production bonus at factory level. What is the aim of this company? A to give equal wages to all workers B to increase the efficiency of the workers C to introduce a minimum wage D to reduce its total wage bill 11 What is likely to cause wages in an occupation to be high? A a low level of responsibility B high unemployment C pleasant working conditions D the need for special skills