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A Level Economics YEAR 12 INITIAL NUMERACY ASSESSMENT Test 2 ON PAPER INITIAL NUMERACY ASSESSMENT Name
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A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

Oct 17, 2020

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Page 1: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

A LevelEconomics

YEAR 12 INITIAL NUMERACY ASSESSMENT

Test 2ON PAPER

INITIAL NUMERACY ASSESSMENT

Name

Page 2: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economicsPage 2 A Level Economics Initial Numeracy Assessment

ALevelEconomicsInitialNumeracyAssessment(Test2)ANSWERALLTHEQUESTIONSINTHISPAPER

1 Simonownsasmalljuicebar.Histwomostpopularjuicesare‘redjuice’and‘greenjuice’.Eachjuice

hasdifferentingredients.Thecostofingredientsfor‘redjuice’is60pperjuice.Thecostofingredientsfor‘greenjuice’is40pperjuice.Simonsells50‘redjuices’and80‘greenjuices’perday.Calculatethedailycostofmakingthetwojuices.

Showyourworkingshere:

2 Thepriceofeachjuicedrinkis£2.30.AssumingSimonsellsthequantitiesstatedinQ1,

i) CalculatehowmuchrevenueSimonearnsinonedayfromselling‘redjuiceand‘greenjuice’.(revenue=pricexquantity)

ii) UsingyouranswerfromQ1,thencalculatetheprofitSimonmakes(profit=revenue–costs).

Showyourworkingshere:

3 Simondecidestoincreasethepriceofhisjuicedrinksby20%.Salesof‘redjuice’fallby10%andsales

of‘greenjuice’fallby5%.CalculateSimon’snewlevelofrevenue.

Page 3: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economics A Level Economics Initial Numeracy Assessment Page 3

4 IncometaxintheUKisappliedinbands.Nobodypaystaxonthefirst£11,850thattheyearn.Peoplepay20%taxonthenext£34,500earnedabove£11,850.Peoplepay40%taxonthenext£103,659afterthat.IfEvelynearns£60,000peryearasalawyer,provethatshehastopay£12,360inincometax.

Showyourworkingshere:

5 Ifthetoprateoftaxincreasesto50%,calculate

i) howmuchtaxEvelynpaysnowii) howmuchincomeshehasleftoverafterpayingherincometax

AssumethatEvelyn’sincomedoesnotchangeandtheothertaxbandsremainthesame. Showyourworkingshere:

6 Nomotakesaloanfromapaydaycompany.Nomotakesa£300loanat0.8%perday.

HowmuchwillNomoowethelenderafteraweek. Showyourworkingshere:

Page 4: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economicsPage 4 A Level Economics Initial Numeracy Assessment

7

AandBaretwopointsonastraightline.IfwemovefromAtoB,howmanyYunitsdowegainandhowmanyXunitsdowelose?

Showyourworkingshere:

8

ThegradientdoesnotchangebuttherelationshipbetweenYandXchanges.ForeveryvalueofYtherearenow50fewerunitsofX.Adaptthediagramabovetoillustratethechange.

Showanyworkingsyouneedtodohere:

Page 5: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economics A Level Economics Initial Numeracy Assessment Page 5

9 A currency investor thinks that she can make a profit by buying Russian Roubles. Sheexchanges£10,000toRoubleswhentheexchangerateis£1=96Roubles.Laterintheyear,theexchangeratechangesto£1=55RoublesandshechangesherRoublesbacktoPounds.Howmuchprofitdidshemake?

Showyourworkingshere:

10 Georgelikestospendhisincomeinthesamewayeverymonth;20%savings;40%necessitiesandhouseholdbills,10%onwatchingfootball,30%onluxuries.IfGeorgeearns£28,000ayear(aftertax),calculatehowmuchhespendsonthese4areasperyear.

Showyourworkingshere:

11

Incomedecilegroupisawayofsplittingupthepopulationforstatisticalanalysis:imagineliningupthepopulationfrompooresttorichest;incomedecilegroup1wouldcontainthepoorest10%ofpeople,incomedecilegroup2wouldcontainthenextpoorest10%,andsoon.

i) Calculatethemeanaverageexpenditureontransportofthelowest3incomedeciles.ii) Calculatethemeanaverageexpenditureontransportofthehighest3incomedeciles.

Showyourworkingshere:

024681012141618

020406080

100120140160180

1 2 3 4 5 6 7 8 9 10

%

£pe

rweek

incomedecilegroup

Spendingontransportbyincomedecilegroup

ExpenditureonTransport PercentageofTotalExpenditure

Page 6: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economicsPage 6 A Level Economics Initial Numeracy Assessment

12 Thetablebelowshowsthetotaloutputfiguresforafirmasitaddsmoreworkerstoitsproductionprocess.Fillintheright-handcolumn.

Workers TotalOutput Outputperworker1 18 2 24 3 36 4 44 5 48

Showyourworkingshere:

13 Gunterbrewsbeer.Hebrews100pintsofbeerperweek.Rosamakeswine.Shebottles125bottles

ofwineperweek.However,GunterlikeswineandRosalikesbeer.So,theyagreetotrade.Theytradeataratioof5beers:2wine.EveryweekGuntertrades20pintsofbeerforbottlesofwine.After4weeks,howmanypintsofbeerandbottlesofwinedoesGunterhave.

Showyourworkingshere:

14 Canadahasapopulationof36.2millionpeople.Canadahasatotalnationalincomeof$1.6billion.

Calculatetheaverageincomeperperson. Showyourworkingshere:

Page 7: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

www.tutor2u.net/economics A Level Economics Initial Numeracy Assessment Page 7

15ThechartbelowshowsGovernmentspendingbyarea2015/16:

TotalGovernmentspendinginthe2015/16financialyearwas£722bn.Calculatethe%ofGovernmentspentonSocialProtection,HealthandEducationinthatyear.

Showyourworkingshere:

Debtinterest£36bn

Socialprotection£231bn

Personalsocialservices…

Health…

Transport…

Education…

Defence£45bn

Industry,agriculture&employment£24bn

Housing&environment£28bn

Publicorder&safety£34bn

Other(includingEUtransactions)£48bn

Page 8: A Level Economics - Prospect School€¦ · A Level Economics Initial Numeracy Assessment Page 3 4 Income tax in the UK is applied in bands. Nobody pays tax on the first £11,850

More Economics revision and support at:www.tutor2u.net/economics

@tutor2uEcon