MCQOPTIONS
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MCQOPTIONS
This section includes 51 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which Pakistani city is famous for high quality sports equipment ? |
| A. | Sialkot |
| B. | Chiniot |
| C. | Gujranwala |
| D. | Lahore |
| Answer» B. Chiniot | |
| 2. |
With free trade the total quantity of imports would equal ? |
| A. | 10,000 units |
| B. | 40,000 units |
| C. | 42,000 units |
| D. | 50,000 units |
| Answer» C. 42,000 units | |
| 3. |
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 |
| Answer» C. $600,000 units | |
| 4. |
With the tariff the government collects? |
| A. | $75,000 |
| B. | $100,000 |
| C. | $125,000 |
| D. | $150,000 |
| Answer» C. $125,000 | |
| 5. |
With the tariff, the quantity of imports falls to ? |
| A. | 12,000 units |
| B. | 20,000 units |
| C. | 30,000 units |
| D. | 42,000 units |
| Answer» C. 30,000 units | |
| 6. |
Which of the following is Cottage Industry ? |
| A. | Cement |
| B. | Sugar |
| C. | Handicraft |
| D. | Textile |
| Answer» D. Textile | |
| 7. |
Which city is famous for the textile mills that produce finest worsted suiting in the world ? |
| A. | Haripur |
| B. | Lawrencepur |
| C. | Faisalabad |
| D. | Karachi |
| Answer» D. Karachi | |
| 8. |
When did Pakistan Meteorological Department Successfully experimented artificial rainfall in Thar (Sindh) ? |
| A. | August 3, 2000 |
| B. | September 15, 2001 |
| C. | July 13, 2000 |
| D. | August 15, 2000 |
| Answer» B. September 15, 2001 | |
| 9. |
When did Pakistan launched its first space satellite Badr I largely designed and fabricated by SUPARCO ? |
| A. | August 10, 1991 |
| B. | July 16, 1990 |
| C. | September 12, 1992 |
| D. | October 16, 1989 |
| Answer» C. September 12, 1992 | |
| 10. |
The Wah is famous for ? |
| A. | Ordnance factory |
| B. | Mughal Garden |
| C. | Both of them |
| D. | None of them |
| Answer» B. Mughal Garden | |
| 11. |
The ratio of Industrial progress in the country is ? |
| A. | 4.3% |
| B. | 5.4% |
| C. | 6.2% |
| D. | 8.6% |
| Answer» E. | |
| 12. |
The national security argument for protection is more likely to be valid when ? |
| A. | The purpose is to maintain protection for an indefinite time period |
| B. | The industry is characterized by increasing returns to scale |
| C. | The economy operates during a recession |
| D. | The protected industry provides invaluable goods during periods of war |
| Answer» E. | |
| 13. |
The first nuclear power plant was set up in Karachi in ? |
| A. | 1971 |
| B. | 1970 |
| C. | 1972 |
| D. | 1973 |
| Answer» D. 1973 | |
| 14. |
The Faisalabad is also known as ? |
| A. | Little England |
| B. | Little California |
| C. | Little Manchester |
| D. | Little Oxford |
| Answer» D. Little Oxford | |
| 15. |
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 |
| Answer» E. | |
| 16. |
The difference between what consumers have to pay for a particular and what they are willing to pay is known as ? |
| A. | consumer surplus |
| B. | producer surplus |
| C. | deadweight costs |
| D. | deadweight surplus |
| Answer» B. producer surplus | |
| 17. |
The deadweight cost of the tariff equals ? |
| A. | $10,000 |
| B. | $25,000 |
| C. | $50,000 |
| D. | $75,000 |
| Answer» D. $75,000 | |
| 18. |
The Chiniot city is known for its ornate brickwork and ? |
| A. | laquer work |
| B. | fire work |
| C. | wooden work |
| D. | None of them |
| Answer» D. None of them | |
| 19. |
The biggest Industry of Pakistan is ? |
| A. | cement |
| B. | Sugar |
| C. | Textile |
| D. | Paper |
| Answer» D. Paper | |
| 20. |
The biggest Industrial unit in public sector is ? |
| A. | Karachi Shipyard |
| B. | Pakistan Steel Mili |
| C. | State Cement |
| D. | Telephone Industry of Pakistan |
| Answer» C. State Cement | |
| 21. |
The agro based industry is ? |
| A. | Woodwork |
| B. | Dairy farms |
| C. | Carpets |
| D. | Iron work |
| Answer» C. Carpets | |
| 22. |
_______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ? |
| A. | producer surplus |
| B. | deadweight surplus |
| C. | government surplus |
| D. | consumer surplus |
| Answer» E. | |
| 23. |
Most tariffs have ? |
| A. | only revenue effects |
| B. | only protective effects |
| C. | Both protective and revenue effects |
| D. | neither protective or revenue effects |
| Answer» D. neither protective or revenue effects | |
| 24. |
Mianwali is important for ? |
| A. | Embroidery work |
| B. | irrigation work |
| C. | wood work |
| D. | agriculture |
| Answer» C. wood work | |
| 25. |
Industry is the second largest sector of the economy. How much of GDP it accounts for ? |
| A. | 16.5% |
| B. | 18.2% |
| C. | 19.7% |
| D. | 20.5% |
| Answer» C. 19.7% | |
| 26. |
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 |
| Answer» B. only on exports | |
