PODAR INTERNATIONAL SCHOOL (CIE & IB)

IGCSE- GRADE VIII- ECONOMICS

Revision For Terminal Exam

Time to complete this assignment : 45 min

MULTIPLE CHOICE QUESTIONS

June 2002
3 A person planning for old age saves in the form of money rather than goods.
Which function does money perform when this is done?
A medium of exchange
B standard of deferred payment
C store of value
D unit of account
14 Why might a person buy ordinary shares on the stock exchange rather than put the money in a
savings account?
A to earn a fixed income
B to gain a high return
C to keep money in a safe place
D to start a company
June 2003
16 Nazmin Uddin works in a local office as a secretary three days a week. She lives with her parents in a
small apartment. Meer Ali owns a successful fitness centre that employs about twenty people and lives in a
large house. Which is likely to be true?
A Nazmin spends a smaller proportion of her income than Meer.
B Nazmin saves most of her income.
C Nazmin would find it easier than Meer to borrow money.
D Nazmin has a lower disposable income than Meer.
17 In a country, male workers on average earn more than female workers, although male and female
workers receive equal pay for equal work.
What could explain this?
A Female workers are more experienced. B Female workers are more likely to achieve promotion.
C Male workers are more likely to be in trade unions.
D Male workers have fewer qualifications.
June 2004
17 The table shows how three people spend their income.

Place the three people in the most likely order of income, from highest income to lowest income.
A. X, Y, Z
B. Y, Z, X
C. Z, X, Y
D. Z, Y, X
18 The table shows the weekly values of certain items for the average person in each group.
Which group saves the most on average?

Nov 2004
18 What is likely to be the effect of a fall in interest rates on a consumer's borrowing and saving?

June 2005
15 What is a non-wage factor that can affect an individuals choice of occupation?
A. bonuses
B. commission
C. long holidays
D. overtime pay
16 A person has no outstanding debts.
What might cause that person to save more and spend less from their monthly income?
A a rise in the choice of products
B a rise in income tax
C a rise in interest rates
D a rise in the price of essential products
Nov 2006
14 Which feature of working in an occupation might tend to keep the basic wage rate down?
A handling dangerous materials
B receiving commission payments
C undertaking training
D working unsocial hours
15 An athlete needs an income and also needs time for training and competitions.
Which occupation is most appropriate for the athlete?
A department store manager who is paid a salary
B livestock farmer working for profit
C assembly-line worker who is paid a wage
D self-employed photographer

STRUCTURED QUESTIONS

M/J 2004 P-4 Q-6

It was reported that in a country the poorest households spent 30% of their income on food while the richest
households spent 13% of food.
(a) Do these figures mean that the actual amount that the richest households spent on food is
lower than that spent by the poorest households? Explain your answer. [4]
(b) Ali has started his first job. Faizal is now in a senior position in her company. Describe how
the expenditure pattern of these two people might be different. [4]
(c) Analyse the motives that might cause a person to save rather than to spend. [6]
(d) What might be the result of a general increase in the level of consumers spending in an
economy? [6]

O/N 2006 p-4 q-3

(b) Explain what is meant by a trade union
[3]
(c) Discuss the extent to which the relative strengths of trade unions influence the level of earnings in
different occupations.
[7]