Answer the following mcq

Just write answers

(no need of explanation)

1. Which of the following is NOT a benefit of trade?

a. Consumers enjoy increased variety of goods

b. Producers sell to a larger market and may achieve lower costs through economies of scale

c. Competition from abroad may reduce market power of some firms, which would increase total welfare

d. Trade reduces countries' comparative advantage

2. What is a public good?

a. Excludable and rival

b. Not excludable and not rival

c. Rival and not excludable

d. Excludable and not rival

3. If demand curve for a product moves to the right, and a different product's price decreases, we can conclude:

a. Good 1 and 2 are substitutes

b. Good 1 and 2 are complements

c. Good 1 is inferior good, Good 2 is superior good

d. Both goods and inferior goods

4. You have PKR 10,000 in the bank, with an interest rate of 5%. You do not touch it for two years. What will be the amount in your account?

a. PKR 11,000

b. PKR 1,000

c. PKR 11,025

d. PKR 500

5. Consider the following when Production = 0, then

a. FC = 0 AND VC = 0

b. FC = 0 AND VC > FC

c. VC = 0 AND FC > VC

d. VC = 0 AND FC > VC

6. ) If the elasticity is elastic (E>1) which relationship is observed between the price and total revenue (TR)?

a. If the elasticity is elastic (E>1) the negative relationship between the price and the revenue is observed; i.e. If E>1 and P decreases then TR increases.

b. If E>1 and P increases then TR increases so its negative relationship.

c. If E>1 and P increases then TR decreases, resulting in a positive relationship between P and Q.

d. If E>1 and P increases then TR decreases, resulting in an incorrect relationship between P and Q.