Economics & Trade Terms MCQs with Answers

Business through the internet is called?

• A.E-Learning
• B.E-Banking
• C.E-Governance
• D.E-Commerce

Which of the following does not involve in the study of microeconomics?

• A.Individual consumer behavior
• B.Firm production decisions
• C.Economic aggregates
• D.Price determination in a market

Theory of comparative advantage was presented by?

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

According to classical economic theory, a decrease in the money supply would?

• A.Have no effect on the price level
• B.Increase the price level in the economy
• C.Lower the price level in the economy
• D.Increase employment in the economy

A tax on imports, exports or consumption goods is called?

• A.Tariff
• B.Duty
• C.Excise
• D.Subsidy

If the household consumes along the budget constraint where MUx/Px > MUy/Py then assuming normal preferences, we are sure that?

• A.The household could increase his total utility by consuming more of X and less of Y
• B.The household is maximizing total utility at the current consumption bundle
• C.The household could increase his total utility by consuming more of Y and less of X
• D.The household has exhausted his budget and cannot reallocate spending

Past Paper MCQ

What is the term used when the stock market is rising?

• A.Bearish
• B.Stagnant
• C.Bullish
• D.Volatile

If the elasticity of demand for a product is -0.5, this means that:

• A.Demand is perfectly elastic
• B.Demand is elastic
• C.Demand is inelastic
• D.Demand is unit elastic

Total output produced in a country by its own resources as well as foreign resources called ?

• A.NDP
• B.GNP
• C.NNP
• D.GDP

Which of the following is the main function of commerce?

• A.To enforce trade restrictions and tariffs
• B.To manufacture goods on a large scale
• C.To regulate monetary policy of a country
• D.To facilitate exchange of goods and services