Economics Questions with solutions MCQs

1. What does “consumer sovereignty” in a free market economy refer to?

A

The government`s ability to control consumer preferences.

B

Producer`s decision about production of goods and services based on their preferences.

C

Consumer preferences guide the production of goods and services.

D

Consumers and producers equally share the decision-making process.

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Correct Answer : C
Explanation :

<span style="box-sizing: inherit; font-weight: 700; color: rgb(51, 65, 85); font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif; font-size: 14.592px;">Ans: (C) Consumer preferences guide the production of goods and services.</span><span></span>

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2.  Government strategy regarding exporters and importers is called

A

Commercial Policy

B

Monetary Policy

C

Fiscal Policy

D

Finance Policy

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Correct Answer : A
Explanation :

<p>The correct answer is: <strong>commercial policy</strong>.</p> <hr> <p><strong>Explanation:</strong></p> <ul> <li> <p><strong>Commercial Policy</strong> refers to the government`s strategy and regulations related to <strong>exports and imports</strong>, including tariffs, trade restrictions, and incentives.</p> </li> <li> <p>It governs how a country manages its trade with other nations.</p> </li> </ul> <p>The other options:</p> <ul> <li> <p><strong>Monetary Policy:</strong> Deals with money supply, interest rates, and banking.</p> </li> <li> <p><strong>Fiscal Policy:</strong> Relates to government revenue (taxation) and expenditure.</p> </li> <li> <p><strong>Finance Policy:</strong> Broad term often related to government financial management, but not specifically trade.</p> </li> </ul> <p>So, for exporters and importers, the <strong>commercial policy</strong> is the relevant government strategy.</p>

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3. Due date of a bill exchange drawn on 30th January 2011 for one month will be _____

A

5th March 2011

B

3rd March 2011

C

29th February 2011

D

4th March 2011

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Correct Answer : B
Explanation :

<span><div>To calculate the due date of a bill of exchange drawn on January 30, 2011, for one month, we follow these steps:</div><div><br></div><div>1. **Calculate one month from January 30, 2011.**&nbsp;</div><div>&nbsp; &nbsp;- One month from January 30 is February 28, 2011, because February only has 28 days in 2011 (not a leap year).</div><div><br></div><div>2. **Add the grace period.**&nbsp;</div><div>&nbsp; &nbsp;- In many financial transactions, a grace period of 3 days is typically added to the due date.</div><div><br></div><div>So, adding the 3-day grace period to February 28, 2011, we get:</div><div><br></div><div>February 28 + 3 days = March 3, 2011.</div><div><br></div><div>Therefore, the due date of the bill of exchange drawn on January 30, 2011, for one month is **March 3, 2011**.</div></span>

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