WORK SHEET: ECONOMICS YEAR 9 WORK

1. Would the following increase or decrease the supply of cars (write increase or decrease) (4)
a) An increase in the use of robots in production of cars …………………………….
b) An increase in general tax levels …………………………………………………….
c) An increase in the price of petrol …………………………………………………….
d) A subsidy given by the government to car producers ………………………….…
2. Use the word Increase or decrease to show whether the following activities will increase or reduce
the
price of beef in a free market. (5)
a) An increase in the demand for beef. …………………………………………….
b) An increase in the supply of beef ……………………………………………
c) Farmers keep more sheep than cows ……………………………………………
d) A successful advertising campaign for fish ……………………………………
e) Increase in demand for McDonald's beef burgers. …………………………………
3. Which one of the following is not true about a demand curve? (1)
A. When price falls demand will rise
B. There is an inverse relationship between price and the quantity demanded
C. When there is a price change, there will be a movement along the demand curve
D. Demand will rise if the price rises.
4. Which of the following is not a factor affecting demand? (1)
A. Tastes and preferences
B. Interest rates
C. Price of complimentary goods
D. Changes in Technology
5. Which one of the following is not true about supply? (1)
A. If there is a change in price, there will be a movement along the supply curve
B. If supply is fixed, the supply curve will be horizontal
C. There is a proportionate relationship between the price of a good and the amount supplied.
D. If price falls, supply will fall.
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6. Which of the following is least likely to be a factor of supply (1)
A. Costs of production
B. Advertising
C. Natural factors
D. Seasons
7. Which of the following statements is true if the price is set below the market equilibrium price in a
market
(1)
A. Supply and demand will be equal
B. There will be excess supply in the market
C. There will be excess demand in the market
D. Supply will be greater than demand in the market
8. Say whether the following statement is true or false (1)
A “normal demand curve will slope upwards from left to right” …………………
9. How does taste and preference affect demand for a commodity or service (2)
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10. A farmer reduces the land used to grow wheat from 80 hectares to 60 hectares and increases the use
of the land for growing potatoes from 80 to 100 hectares. What is the opportunity cost of this change?
(1)
A. The output from 20 hectares used for growing potatoes.
B. The output from 20 hectares used for growing wheat.
C. The output from 60 hectares used for growing wheat.
D. The output from 80 hectares used for growing potatoes
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11. The diagram shows the change in an economy’s production possibility curve (PPC) from year 1 to
year
2. What might explain the change from year 1 to year 2. (1)
Goods
Year 1 Year 2
0 Services
A. Resources have moved from the production of services to the production of goods.
B. The number of workers unemployed in manufacturing has fallen.
C. The producers of services have introduced better technology.
D. The workers in the production of goods have become less efficient.
12. Which of the following events will increase the price of butter (1)
A. A rise in the price of Ghee
B. A fall in the price of bread
C. A fall in the supply of dairy products due to drought
D. A successful advertising campaign to promote the use of margarine
13. Which one of the following is not true about supply (tick one) (1)
A. If there is a change in price, there will be a movement along the supply curve
B. If the supply is fixed, the supply curve will be horizontal
C. There is a proportionate relationship between price of a commodity and the quantity supplied
D. If the price falls, supply will also fall
14. If the value of price elasticity is greater than one (>1), we say that it is: - (1)
A Inelastic

B Elastic

C Unitary

D None of the above

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15. Which of the following is not a factor affecting demand? (1)
A. Tastes and preferences
B. Interest rates
C. Price of complimentary goods
D. Changes in Technology
16. In recent years China has become the world’s largest potato producer. Potatoes now compete with
rice
as a major part of the Chinese diet. Which of the following describes the relationship between
potatoes and rice? (1)
A. They are complements
B. They are substitutes
C. They are unrelated
D. They must be grown together
17. In the south of Spain, a man sells oranges from his garden to passers-by. The demand curve (DD) for
oranges is shown in the figure 1d.
Figure 1d
What price per orange should he charge to maximize his revenue? (1)
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D
10
8642
0 10 20 30 40 50
price
(euros)
oranges
0
5
18. The diagram below (figure 1e) shows a market for wheat that is in equilibrium.
Figure 1e
Which area represents the total revenue for wheat farmers? (1)
A. OTXY
B. OVXY
C. OVXZ
D. OWXY
19. Study figure 1f below that shows the demand and supply of coffee among the population in Russia:
State and explain any two factors that could have caused a change in demand from D1 to D2? (2)
Figure 1f
20. When prices of rice, wheat flour and beef increased, people in Kibera decided to eat more ugali and
Sukuma wiki. Explain why they decided to do that. (3)
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O
quantity
price
D
S
TVW
XY
Z
O
quantity
price
D
1
D
2
S
6
21. Identify and explain two circumstances which might cause some commodities to have a perfectly
inelastic demand. (2)
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22. Table 2 shows estimates of income elasticity of demand and price elasticity of demand for cigarettes
in USA.

