A Level Economics YEAR 12 INITIAL NUMERACY ASSESSMENT Test 2 ON PAPER INITIAL NUMERACY ASSESSMENT Name
A LevelEconomics
YEAR 12 INITIAL NUMERACY ASSESSMENT
Test 2ON PAPER
INITIAL NUMERACY ASSESSMENT
Name
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ALevelEconomicsInitialNumeracyAssessment(Test2)ANSWERALLTHEQUESTIONSINTHISPAPER
1 Simonownsasmalljuicebar.Histwomostpopularjuicesare‘redjuice’and‘greenjuice’.Eachjuice
hasdifferentingredients.Thecostofingredientsfor‘redjuice’is60pperjuice.Thecostofingredientsfor‘greenjuice’is40pperjuice.Simonsells50‘redjuices’and80‘greenjuices’perday.Calculatethedailycostofmakingthetwojuices.
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2 Thepriceofeachjuicedrinkis£2.30.AssumingSimonsellsthequantitiesstatedinQ1,
i) CalculatehowmuchrevenueSimonearnsinonedayfromselling‘redjuiceand‘greenjuice’.(revenue=pricexquantity)
ii) UsingyouranswerfromQ1,thencalculatetheprofitSimonmakes(profit=revenue–costs).
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3 Simondecidestoincreasethepriceofhisjuicedrinksby20%.Salesof‘redjuice’fallby10%andsales
of‘greenjuice’fallby5%.CalculateSimon’snewlevelofrevenue.
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4 IncometaxintheUKisappliedinbands.Nobodypaystaxonthefirst£11,850thattheyearn.Peoplepay20%taxonthenext£34,500earnedabove£11,850.Peoplepay40%taxonthenext£103,659afterthat.IfEvelynearns£60,000peryearasalawyer,provethatshehastopay£12,360inincometax.
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5 Ifthetoprateoftaxincreasesto50%,calculate
i) howmuchtaxEvelynpaysnowii) howmuchincomeshehasleftoverafterpayingherincometax
AssumethatEvelyn’sincomedoesnotchangeandtheothertaxbandsremainthesame. Showyourworkingshere:
6 Nomotakesaloanfromapaydaycompany.Nomotakesa£300loanat0.8%perday.
HowmuchwillNomoowethelenderafteraweek. Showyourworkingshere:
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7
AandBaretwopointsonastraightline.IfwemovefromAtoB,howmanyYunitsdowegainandhowmanyXunitsdowelose?
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8
ThegradientdoesnotchangebuttherelationshipbetweenYandXchanges.ForeveryvalueofYtherearenow50fewerunitsofX.Adaptthediagramabovetoillustratethechange.
Showanyworkingsyouneedtodohere:
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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?
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10 Georgelikestospendhisincomeinthesamewayeverymonth;20%savings;40%necessitiesandhouseholdbills,10%onwatchingfootball,30%onluxuries.IfGeorgeearns£28,000ayear(aftertax),calculatehowmuchhespendsonthese4areasperyear.
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11
Incomedecilegroupisawayofsplittingupthepopulationforstatisticalanalysis:imagineliningupthepopulationfrompooresttorichest;incomedecilegroup1wouldcontainthepoorest10%ofpeople,incomedecilegroup2wouldcontainthenextpoorest10%,andsoon.
i) Calculatethemeanaverageexpenditureontransportofthelowest3incomedeciles.ii) Calculatethemeanaverageexpenditureontransportofthehighest3incomedeciles.
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1 2 3 4 5 6 7 8 9 10
%
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rweek
incomedecilegroup
Spendingontransportbyincomedecilegroup
ExpenditureonTransport PercentageofTotalExpenditure
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12 Thetablebelowshowsthetotaloutputfiguresforafirmasitaddsmoreworkerstoitsproductionprocess.Fillintheright-handcolumn.
Workers TotalOutput Outputperworker1 18 2 24 3 36 4 44 5 48
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13 Gunterbrewsbeer.Hebrews100pintsofbeerperweek.Rosamakeswine.Shebottles125bottles
ofwineperweek.However,GunterlikeswineandRosalikesbeer.So,theyagreetotrade.Theytradeataratioof5beers:2wine.EveryweekGuntertrades20pintsofbeerforbottlesofwine.After4weeks,howmanypintsofbeerandbottlesofwinedoesGunterhave.
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14 Canadahasapopulationof36.2millionpeople.Canadahasatotalnationalincomeof$1.6billion.
Calculatetheaverageincomeperperson. Showyourworkingshere:
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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
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