Business Economics MCQs [set-8]

176. The origin of protectionist policy can be traced back to _ __.

A. Free trade era
B. Mercantilists days
C. Globalisation period
D. Brettonwoods system
Answer: B

177. Infant Industry Argument is justified for _ .

A. Protecting old industries
B. For enabling competitive efficiency of industries
C. For strengthening public sector
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D. For allowing free trade . c
Answer: B
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178. Pick out the wrong statement.
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A. Tariffs are primarily levied to earn revenue.

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B. Tariffs are levied to protect domestic industries.
C. Tariffs reduce the prices of the commodity on which it is levied.
D. Tariffs affect the income and employment.
Answer: C

179. Pick out the wrong statement.

A. Tariffs restrict trade
B. Import quotas have a direct effect in reducing imports
C. Voluntary export restraint is an example of tariff barriers.
D. An export subsidy is a government grant given to an export firm.
Answer: C

180. Economic integration means.

A. Application of tariffs
B. Removal of customs duties
C. Banning the movement of goods and services
 D. banning trade
Answer: B

181. _ is the highest form of economic integration.

A. Preferential trading system
B. Free trade union
C. Customs union
D. Economic union
Answer: D

182. The European Economic Community (EEC) was founded in 1957 under the
treaty of _.
A. Paris
B. Rome
C. Washington
D. Veraiiles
Answer: B

183. Pick out the feature which does not describe European Union.
A. Common currency
B. Elimination of customs duties on the movement of goods.
C. Independent policies for agriculture among member nations.
D. Creation of a European Social Fund to improve employment opportunities of workers.
Answer: C

184. European union was initially formed with _ European countries.

A. 27
B. 28
C. 6
D. 5
Answer: C

185. Prime Minister _ announced the government’s intention that U.K. will not
seek permanent membership of the European single market or the EU customs
union after leaving the EU.
A. David Cameroon
B. Trump

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 C. Narendra Modi
D. Theresa May
Answer: D

186. The referendum for Brexit was held on _ .

A. July 1st 2017
B. June 23rd 2016
C. September 1, 2017
D. July 23rd 2016
Answer: B

187. The full form of ASEAN is _ .

A. Association of South East African Nations
B. Association of South Europe Allied Nations
C. Association of South East Asian Nations
D. Association oS Southern,eastern European Nations
Answer: C

188. ASEAN was formed with the signing of _.

A. European declaration
B. American declaration
C. Asean declaration
D. Bangkok declaration
Answer: D

189. Pick out the wrong statement.

A. The objective of ASEAN is to achieve economic, political, social and cultural co- operation
among its members.
B. U.K. is a member of ASEAN
C. There will be free movement of goods and services within ASEAN
D. ASEAN FTA will improve business competitiveness between the members.
Answer: B

190. The objective of commercial policy is / are _.

A. increase trade relation
B. endanger domestic market
C. allow import of goods

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 D. Restrict exports
Answer: D

191. Under free trade _ benefit more.

A. consumer
B. agents
C. middlemen
D. traders
Answer: A

192. Under free trade __ will be higher.

A. wages
B. trade wars
C. civil wars
D. restrictions
Answer: A

193. Free trade is based on the principle of _ _ .

A. Comparative cost advantage
B. Comparative disadvantage
C. Production possibility advantage
D. Equal cost
Answer: A

194. Which of the following is not an argument for protectionism .

A. to protect infant industries
B. to increase the level of imports
C. to protect small industries
D. to improve the balance of payments
Answer: B

195. A tariff is a tax on _ _ .

A. domestic goods and services
B. foreign goods and service
C. quality of goods
D. None of the above
Answer: B

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196. Protectionism
A. increase the quality of imports
B. decrease the government revenue
C. increase the government earnings from tax
D. decrease the government earnings from tax
Answer: C

197. Which of the following is an argument far free trade _ .

A. prevents monopolies
B. unfavourable terms of trade
C. unfavourable balance of payments
D. allows monopolies
Answer: A

198. The main objective of trade barriers are _.

A. to discourage new industries domestically
B. to reduce unnecessary imports
C. to spend valuable foreign exchange
D. To allow free trade
Answer: D

199. _ is a type of tariff barriers.

A. Embargo
B. Ad–valorem duties
C. Product standard
D. Consular Formalities
Answer: B

200. _ _ is a type of non – tariff barriers.

A. Import Quotas
B. Export duties
C. Import Duties
D. Specific Duties
Answer: A

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