Description : The effective rate of protection (a). distinguishes between tariffs that are effective and those that are ineffective (b). is the minimum level at which a tariff becomes effective in ... in value added for domestic production that a particular tariff structure makes possible, in percentage terms
Last Answer : d). shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms
Description : .A tariff that is levied as a fixed charge per unit of imports is known as a (a) Specific tariff (b) Ad- valorem tariff © Import tariff (d) Export tariff.
Last Answer : a) Specific tariff
Description : Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.
Last Answer : (b) gains from specialization and gains from exchange.
Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward
Last Answer : (a) the price of one good changes
Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.
Last Answer : (a) Higher aggregate demand.
Description : Specific tariffs are collected as (a) Fixed amount of money per unit traded (b) A percentage of the price of the product © A percentage on the quantity of imports (d) All of the above.
Last Answer : (a) Fixed amount of money per unit traded
Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left
Last Answer : (a) quantity demanded to decrease
Description : Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.
Last Answer : © General Equilibrium.
Description : A tariff can---raise a country’s welfare (a) sometimes (b) always © never (d) none of the above
Last Answer : a) sometimes
Description : Tariff is a----- (a) Quantitative restrictions on import. (b) Tax on import. © License on import. (d) Both (b) and (c).
Last Answer : (b) Tax on import.
Description : A tariff------ (a) Increases the volume of trade. (b) Reduces the volume of trade. © Has no effect on the volume of trade. (d) Both (a) and (c).
Last Answer : (b) Reduces the volume of trade.
Description : A supply function expresses the relationship between - (1) price and output (2) price and selling cost (3) price and demand (4) price and consumption
Last Answer : (1) price and output Explanation: The supply function expresses the relationship between the Lotal quantily supplied and the price received by all suppliers per unit of time, holding other factors constant. It illustrates the relation between price and supply.
Description : A supply function expresses the relationship between (1) price and output (2) price and selling cost (3) price and demand (4) price and consumption
Last Answer : price and output
Description : A government’s restriction on the quantity of imports of a country is known as (a) Export quota (b) Import quota © Import rent. (d) Embargo.
Last Answer : (b) Import quota
Description : Measures to reduce imports will (a) Boost injections into an economy. (b) Reduce injections from an economy. © Boost withdrawals into aneconomy. (d) Reduce withdrawals from an economy.
Last Answer : (d) Reduce withdrawals from an economy.
Description : . Terms of trade is (a) the ratio of imports / exports (b) the ratio of exports/imports © the ratio of goods/services (d) the ratio of land/labour
Last Answer : (b) the ratio of exports/imports
Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.
Last Answer : (b) Level of income.
Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.
Last Answer : (d) Increase borrowing and spending.
Description : An increase in marginal propensity to consume will (a) Lead to the consumption function becoming steeper. (b) Shift the consumption function upwards. © Shift the consumption function downwards. (d) Shift the savings function upwards.
Last Answer : d) Lead to the consumption function becoming steeper.
Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).
Last Answer : (a) Increase in consumption due to one unit increase in income.
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite
Last Answer : (a) equal to zero
Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite
Last Answer : (b) positive
Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer
Last Answer : (b) price of that commodity
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : Trade Gap means A. Gap between total GDP and total consumption B. Gap between total imports and total exports C. Gap between available liquidity and expected demand in next five months D. Gap between budgeted revenue collection and actual collection of the same E. None of the above
Last Answer : B. Gap between total imports and total exports Explanation: The amount by which the value of a country‘s visible imports exceeds that of visible exports; an unfavourable balance of trade.
Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease
Last Answer : (b)will necessarily increase
Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier
Last Answer : (d) Multiplier
Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.
Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : Reduction of consumption consequent to a rise in prices
Description : A tariff is: A. Restriction on the number of export firms B. Limit on the amount of imported goods C. Taxation on imports D. (b) and (c) as mentioned above
Last Answer : Taxation on iTaxation on importsmports
Description : Which of the following is not a benefit of international trade? (a) Lower domestic prices (b) Development of more efficient methods of production © A wider selection of products for domestic consumers (d) High wage levels for all domestic workers.
Last Answer : The theory of comparative cost advantage is given by
Description : Which of the following is not an export (a) sales of domestic cars abroad (b) purchase of foreign components © students from abroad studying in your country (d) sales of financial services.
Last Answer : (b) purchase of foreign components
Description : What is tariff? Why is it imposed on goods? -SST 10th
Last Answer : Tariff is a tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.
Description : What is a tariff? Why is it imposed on goods? -SST 10th
Last Answer : A tariff is a tax imposed on goods when they are moved across a political boundary.Mostly, they are imposed on imported commodities. Tariffs are imposed on goods (i) To protect infant industries of the home country. (ii) To prevent the dumping of foreign countries. (iii) A source of revenue.
Description : Full convertibility of a rupeee means - (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply Explanation: The full convertibility of the Indian currency means ... governmental control. Presently, the issue of capital account convertibility is in the discussion stage.
Description : Full convertibility of a rupeee means (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Description : In autarky equilibrium (a) production=consumption. (b) export=import © there is no trade (d) all of the above.
Last Answer : (a) production=consumption.
Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases
Last Answer : d) The average propensity to consume increases as income increases
Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.
Last Answer : © Change in consumption/ Change in income
Description : If the Keynesian consumption function is, C=10+.8Y, if income is Rs 1000/- what is total consumption. (a) Rs .8/- (b) Rs 800/- © Rs 810/- (d) Rs .81/
Last Answer : © Rs 810/-
Description : Assume that the consumption function is of the form, C= 50+.8Y. If income is Rs 1000/- then consumption is,- (a) Rs 50/- 9b) Rs 1050/- © Rs 50/- (d) Rs 850/-
Last Answer : (d) Rs 850/-
Description : An increase in foreign income generally leads to: a) increased exports, increased domestic output b) decreased exports, increased domestic output c) decreased exports, decreased domestic output d) increased exports, decreased domestic output
Last Answer : a) increased exports, increased domestic output Foreign income is brought by exports and leads to further exports in future, and increased exports means increase in domestic output to meet the demand of exports.
Description : Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.
Last Answer : (b) outside
Description : Total revenue is maximum when elasticity of demand is (a) 3 (b) 1 © 0 (d) 0.5
Last Answer : (b) 1
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : Classical economists’ neglects---- side in their theories. (a) demand (b) supply © savings (d) investment
Last Answer : (a) demand
Description : In a boom (a) Unemployment is likely to fall. (b) Prices are likely to fall © Demand is likely to fall
Last Answer : (a) Unemployment is likely to fall.