Economics MCQs

A. To protect infant industries
B. To increase the level of imports
C. To protect strategic industries
D. To improve the balance of payments

A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage

A. Comparative advantage is achieved
B. Price elasticity of imports is unity and tariff revenue is maximized
C. Import prices are the same as export prices
D. Marginal social cost equals marginal social benefit

A. Common market
B. Free trade area
C. Customs union
D. Federation

A. Its opportunity costs; world opportunity costs
B. Export prices; import prices
C. Value of exports; value of imports
D. Its currency; other currencies

A. The price of goods when they leave the producing country
B. A limit on the quantity of a good that can be imported into a country
C. A tax on imports
D. A government payment to encourage exports

A. Side payments
B. Tariffs
C. Subsidies
D. Export quotas

A. Ricardo malthus theorem
B. Heckscher ohlin theorem
C. Lucas-laffer theorem
D. Friedman samuelson theorem

A. Absolute advantage
B. Mutual advantage
C. Multilateral advantage
D. Comparative advantage

A. Provide benefits for all producers and consumers
B. Increase the nation’s aggregate income
C. Reduce unemployment for all domestic workers
D. Ensure that industries can operate at less than full capacity