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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

_________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
A trade creation
B trade diversion
C trade exclusion
D trade distortion
Correct Answer: trade creation
________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
A trade creation
B trade diversion
C trade exclusion
D trade distortion
Correct Answer: trade diversion
If A forms a customs union with C, the value of trade diversion will be ?
A $0
B $10,000
C $20,000
D $40,000
Correct Answer: $0
If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
A 400 units from B
B 200 units from C
C 200 units from each
D 400 units from B and 200 units from C
Correct Answer: 200 units from C
Trade diversion takes place when ?
A a country moves from autarky to free trade
B a movement to a customs union reduces the costs of trade through standardization economic integration results in a
C economic integration results in a movement in product origin to a lower cost member country
D economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
Correct Answer: economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
The implementation of a common market involves all of the following except ?
A elimination of trade restrictions among member countries
B a common tax system and monetary union
C prohibition to restriction on factor movements
D a common tariff levied in imports from nonmembers
Correct Answer: a common tax system and monetary union
As of 2002, the ________ became the official currency union of the European Monetary System ?
A dollar
B mark
C franc
D euro
Correct Answer: euro
The implementation of the European Union has ?
A made it harder for Americans of compete against the Germans in the British market
B made it easier for Americans to compete against the Germans in the British market
C made it harder for Americans to compete against the Japanese in the British market
D made it easier for Americans to compete against the Japanese in the British
Correct Answer: made it harder for Americans of compete against the Germans in the British market
The European Union is an example of a/an ?
A customs union
B economic union
C common market
D free trade area
Correct Answer: common market
The European Union has achieved all of the following except ?
A adopted a common fiscal policy for member nations
B established a common system of agricultural price supports
C disbanded all tariffs between its member countries
D levied common tariffs on products imported from nonmembers
Correct Answer: adopted a common fiscal policy for member nations
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