Lesson 2.3.1

2.3.1 The characteristics of AS Quiz: Pearson Edexcel Economics, Unit 2

20 questions

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Lesson 2.3.1, The characteristics of AS: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 2: Theme 2: The UK economy – performance and policies, written with Revision Ninja.

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The 20 questions

  1. What relationship does the aggregate supply curve show?

    • Interest and investment
    • Price and output
    • Price and consumption
    • Tax and output
  2. What causes a movement along a fixed short-run aggregate supply curve?

    • Wage rate changes
    • Corporation tax rates
    • Raw material costs
    • Price level change
  3. Which event shifts the short-run aggregate supply curve to the left?

    • Higher consumer spending
    • Increased productivity
    • Lower wage rates
    • Higher energy costs
  4. Why does the short-run aggregate supply curve slope upwards?

    • Constant raw costs
    • Flexible input prices
    • Sticky wage costs
    • Falling profit margins
  5. What shape is the classical long-run aggregate supply curve?

    • Vertical
    • Downward sloping
    • Upward sloping
    • Horizontal
  6. What prevents the short-run aggregate supply curve from being vertical?

    • Full capacity output
    • Fixed capital stock
    • Constant aggregate demand
    • Rigid input costs
  7. What causes SRAS to adjust towards LRAS in the long run?

    • Unchanged raw costs
    • Price level flexibility
    • Decreasing productive capacity
    • Fixed wage contracts
  8. Which factor shifts the long-run aggregate supply curve to the right?

    • Increased indirect taxes
    • Higher energy prices
    • Technological advances
    • Higher wage rates
  9. How does an appreciation of sterling affect short-run aggregate supply?

    • Shifts SRAS right
    • Shifts LRAS left
    • Movement down SRAS
    • Shifts SRAS left
  10. What does the horizontal section of a Keynesian LRAS curve represent?

    • Full employment output
    • Rising wage inflation
    • Decreasing labour supply
    • High spare capacity
  11. In classical economics, what determines long-run national output?

    • Consumer spending
    • Government spending
    • Productive capacity
    • Aggregate demand level
  12. What is the short-run effect of a leftward shift in aggregate supply?

    • Higher real output
    • Higher price level
    • Zero price change
    • Lower price level
  13. In the long run, what is the main effect of demand-side policies?

    • Lowering productivity
    • Changing price level
    • Increasing real output
    • Expanding capacity
  14. Which change shifts the short-run aggregate supply curve to the right?

    • Rising wage rates
    • Lower oil prices
    • Increased raw costs
    • Higher VAT rates
  15. How does a rise in employer National Insurance contributions affect aggregate supply?

    • Shifts SRAS right
    • Movement along SRAS
    • Shifts LRAS right
    • Shifts SRAS left
  16. Which event reduces an economy's potential output in the long run?

    • Lower energy costs
    • Better education standards
    • Higher investment
    • Net emigration
  17. How does effective competition policy influence long-run aggregate supply?

    • Increases tax rates
    • Raises raw costs
    • Increases economic efficiency
    • Reduces labour mobility
  18. In the classical LRAS model, what is the long-run effect of higher government spending on real output?

    • It decreases
    • It increases
    • Unchanged
    • It doubles
  19. Which factor shifts short-run aggregate supply but not long-run aggregate supply?

    • Raw material costs
    • Education levels
    • Technological advances
    • Labour productivity
  20. What term describes an unexpected event that suddenly shifts the aggregate supply curve?

    • Demand shock
    • Negative externality
    • Supply shock
    • Multiplier effect

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