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Government can sometime improves market outcomes MCQs – Mock Test 75 PDF Download

MCQ 371: The relationship between productivity and policy makers are:

  1. inversely related
  2. no relationship
  3. positively related
  4. slightly related

MCQ 372: The concept that relates a country with a higher capital-per worker has a lower capital/labor ratio in exports than in imports is known as:

  1. factor endowment
  2. factor intensity
  3. factor abundance
  4. Leontief paradox

MCQ 373: When there is continuous negative trade balance and local currency rapidly losing its values, then the government levies:

  1. export quota
  2. import quota
  3. ad valorem tariff
  4. specific rate

MCQ 374: Taxes discourages prices as well the decisions that are being made by:

  1. households
  2. sellers
  3. buyers
  4. central planners

MCQ 375: The curve that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed is known as:

  1. isoquant
  2. indifference curve
  3. gains from trade
  4. production possibility curve

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