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Economics Mcqs

If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

Economics Mcqs, Surplus /
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

A. the value placed on the last unit of production by buyers exceeds the cost of production
B. the cost of production on the last unit produced exceeds the value placed on it by buyers.
C. consumer surplus is maximized
D. total surplus is maximized
E. producer surplus is maximized

If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ? Read More »

Economics Mcqs, Surplus

Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

Economics Mcqs, Surplus /
Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

A. Three vases will be sold, and consumer surplus is Rs80
B. One vase will be sold, and consumer surplus is Rs5.
C. One vase will be sold, and consumer surplus is Rs30.
D. Three vases will be sold, and consumer surplus is Rs0.
E. Two vases will be sold, and consumer surplus is Rs5.

Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ? Read More »

Economics Mcqs, Surplus

If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

Economics Mcqs, Surplus /
If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

A. Rs18,000
B. Rs20,000
C. Rs2,000
D. Rs0.

If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ? Read More »

Economics Mcqs, Surplus

Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

Economics Mcqs, Tariffs /
Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

A. Progressive and thus bear down on the wealthy
B. regressive and thus bear down on the poor
C. proportional and thus bear down on all consumers in the same manner
D. deflationary and thus result in reductions in the price of imports

Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ? Read More »

Economics Mcqs, Tariffs

Concerning a government’s trade policy, all the following generally apply except ?

Economics Mcqs, Tariffs /
Concerning a government’s trade policy, all the following generally apply except ?

A. economic downturn and recession generally result in greater protectionism
B. because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:
C. When domestic exporting companies are organized, policy tends to favor freer trade
D. Policy tends to favor freer trade in countries whose imports are inputs into critical industries

Concerning a government’s trade policy, all the following generally apply except ? Read More »

Economics Mcqs, Tariffs

Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?

Economics Mcqs, Tariffs /
Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?

A. be less than 12 percent and can be negative
B. be less than 12 percent but must be greater than zero
C. equal 6 percent
D. exceed 30 percent

Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ? Read More »

Economics Mcqs, Tariffs

Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen’s value, this is an example of a (an) ?

Economics Mcqs, Tariffs /
Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen’s value, this is an example of a (an) ?

A. specific tariff
B. ad valorem tariff
C. compound tariff
D. effective tariff

Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen’s value, this is an example of a (an) ? Read More »

Economics Mcqs, Tariffs