MCQsDrive | MCQsDrive

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.

Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

A A + B + C + D+ E +F

B A + B + C + D

C A + D

D B + C + E + F

Review Detailed Answer

Correct Answer: A + B + C + D

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

A C + F

B A

C B

D C

Review Detailed Answer

Correct Answer: C

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?

A A + B + E

B A + B + C + D

C A

D D

Review Detailed Answer

Correct Answer: D

Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?

A A + B + E

B D

C C + F

D C + D + F

Review Detailed Answer

Correct Answer: D

Which of the following taxes can be supported by the benefits principle of taxation ?

A All these answers can be supported by the benefits principle of taxation

B Progressive income taxes used to pay for national defense

C Petrol taxes used to pay for roads

D property taxes used to pay for policies and the court system

Review Detailed Answer

Correct Answer: All these answers can be supported by the benefits principle of taxation

The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

A Proportional tax rate

B average tax rate

C marginal tax rate

D vertical tax rate

Review Detailed Answer

Correct Answer: marginal tax rate

The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

A efficient

B progressive

C regressive

D proportional

Review Detailed Answer

Correct Answer: progressive

The average tax rate is ?

A total taxes paid divided by total income

B the extra taxes paid on an additional dollar or income.

C the taxes paid by the marginal worker

D total income divided by total taxes paid

Review Detailed Answer

Correct Answer: total taxes paid divided by total income

The marginal tax rate is ?

A the taxes paid by the marginal worker

B total income divided by total taxes paid

C the extra taxes paid on an additional unit of income

D total taxes paid divided by total income

Review Detailed Answer

Correct Answer: the extra taxes paid on an additional unit of income

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

A a proportional tax

B a regressive tax

C an equitable tax

D a progressive tax

Review Detailed Answer

Correct Answer: a regressive tax

Showing 11 to 20 of 31 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?

Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?

Which of the following taxes can be supported by the benefits principle of taxation ?

The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

The average tax rate is ?

The marginal tax rate is ?

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?