KUB

8th grade
Name:_____________ Date:______ Economics
WS

ECONOMICS- WORKSHEET
SECTION 3

1) Which of the following is a function of a central

bank?
A- Issue bank notes and coins
B- Accept deposits
C- Lend loans to people
D- Offer shares of companies

2) Tony is considering which job to choose. Which

of the following non-wage factors would he
consider?
A- Career prospects
B- Salary
C- Availability of bonus
D- Fringe benefits

3) Which advantage do coins have that make them

more suitable than banknotes to act as money?
A- They are more divisible.
B- They are more durable.
C- They are more portable.
D- They are more recognisable.
4) Which of the following is a function of a trade
union?
A- Bargaining with the employers for a rise in
wages
B- Providing money to workers made redundant
C- Improving working conditions
D- Providing information about potential
employment opportunities
5) Which of the following will result in an increase
in spending?
A- Reduction in prices of goods
B- Lower interest rates
C- Increase in disposable income
D- Lower availability of loans
6) Which of the following will increase
unemployment in the economy?
A- Recession
 B- Lack of job opportunities
C- shortage of workers in the market
D- Increase in population of the economy
7) What is the most important factor that affects
how much a family saves?
A the income of the family
B the level of taxation
C the rate of inflation
D the reliability of banks
8) Which of the following is a characteristic of
money?
A- It is durable
B- Easily available
C- It has the same value everywhere in the world
D- It is very difficult to recognise it
9) A woman takes a 10 year loan from a bank. She
lists four of her most valuable possessions which
could be offered to the bank if she fails to pay the loan
back. Which of the following would the bank be least
likely to accept?
A- Gold coins and jewellery
B- A mansion in a very wealthy town
C- Government bonds and other financial assets
D- Her passport

10) When is a trade union most likely to increase the

wages of its members?
A- When imports are increasing
B- When output is increasing
C- When inflation is increasing
D- When unemployment is increasing

11) Which of the following will increase saving in an

economy?
A- Increase in unemployment
B- Increase in price
C- Increase in inflation
D- A pandemic
12) Which of the following is an advantage of an
NMW( national minimum wage)?
A- Costs of forms will increase
B- Incentive for the unemployed to work
C- Increase the output of the economy
D- Reduce inflation

13) Which of the following will increase the incentive

to borrow money?
A- Lower interest rates
B- Increased availability of loans
C- Increase in wealth
D- Increase in disposable income

LONG ANSWER SECTION

Q1) Define Trade Unions(2)

 Q2) State any four characteristics of money (4)

Q3) What factors can be taken to determine the size

of a firm (6)

Q4) Differentiate between central bank and

commercial bank (8)