Economics & Trade Terms MCQs with Answers

Raw materials that are remaining at the end of the reporting period are treated as ?

• A.Current assets
• B.Fixed assets
• C.Current liabilities
• D.Revenue expenditure

The market structure of monopoly is characterized by?

• A.A single firm producing a good that lacks close substitutes
• B.Many firms producing identical products
• C.A few large firms dominating the market
• D.Many firms producing differentiated products

In financial terms, what does RIO stand for?

• A.Return on Investment
• B.Revenue Income Output
• C.Risk and Interest Obligation
• D.None of these

VAT stands for?

• A.Value Adjustment Tariff
• B.Variable Assessment Tax
• C.Voluntary Asset Tax
• D.Value Added Tax

If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using?

• A.Contractionary Fiscal Policy
• B.Expansionary Fiscal Policy
• C.Monetary Policy
• D.Supply-Side Policy

When both the demand and the supply curves shift to the right due to any reason then?

• A.Quantity traded increases for sure but nothing could be said about prices
• B.Price increases for sure but nothing could be said about quantity
• C.Both price and quantity increase for sure
• D.Price decreases for sure but nothing could be said about quantity

Who is considered the founder of Microeconomics?

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

Total revenue equals?

• A.Price times quantity
• B.Price plus quantity
• C.Price minus cost
• D.Total cost divided by quantity

Past Paper MCQ

'Laissez-Faire' means _?

• A.Government ownership of resources
• B.State control over all industries
• C.Mixed economy with partial regulation
• D.Non-interference of state in economy

Which of the following is a tool of fiscal policy?

• A.Exchange rate management
• B.Interest rate adjustments
• C.Open market operations
• D.Government spending