IGCSE Grade 9 Economics
Unit 3 Test (3.2-3.3)
Marks: 30
Name: ______________________________________
Duration: 45 min
Section A: Multiple Choice (10 points)
1. Which statement about spending and saving is false?
A If people have earnings, they may be able to save
B The interest rate affects saving and borrowing
C If people have no income, they cannot consume
D Confidence affects saving and borrowing
2. Which changes are most likely going to increase levels of saving?
A Lower interest rate and higher wealth tax
B Higher interest rate and lower wealth tax
C Better financial institutions and retiring from work
D Social attitudes that saving is good and a low interest rate
3. A teacher is considering moving from Denmark to the Netherlands to teach there and
earn more. He knows the cost of living is similar.
Which situation in the Netherlands would make it most likely for the teacher to teach
there?
A Lower pre-tax income and a lower interest rate
B Lower pre-tax income and a higher after-tax income
C Higher pre-tax income and a lower after-tax income
D Higher pre-tax income and a lower interest rate
4. Which will not increase the tendency to borrow?
A A higher interest rate
B A lower interest rate
C Confidence in a strong economy
D Easy access credit cards and ‘pay half now, half next year’ offers
5. The training requirements for nurses are decreased and care robots replace homecare
nurses. What will likely happen to the wage rate and quantity of labour of nurses?
A Wage rate will increase, the quantity of labour change will be uncertain
B Wage rate change is uncertain, the quantity of labour will increase
C Wage rate will decrease, the quantity of labour change will be uncertain
D Wage rate change is uncertain, the quantity of labour will decrease
6. What is an unintended disadvantage of a minimum wage?
A It can increase workers' income
B It can cause increased tax revenue for the government
C It makes companies demand more labour
D It can increase unemployment
7. Why would a pilot earn more than a bus driver?
A Everyone wants to be a pilot
B The supply of pilots is limited
C Bus drivers work more hours
D There are more buses than planes
8. Which is normally considered a non-wage factor for labour?
A Commission
B Pension
C Piece wage rate
D Hourly wage rate
9. In China a government job is popular, as many believe that government jobs are very
stable. However, many highly skilled graduates decide to work in the private sector.
Which of the following is likely to be true in China?
A The private sector offers better wages while the public sector offers good non-wage factors
B Both the private and public sector offer a good wage
C The non-wage benefits are better in the private sector
D Skilled graduates have limited bargaining power in order to get a government job
10. Which is not an advantage of specialisation and division of labour?
A Workers can only do one specific task
B Workers get a lot of practice on a specific task
C It may reduce the pressure on the worker
D It can result in lower costs for the company
1
2
3
4
5
6
7
8
9
10
Section B: Short Answer (20 points)
(a) Describe three factors that can influence an individual’s choice of occupation. [6]
(b) Explain two reasons why an unskilled worker is usually paid less than a skilled
worker. [4]
(c) Analyse the advantages that a company may gain from specialising their production
process. [4]
(d) Analyse how improvements in education can affect the pattern of employment. [6]
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Marking Scheme. Section A: Multiple Choice
1
C
2
B
3
B
4
A
5
C
6
D
7
B
8
B
9
A
10
A
Section B: Short Answer
C
Analyse how improvements in education can affect the pattern of
employment. [6]
May be more skilled workers (1) increase qualifications (1) workers may seek
better paid jobs (1) jobs with better working conditions (1).
There is likely to be a reduction in primary sector employment (1) an increase in
secondary / tertiary sector employment (1).
May be an increase in women in employment (1) if girls benefit from
improvements in education (1).
May increase employment of teachers (1) if e.g. class sizes are reduced (1).
May encourage an increase in migrant workers (1) attracted by better education
for their children (1).
D
Analyse the advantages that a company may gain from specialising their production
process. [4]
- Output per head may be higher (1) as each worker can concentrate on one
specific task (1) and become highly skilled at that particular task (1)
- Workers are easier to train (1)
- Workers can acquire the necessary skills more quickly (1)
- Make best use of resources (1)
- Increase in productivity (1)