All Free Agriculture MCQs with Answers

• A. Steep slope
• B. Downward slope
• C. Positive slope
• D. None

Explanation: A downward-sloping production possibility curve shows that producing more of one good requires sacrificing some of another.

• A. Trade off
• B. Trade deficit
• C. Trade surplus
• D. None

Explanation: A trade surplus occurs when the value of exports exceeds the value of imports. The reverse situation is called a trade deficit.

• A. Speculation
• B. Spillover
• C. Specializing
• D. All

Explanation: Speculation involves buying or selling an asset with the expectation of benefiting from a later price change.

• A. Allocative efficiency
• B. Productive efficiency
• C. Less than full use of resources
• D. Unattainable levels of output

Explanation: Every point on the production possibility curve represents productive efficiency because available resources are fully employed with…

• A. Theoretical
• B. Positive
• C. Normative
• D. None

Explanation: Normative economics examines what the economy ought to be like and therefore involves judgments about desirability or policy.

• A. None
• B. Real cost
• C. Economic cost
• D. Opportunity cost

Explanation: Opportunity cost is the value of the next-best alternative that must be sacrificed to obtain a good.

• A. The curve gets steeper as we move downward
• B. The marginal benefit decreases as more of a good is consumed
• C. In reflects the law of increasing opportunity cost
• D. Resources are scarce

Explanation: A concave production possibility curve reflects increasing opportunity cost: as production shifts toward one good, progressively larger…

• A. Theoretical economics
• B. Normative economics
• C. Positive economics
• D. factual economics

Explanation: Positive economics focuses on objective, testable statements about what is happening and avoids judgments about what should happen.

• A. Macroeconomic
• B. Normative economic
• C. Positive economic
• D. Micro economic

Explanation: Microeconomics studies individual economic units or small parts of the economy, such as a household, firm, or particular market.

• A. Profit sharing plan
• B. Labour saving scheme
• C. Labour laws
• D. Profit maximizing plan

Explanation: A profit-sharing plan gives employees a portion of the firm's profits in addition to or instead of fixed wages.

• A. Resource market
• B. Product market
• C. Consumer market
• D. None

Explanation: The product market is where firms sell goods and services and households buy them for consumption.

• A. None
• B. Resource Market
• C. Product Market
• D. Market

Explanation: A market is any institution or arrangement that brings buyers and sellers together to exchange goods, services, or resources.

• A. Value added
• B. Value of money
• C. Vertical range
• D. None

Explanation: Value added is the firm's selling value minus the value of intermediate goods and services purchased from other firms.

• A. Inflation rate
• B. Unemployment rate
• C. Deflation rate
• D. None

Explanation: The unemployment rate is calculated as unemployed people divided by the labour force, usually expressed as a percentage.

• A. Tax
• B. Tariff
• C. Transfer payment
• D. Subsidy

Explanation: A transfer payment is money or goods provided by government without a directly received good or service, such as certain welfare payments.

• A. Tax
• B. Tariff
• C. Tacit collusion
• D. Subsidy

Explanation: A tax is a compulsory payment to government for which the payer receives no specific good or service directly.

• A. Pure capitalism
• B. Command Economy
• C. Closed economy
• D. Open economy

Explanation: Pure capitalism is based on private ownership of resources and the use of markets and prices to coordinate economic decisions.

• A. Firm
• B. Plant
• C. Factory
• D. None

Explanation: A plant is the physical establishment where production or related operations take place, whereas a firm is the business organization that…

• A. Max price
• B. Floor price
• C. Ceiling price
• D. None

Explanation: A ceiling price is a legally imposed maximum price, usually intended to protect consumers from excessive prices.

• A. Foreign exchange market
• B. International market
• C. Money market
• D. All of these

Explanation: The foreign exchange market is where the currency of one country is exchanged for the currency of another.