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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

If the world price of steel is $500 a ton a specific tariff $50 is equivalent to an ad valorem tariff of______________?
A 5 percent
B 10 percent
C 15 percent
D 20 percent
Correct Answer: 10 percent
In today’s world, most countries impose tariffs ?
A only on imports
B only on exports
C on both imports and exports
D on imports exports and nontraded goods
Correct Answer: only on imports
Domestic producers gain ________ because on the tariff?
A $50,000
B $75,000
C $120,000
D $150,000
Correct Answer: $75,000
With the tariff the government collects?
A $75,000
B $100,000
C $125,000
D $150,000
Correct Answer: $100,000
Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals ?
A 5 percent
B 10 percent
C 15 percent
D 20 percent
Correct Answer: 20 percent
A tariff can _______ raise a country’s welfare?
A never
B sometimes
C always
D None of these
Correct Answer: sometimes
If a nation fitting the criteria for the large nation model imposes an import tariff ?
A the domestic price of the product will increase by more than the tariff itself
B The domestic price of the product will increase by the same amount as the tariff
C The domestic price of the product will increase by less than the tariff
D None of the above
Correct Answer: The domestic price of the product will increase by less than the tariff
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 ?
A scientific tariff argument
B infant industry argument
C beggar they neighbor argument
D foreign dumping argument
Correct Answer: infant industry argument
A tariff that prohibits imports has only ?
A a revenue effect and redistribution effect
B revenue effect and protection effect
C consumption effect and protection effect
D redistribution effect and consumption effect
Correct Answer: consumption effect and protection effect
The effective rate of protection ?
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 how effective a tariff is in raising revenue for the government
D shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms
Correct Answer: shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms
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