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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

A tariff ______ increase a country overall welfare?

A will always

B will never

C can sometimes

D None of the above

Review Detailed Answer

Correct Answer: can sometimes

If a country an imposes an import tariff, its welfare can improve if ?

A the country is a small country rather than a larger country

B its terms of trade improve enough

C The tariff enhances the welfare of its trading partners

D Its government’s tax revenue increases because of the tariff

Review Detailed Answer

Correct Answer: its terms of trade improve enough

If a small country imposes a tariff on an imported good, its terms of trade will ?

A improve

B worsen

C not change

D any of these

Review Detailed Answer

Correct Answer: not change

A tariff of ________ would be prohibitive causing imports to fall to zero?

A $10

B $15

C $20

D $25

Review Detailed Answer

Correct Answer: $15

The deadweight cost of the tariff equals ?

A $10,000

B $25,000

C $50,000

D $75,000

Review Detailed Answer

Correct Answer: $50,000

With the tariff, the quantity of imports falls to ?

A 12,000 units

B 20,000 units

C 30,000 units

D 42,000 units

Review Detailed Answer

Correct Answer: 20,000 units

With free trade the total quantity of imports would equal ?

A 10,000 units

B 40,000 units

C 42,000 units

D 50,000 units

Review Detailed Answer

Correct Answer: 40,000 units

In developed countries, tariffs on raw materials tend to be ?

A highest of all

B higher than on manufactured goods

C equal to tariffs on manufactured goods

D lower than on manufactured goods

Review Detailed Answer

Correct Answer: lower than on manufactured goods

The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?

A consumer surplus

B producer surplus

C deadweight costs

D deadweight surplus

Review Detailed Answer

Correct Answer: consumer surplus

_______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ?

A producer surplus

B deadweight surplus

C government surplus

D consumer surplus

Review Detailed Answer

Correct Answer: consumer surplus

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

A tariff ______ increase a country overall welfare?

If a country an imposes an import tariff, its welfare can improve if ?

If a small country imposes a tariff on an imported good, its terms of trade will ?

A tariff of ________ would be prohibitive causing imports to fall to zero?

The deadweight cost of the tariff equals ?

With the tariff, the quantity of imports falls to ?

With free trade the total quantity of imports would equal ?

In developed countries, tariffs on raw materials tend to be ?

The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?

_______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ?