economics MCQs – Page 446

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
8901. In todays world, most countries impose tariffs ?
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A. only on imports

B. only on exports

C. on both imports and exports

D. on imports exports and nontraded goods

8902. For advanced countries such as the United States, tariffs on imported raw materials tend to be ?
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A. equals to tariffs on imported manufactured goods

B. higher than tariffs on imported manufactured goods

C. The highest of all tariffs

D. lower than tariffs on imported manufactured goods
8903. A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
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A. Compound tariff

B. Effective tariff

C. Ad valorem tariff

D. Specific tariff
8904. With the tariff the government collects?
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A. $125,000

B. $150,000

C. $75,000

D. $100,000
8905. The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?
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A. consumer surplus

B. producer surplus

C. deadweight surplus

D. deadweight costs

8906. According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
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A. foreign dumping argument

B. beggar they neighbor argument

C. scientific tariff argument

D. infant industry argument
8907. If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?
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A. None of the above

B. nominal tariff rate on the final product equals the effective tariff rate on the product

C. nominal tariff rate on the final product is greater than the effective rate on the product

D. nominal tariff rate on the final product is less than the effective tariff rate on the final product

8908. A tax of 15 percent per imported item would be an example of a (an) ?
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A. Ad valorem tariff

B. Specific tariff

C. Compound tariff

D. Effective tariff

8909. The deadweight cost of the tariff equals ?
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A. $25,000

B. $50,000

C. $10,000

D. $75,000

8910. Specific tariffs are collected as ?
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A. a percentage of the quantity of imports

B. All of the above

C. a percentage of money per unit traded

D. fixed amount of money per unit traded
8911. If we consider the impact on both consumers and producers, then protection of the steel industry is ?
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A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located

B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania

C. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania

D. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
8912. Most tariffs have ?
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A. only revenue effects

B. only protective effects

C. Both protective and revenue effects

D. neither protective or revenue effects

8913. Ad valorem tariffs are collected as ?
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A. fixed amounts of money per unit traded

B. a percentage of the quantity of imports

C. All of the above

D. a percentage of the price of the product
8914. Domestic producers gain ________ because on the tariff?
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A. $120,000

B. $50,000

C. $75,000

D. $150,000

8915. A tariff of ________ would be prohibitive causing imports to fall to zero?
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A. $20

B. $10

C. $15

D. $25

8916. Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?
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A. exceed 30 percent

B. be less than 12 percent but must be greater than zero

C. equal 6 percent

D. be less than 12 percent and can be negative
8917. A tariff ______ increase a country overall welfare?
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A. will never

B. can sometimes

C. None of the above

D. will always

8918. Concerning a governments trade policy, all the following generally apply except ?
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A. When domestic exporting companies are organized, policy tends to favor freer trade

B. economic downturn and recession generally result in greater protectionism

C. Policy tends to favor freer trade in countries whose imports are inputs into critical industries

D. because domestic consumers outnumber domestic producers policy markers usually enact Free-trade policies to satisfy the consumer majority:
8919. A foreign-trade zone (FTZ) is ?
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A. a regional area within which trade with foreign nations is allowed

B. designed to promote exports by deferring imports duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

C. designed to limit exports of manufactured goods by placing export taxes on goods made within the zone

D. a free trade agreement among several nations

8920. The effective rate of protection ?
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A. distinguishes between tariffs that are effective and those that are ineffective

B. is the minimum level at Which a tariff becomes effective in limiting imports?

C. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

D. shows how effective a tariff is in raising revenue for the government