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Economics Mcqs 4423 MCQs [All-Courses]

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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.

All Topics  4423

A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market ?
A domestic subsidy
B voluntary restraint agreement
C domestic content requirement
D tariff-rate quota
Correct Answer: domestic content requirement
A production subsidy that is granted to a producer of an import-competing good ?
A does not require government taxes to finance it
B yields the same deadweight welfare loss as an import tariff or import quota
C has only a consumption effect deadweight loss
D has only a protective effect deadweight loss
Correct Answer: has only a protective effect deadweight loss
international dumping may involve ?
A selling goods to foreigners at a price below that charged domestic consumers
B selling goods to foreigners at a price below the cost of production
C antidumping duties being levied on the imported, dumped goods
D All of the above
Correct Answer: All of the above
Governments around the world tend to auction quota licenses ?
A never
B seldom
C often
D always
Correct Answer: seldom
________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
A quota license
B quota rents
C quota prices
D None of the above
Correct Answer: quota rents
Similar to import tariffs import quotas tend to result in ?
A higher prices and reduced imports
B increased government revenue
C increased consumer surplus
D decrease producer surplus
Correct Answer: higher prices and reduced imports
Quotas are government-imposed limits on the _________ of goods trade between countries?
A prices
B quantity
C revenue
D costs
Correct Answer: quantity
For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
A U.S oil companies and workers deserved higher incomes
B U.S oil was of superior quality and merited higher prices
C one should not be too dependent on foreign suppliers of crucial resources
D The U.S government needed the quota revenue to balance its budget
Correct Answer: one should not be too dependent on foreign suppliers of crucial resources
If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
A Capture the entire subsidy in the form of higher profits
B Increase their level of production
C reduce wages paid to domestic workers
D consider the subsidy as a increase in production cost
Correct Answer: Increase their level of production
A tariff-rate quota ?
A is a limit on the number of tariffs that a country can place on imports?
B uses a single tariff along with import quotas to restrict import
C is designed to avoid the the price increases caused by simple tariffs
D is a two-tier tariff system intended to restrict imports?
Correct Answer: is a two-tier tariff system intended to restrict imports?
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