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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.

If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

A The price of autos within the nation will rise by 10 percent

B The price of autos within the nation will rise by less than 10 percent

C The price of autos within the nation will rise by more than 10 percent

D The price of autos will not rise because of internal competition

Review Detailed Answer

Correct Answer: The price of autos within the nation will rise by 10 percent

A foreign-trade zone (FTZ) is ?

A a regional area within which trade with foreign nations is allowed

B a free trade agreement among several nations

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

D 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

Review Detailed Answer

Correct Answer: 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

Most tariffs have ?

A only revenue effects

B only protective effects

C Both protective and revenue effects

D neither protective or revenue effects

Review Detailed Answer

Correct Answer: Both protective and revenue effects

Ad valorem tariffs are collected as ?

A fixed amounts of money per unit traded

B a percentage of the price of the product

C a percentage of the quantity of imports

D All of the above

Review Detailed Answer

Correct Answer: a percentage of the price of the product

If we consider the impact on both consumers and producers, then protection of the steel industry is ?

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, but it might be in the interest of the state of Pennsylvania

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

Review Detailed Answer

Correct Answer: Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania

A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?

A Compound tariff

B Effective tariff

C Ad valorem tariff

D Specific tariff

Review Detailed Answer

Correct Answer: Specific tariff

With free trade the total value of imports would equal ?

A $100,000 units

B $400,000 units

C $600,000 units

D $800,000 units

Review Detailed Answer

Correct Answer: $400,000 units

Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

A Progressive and thus bear down on the wealthy

B regressive and thus bear down on the poor

C proportional and thus bear down on all consumers in the same manner

D deflationary and thus result in reductions in the price of imports

Review Detailed Answer

Correct Answer: regressive and thus bear down on the poor

Concerning a government’s trade policy, all the following generally apply except ?

A economic downturn and recession generally result in greater protectionism

B because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:

C When domestic exporting companies are organized, policy tends to favor freer trade

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

Review Detailed Answer

Correct Answer: because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:

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 ?

A be less than 12 percent and can be negative

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

C equal 6 percent

D exceed 30 percent

Review Detailed Answer

Correct Answer: be less than 12 percent and can be negative

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

A foreign-trade zone (FTZ) is ?

Most tariffs have ?

Ad valorem tariffs are collected as ?

If we consider the impact on both consumers and producers, then protection of the steel industry is ?

A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?

With free trade the total value of imports would equal ?

Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

Concerning a government’s trade policy, all the following generally apply except ?

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 ?