Economics & Trade Terms MCQs with Answers

A profit maximizing firm under perfect competition will produce?

• A.Only at the point where MP is maximum
• B.Always in the range where MP is diminishing
• C.Only where MP is rising
• D.Where MP is zero

The difference between the Gross value added and Net value added is?

• A.Factor income from abroad
• B.Subsidies
• C.Indirect taxes
• D.Depreciation

Which of the following taxes is referred to as a "tariff"?

• A.Tax on income
• B.Tax on import
• C.Tax on property
• D.Tax on sales

The biggest challenge Pakistan's economy in 2022-23 was?

• A.Rising inflation
• B.Low foreign reserves
• C.Political instability
• D.Energy crisis

Who advocated the theory of laissez faire?

• A.David Ricardo
• B.John Maynard Keynes
• C.Karl Marx
• D.Adam Smith

In financial terms, what does IRR represent?

• A.Internal Rate of Return
• B.International Reserve Ratio
• C.Incremental Revenue Rate
• D.Indexed Return Rate

What is called a Tax on imports and exports?

• A.Excise Duty
• B.Custom Duty
• C.Sales Tax
• D.Income Tax

All profit-maximizing firm will hire more labour up to the point where the?

• A.Total revenue equals total cost of production
• B.Marginal revenue product of labour exceeds the wage rate
• C.Average cost of labour equals the average revenue of the firm
• D.Last unit of labour adds equally to total revenue and total cost

What does MMA stand for?

• A.Money Market Account
• B.Mutual Monetary Agreement
• C.Major Market Allocation
• D.Monetary Management Authority