Top 250+ Solved Business Economics MCQ Questions Answer

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Q. Free trade is based on the principle of _ _ .

a. Comparative cost advantage

b. Comparative disadvantage

c. Production possibility advantage

d. Equal cost

  • a. Comparative cost advantage

Q. Which of the following is not an argument for protectionism .

a. to protect infant industries

b. to increase the level of imports

c. to protect small industries

d. to improve the balance of payments

  • b. to increase the level of imports

Q. A tariff is a tax on _ _ .

a. domestic goods and services

b. foreign goods and service

c. quality of goods

d. None of the above

  • b. foreign goods and service

Q. Protectionism                       

a. increase the quality of imports

b. decrease the government revenue

c. increase the government earnings from tax

d. decrease the government earnings from tax

  • c. increase the government earnings from tax

Q. Which of the following is an argument far free trade _ .

a. prevents monopolies

b. unfavourable terms of trade

c. unfavourable balance of payments

d. allows monopolies

  • a. prevents monopolies

Q. The main objective of trade barriers are    _ .

a. to discourage new industries domestically

b. to reduce unnecessary imports

c. to spend valuable foreign exchange

d. To allow free trade

  • d. To allow free trade

Q.     _ is a type of tariff barriers.

a. Embargo

b. Ad–valorem duties

c. Product standard

d. Consular Formalities

  • b. Ad–valorem duties

Q.     _ _ is a type of non – tariff barriers.

a. Import Quotas

b. Export duties

c. Import Duties

d. Specific Duties

  • a. Import Quotas

Q. An international trading company of the Government of India _.

a. State Transport Corporation

b. State Service Corporation

c. State Trading Corporation

d. All of the above

  • c. State Trading Corporation

Q. Consular documents include _ _.

a. Certificate of origin

b. Export certificates

c. Uncertified consular invoices

d. Bills of exchange

  • a. Certificate of origin

Q. Trade barriers are often called _ _.

a. Free trade

b. Protection

c. Trade wars

d. Economic integration

  • b. Protection

Q. Redistribution effect is called _ .

a. Revenues effect

b. Consumption effect

c. Productive effect

d. Transfer effect

  • d. Transfer effect

Q. Imposing of tariff, raises domestic prices causing fall in consumption of domestic goods is    _ .

a. Protective effect

b. Revenue effect

c. Consumption effect

d. Terms of trade effect

  • c. Consumption effect

Q. _ _ is the World’s largest single market area.

a. European Union

b. India

c. Pakisthan

d. Srilanka

  • a. European Union

Q. At present, European Union consist of    _ member countries.

a. 26

b. 27

c. 28

d. None of these above

  • c. 28
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