Elasticity Cigarettes

Income elasticity of demand +0.43

Price elasticity of demand -0.31

Table 2
What does the data in table 2 show about cigarettes in USA? (1)
A. They are an inferior good and demand is price inelastic
B. They are an inferior good and demand is price elastic
C. They are a normal good and demand is price elastic
D. They are a normal good and demand is price inelastic.
23. The organization of Oil Exporting Countries (OPEC) is planning to increase the price of oil in order
to increase total revenue. Using effects of PED on TR analysis, explain the assumptions that they are
making about the price elasticity of demand for oil. (3)
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24. Study Table 1a illustrating price elasticity of demand for some products.
 1 2 3

Product PED

A -0.4

B -1.2

C -6.5

Table 1a
Indicate in column 3 whether the demand for each of the products A, B, C is price elastic or price
inelastic. (3)
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25. Figure 1c shows the market for coffee.
In Figure 1c the shift in the supply curve from S to S1 is most likely to have resulted from (1)
A. an increased preference for coffee by consumers
B. improved technology in the coffee industry
C. an increase in taxes imposed on coffee processing firms
D. an increase in subsidies to coffee farmers
26. Briefly explain one reason why the demand for cigarettes is likely to be price inelastic. (2)
…………………………………………………………………………………………………………………
27. The diagram (graph) below, Figure 1k, illustrates the demand and supply of potatoes.
The market equilibrium for potatoes is at point X. Later, there is a very good harvest of potatoes. What is
the new equilibrium point? (1)
O
price
quantity
A
B
D
C
X
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Answer for question 27.
A. A
BB
CC
DD
28. The diagram figure 1m shows the demand for a box of chocolate bought by a trader.
Figure 1m
State one factor affecting demand that could cause the movement from point X to point Y? (1)
...................................................................................................................................................
29. Which asset is not part of the factor of production "land"? (1)
A. A forest
B. A natural harbor
C. An oilfield
D. A road
30. Briefly explain the effect of a decrease in the price of coffee on the equilibrium price and quantity
demanded of tea. (Note that supply remains constant) (3)
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31. Explain the difference between price inelastic demand and price elastic demand. (2)
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O
quantity demanded per week
price
D
D
X
Y
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32. Indicate which of the following commodities has a:

i.
ii.
A perfectly inelastic demand
iii.
iv.

An elastic demand
An inelastic demand

A perfectly elastic demand

A bread …………………………………………….

B Chocolates …………………………………………...
C Teddy bear toys ………………………………...................
D Salt ……………………………………………….

(1)
(1)
(1)
(1)
Figure 6 shows the production possibility curve (PPC) for an economy.
Figure 6
33. With reference to the data in figure 2, explain the likely impact of the movement from point A to
point B.
(3)
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34. Define the term scarcity as used in economics. (1)
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NG is a Chinese company selling home-made chocolates to retailers in Shanghai. In 2015, NG was
charging
Chinese Yen (CNY) 20 per box of chocolates. The average sales per week were 12,000 boxes. Due to
competition, NG decided to reduce the price to CNY16 per box. Sales rose up to 16,00 boxes per week.
(35) Calculate the PED for NG chocolates (show your working and interpret the results) (3)
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Figure 8 shows two demand curves for two different products, DA and DB. The demand for product A is
price
inelastic and the demand for product B is price elastic.
Figure 8

Analyze the effects on total revenue

£8. (show your working for both products and interpret your answer)
(6)
Product A

………………………………………………………………………………………………………………………
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Product B
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During the 2019 Cricket World cup, supporters of teams such as India, Bangladesh, England, Pakistan and
Sri
Lanka watched the matches in stadiums and on television around the world. Pepsi was one of the
advertisers
during the event.

On figure 9, draw to illustrate the effects

equilibrium price and new quantity. Label your diagram fully. (3)

S
Price
P1
D1
0
Q1 Quantity
Figure 9
38. What is the basic economic problem facing many countries? (1)
A. climate change and global warming
B. significant quantities of unemployed resources
C. uneven distribution of income and wealth
D. What to produce, how to produce and for whom.
12
The production possibility curve (PPC) (figure 1) shows the hours per day a student has either for
entertainment
or for revision.
Figure 1
(39) The student revises for 3 hours a day. As exams approach, the student decides to revise for 9 hours a
day. What is the
opportunity cost of this decision? (1)
A. 3 hours of revision
B. 6 hours of entertainment
C. 6 hours of revision
D. 9 hours of entertainment
40. The following tables shows the demand for rice as income changes for two different income groups.
Group A and Group B.
High income earners: Group A Low income earners: Group B

Year Income in euros Quantity demanded (Kgs) Year

2019 40 000 25 2019

2020 44 000 20 2020

Calculate the YED for each group (Show your working) (4)
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