Top 80+ Solved Introductory Economics 2 MCQ Questions Answer
Q. If factor cost is greater than Market price, then it means that:
a. indirect taxes > subsidies
b. indirect taxes = subsidies
c. indirect taxes < subsidies
d. indirect taxes = and > subsidies
Q. Final goods refer to those goods which are used either for ............. or for ..........
a. consumption, investment
b. consumption, resale
c. resale, investment
d. resale,further production.
Q. Net Factor Income from Abroad is:
a. export minus imorts
b. visible exports minus visible imports
c. factor income received from abroad minus factor income paid abroad
d. factor income received from abroad
Q. Depreciation means:
a. destruction of a plant in a fire accident
b. loss of fixed assets over time due to wear and tear
c. loss of fixed assets in an earthquake
d. closure of the plant due to lockout
Q. Non-exclusion principle is related to:
a. private goods
b. public goods
c. merit goods
d. mixed goods 20.
Q. Incidence of tax means:
a. direct money burden
b. indirect money burden
c. actual tax burden
d. none of these
Q. Which is the tax shifting
a. to bear the tax burden himself
b. to shift the tax burden on others
c. to bear some part of the tax himself and shift the rest on others
d. none of these
Q. The equity principle of taxation was propounded by:
a. adam smith
b. dalton
c. j.b. say
d. marshall
Q. International trade refers to trade between
a. two regions of a country
b. two countries
c. two commodities produced in different countries
d. non of the above
Q. Under a fixed exchange rate system, ____________________are official changes in the valueof a country's currency relative to other currencies.
a. devaluation
b. depreciation and appreciation
c. revaluation
d. both a and c
Q. __________ is the deliberate downward adjustment in the official exchange rate, reduces thecurrency's value.
a. devaluation
b. depreciation
c. revaluation
d. appreciation.