Business Economics Set 8

Bachelor of Business Administration (BBA)

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This set of Business Economics Multiple Choice Questions & Answers (MCQs) focuses on Business Economics Set 8

Q1 | The origin of protectionist policy can be traced back to _ __.
  • Free trade era
  • Mercantilists days
  • Globalisation period
  • Brettonwoods system
Answer: Mercantilists days
Q2 | Infant Industry Argument is justified for _ .
  • Protecting old industries
  • For enabling competitive efficiency of industries
  • For strengthening public sector
  • For allowing free trade
Answer: For enabling competitive efficiency of industries
Q3 | Pick out the wrong statement.
  • Tariffs are primarily levied to earn revenue.
  • Tariffs are levied to protect domesticindustries.
  • Tariffs reduce the prices of the commodity on which it is levied.
  • Tariffs affect the income and employment.
Answer: Tariffs reduce the prices of the commodity on which it is levied.
Q4 | Pick out the wrong statement.
  • Tariffs restrict trade
  • Import quotas have a direct effect in reducing imports
  • Voluntary export restraint is an example of tariff barriers.
  • An export subsidy is a government grant given to an export firm.
Answer: Voluntary export restraint is an example of tariff barriers.
Q5 | Economic integration means.
  • Application of tariffs
  • Removal of customs duties
  • Banning the movement of goods and services
  • banning trade
Answer: Removal of customs duties
Q6 |     _ is the highest form of economic integration.
  • Preferential trading system
  • Free trade union
  • Customs union
  • Economic union
Answer: Economic union
Q7 | The European Economic Community (EEC) was founded in 1957 under the treaty of _.
  • Paris
  • Rome
  • Washington
  • Veraiiles
Answer: Rome
Q8 | Pick out the feature which does not describe European Union.
  • Common currency
  • Elimination of customs duties on the movement of goods.
  • Independent policies for agriculture among member nations.
  • Creation of a European Social Fund to improve employment opportunities of workers.
Answer: Independent policies for agriculture among member nations.
Q9 | European union was initially formed with _ European countries.
  • 27
  • 28
  • 6
  • 5
Answer: 6
Q10 | 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.
  • David Cameroon
  • Trump
  • Narendra Modi
  • Theresa May
Answer: Theresa May
Q11 | The referendum for Brexit was held on _ .
  • July 1st 2017
  • June 23rd 2016
  • September 1,2017
  • July 23rd 2016
Answer: June 23rd 2016
Q12 | The full form of ASEAN is _ .
  • Association of South East African Nations
  • Association of South Europe Allied Nations
  • Association of South East Asian Nations
  • Association oS Southern,eastern European Nations
Answer: Association of South East Asian Nations
Q13 | ASEAN was formed with the signing of _.
  • European declaration
  • American declaration
  • Asean declaration
  • Bangkok declaration
Answer: Bangkok declaration
Q14 | Pick out the wrong statement.
  • The objective of ASEAN is to achieve economic,political, social and cultural co- operation among its members.
  • U.K. is a member of ASEAN
  • There will be free movement of goods and services within ASEAN
  • ASEAN FTA will improve business competitiveness between the members.
Answer: U.K. is a member of ASEAN
Q15 | The objective of commercial policy is / are    _ .
  • increase trade relation
  • endanger domestic market
  • allow import of goods
  • Restrict exports
Answer: Restrict exports
Q16 | Under free trade _ benefit more.
  • consumer
  • agents
  • middlemen
  • traders
Answer: consumer
Q17 | Under free trade __ will be higher.
  • wages
  • trade wars
  • civil wars
  • restrictions
Answer: wages
Q18 | Free trade is based on the principle of _ _ .
  • Comparative cost advantage
  • Comparative disadvantage
  • Production possibility advantage
  • Equal cost
Answer: Comparative cost advantage
Q19 | Which of the following is not an argument for protectionism .
  • to protect infant industries
  • to increase the level of imports
  • to protect small industries
  • to improve the balance of payments
Answer: to increase the level of imports
Q20 | A tariff is a tax on _ _ .
  • domestic goods and services
  • foreign goods and service
  • quality of goods
  • None of the above
Answer: foreign goods and service
Q21 | Protectionism                       
  • increase the quality of imports
  • decrease the government revenue
  • increase the government earnings from tax
  • decrease the government earnings from tax
Answer: increase the government earnings from tax
Q22 | Which of the following is an argument far free trade _ .
  • prevents monopolies
  • unfavourable terms of trade
  • unfavourable balance of payments
  • allows monopolies
Answer: prevents monopolies
Q23 | The main objective of trade barriers are    _ .
  • to discourage new industries domestically
  • to reduce unnecessary imports
  • to spend valuable foreign exchange
  • To allow free trade
Answer: To allow free trade
Q24 |     _ is a type of tariff barriers.
  • Embargo
  • Ad–valorem duties
  • Product standard
  • Consular Formalities
Answer: Ad–valorem duties
Q25 |     _ _ is a type of non – tariff barriers.
  • Import Quotas
  • Export duties
  • Import Duties
  • Specific Duties
Answer: Import Quotas
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