Micro Economics MCQ (GK Set-1) with Answers

Consumer surplus from the good will decrease.

Producer surplus from the good will decrease.

The quantity imported will fall.

The deadweight loss will be less than the total fall in surplus.

The total consumer plus producer surplus decreases.

The price for consumers rises from the pre-tariff situation by the amount of the tariff

If other countries do not retaliate, the country may be better off.

If other countries do not retaliate, the country may be worse off.

To soften the fall of declining industries.

To protect industries from competition from low wage countries.

To protect industries from dumping.

To nurture infant industries by protecting them from cheaper imports.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

Over 150 countries belong to the World Trade Organisation.

If a country joins a customs union, it may do less trade with non-members than it did previously

A single market requires the removal of barriers to the movement of labour.

Members of a free trade area agree to have uniform tariffs on imports from non-members.