Economics & Trade Terms MCQs with Answers

The sacrifice involved when you choose a particular course of action is called?

• A.Marginal Cost
• B.Opportunity Cost
• C.Sunk Cost
• D.Fixed Cost

The Solow Growth Model predicts that?

• A.Poor nations will grow faster than rich nations
• B.Rich nations will grow faster than poor nations
• C.All nations will grow at the same rate
• D.Economic growth is unrelated to capital accumulation

To use national economy and national resources in a better way is called _?

• A.Monetary Policy
• B.Fiscal Policy
• C.Economic Planning
• D.Privatization

In production theory, the short run is a period?

• A.During which all resources are variable
• B.During which at least one resource is fixed
• C.During which no production takes place
• D.That is always less than one year

Which of the reason(s) is/are responsible for inflation in Pakistan?

• A.Increase in money supply
• B.Rise in production costs
• C.High import prices and currency depreciation
• D.All of these

Direct taxes are not included in _?

• A.Income Tax
• B.Wealth Tax
• C.Sales Tax
• D.Corporate Tax

The natural rate of unemployment is?

• A.The unemployment rate when there is zero cyclical unemployment
• B.The unemployment rate during a severe recession
• C.The unemployment rate that exists when the economy is at full employment
• D.The unemployment rate that includes only frictional unemployment

Past Paper MCQ

What is the term used when no tariffs are imposed on all imports and exports?

• A.Subsidy
• B.Protectionism
• C.Embargo
• D.Free Trade

The idea of "comparative advantage" was coined by?

• A.Adam Smith
• B.David Ricardo
• C.John Maynard Keynes
• D.Alfred Marshall

If demand function for good X is given by X^D = 1500 - 1.3P_x - 1.8P_y + 2M then we know that:

• A.Goods X and Y are complements to each other
• B.Goods X and Y are substitutes to each other
• C.Good X is an inferior good
• D.Good X is a Giffen good