| 27. |
In the year 2010-11 what was per capita income ? |
| A. | $ 1095 |
| B. | $ 905 |
| C. | $ 945 |
| D. | $ 975 |
| Answer» B. $ 905 | |
| 28. |
In developed countries, tariffs on raw materials tend to be ? |
| A. | highest of all |
| B. | higher than on manufactured goods |
| C. | equal to tariffs on manufactured goods |
| D. | lower than on manufactured goods |
| Answer» E. | |
| 29. |
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 |
| Answer» D. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania | |
| 30. |
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 |
| Answer» C. 15 percent | |
| 31. |
If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ? |
| A. | nominal tariff rate on the final product equals the effective tariff rate on the product |
| B. | nominal tariff rate on the final product is greater than the effective rate on the product |
| C. | nominal tariff rate on the final product is less than the effective tariff rate on the final product |
| D. | None of the above |
| Answer» B. nominal tariff rate on the final product is greater than the effective rate on the product | |
| 32. |
If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ? |
| A. | valid for stereos, but nor for most products imported by Pakistan |
| B. | valid for most products imported by Pakistan but not for stereos |
| C. | deceiving since Koreans eventually spend the dollars on Pakistani goods |
| D. | deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas |
| Answer» D. deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas | |
| 33. |
If a small country imposes a tariff on an imported good, its terms of trade will ? |
| A. | improve |
| B. | worsen |
| C. | not change |
| D. | any of these |
| Answer» D. any of these | |
| 34. |
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 |
| Answer» D. None of the above | |
| 35. |
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 |
| Answer» B. The price of autos within the nation will rise by less than 10 percent | |
| 36. |
If a country an imposes an import tariff, its welfare can improve if ? |
| A. | the country is a small country rather than a larger country |
| B. | its terms of trade improve enough |
| C. | The tariff enhances the welfare of its trading partners |
| D. | Its government’s tax revenue increases because of the tariff |
| Answer» C. The tariff enhances the welfare of its trading partners | |
| 37. |
Heavy Mechanical Complex Taxila was set up with the aid of ? |
| A. | China |
| B. | Japan |
| C. | USA |
| D. | UK |
| Answer» B. Japan | |
| 38. |
For advanced countries such as the United States, tariffs on imported raw materials tend to be ? |
| A. | equals to tariffs on imported manufactured goods |
| B. | lower than tariffs on imported manufactured goods |
| C. | higher than tariffs on imported manufactured goods |
| D. | The highest of all tariffs |
| Answer» C. higher than tariffs on imported manufactured goods | |
| 39. |
During the fiscal year 2009-10 gross fixed capital formation or domestic investment grew by ? |
| A. | 19.8% |
| B. | 10.3% |
| C. | 9.2% |
| D. | 11.5% |
| Answer» C. 9.2% | |
| 40. |
Domestic producers gain ________ because on the tariff? |
| A. | $50,000 |
| B. | $75,000 |
| C. | $120,000 |
| D. | $150,000 |
| Answer» C. $120,000 | |
| 41. |
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 |
| Answer» C. proportional and thus bear down on all consumers in the same manner | |
| 42. |
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 |
| Answer» C. When domestic exporting companies are organized, policy tends to favor freer trade | |
| 43. |
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 |
| Answer» C. a percentage of the quantity of imports | |
| 44. |
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 |
| Answer» C. beggar they neighbor argument | |
| 45. |
A tax of 15 percent per imported item would be an example of a (an) ? |
| A. | Ad valorem tariff |
| B. | Specific tariff |
| C. | Effective tariff |
| D. | Compound tariff |
| Answer» B. Specific tariff | |
| 46. |
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 |
| Answer» E. | |
| 47. |
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 |
| Answer» D. redistribution effect and consumption effect | |
| 48. |
A tariff ______ increase a country overall welfare? |
| A. | will always |
| B. | will never |
| C. | can sometimes |
| D. | None of the above |
| Answer» D. None of the above | |
| 49. |
A tariff of ________ would be prohibitive causing imports to fall to zero? |
| A. | $10 |
| B. | $15 |
| C. | $20 |
| D. | $25 |
| Answer» C. $20 | |
| 50. |
A tariff can _______ raise a country’s welfare? |
| A. | never |
| B. | sometimes |
| C. | always |
| D. | None of these |
| Answer» C. always | |