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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

A inferior effect

B normal effect

C substitution effect

D complementary effect

Review Detailed Answer

Correct Answer: substitution effect

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

A X to point Y

B X to point Z

C Y to point X

D Z to point X

Review Detailed Answer

Correct Answer: X to point Y

Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

A Z

B X

C Y

D the optimal point cannot be determined from this graph

Review Detailed Answer

Correct Answer: Z

If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

A a complementary good

B an inferior good

C a normal good

D a substitute good

Review Detailed Answer

Correct Answer: a normal good

Which of the following statements is not true with regard to the standard properties of indifference curves ?

A Indifference curves are downward sloping

B indifference curves are bowed outward

C Indifference curves do not cross each other

D Higher indifference curve is preferred to lower ones

Review Detailed Answer

Correct Answer: indifference curves are bowed outward

uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

A 2

B 10

C 1/2

D 5

Review Detailed Answer

Correct Answer: 2

indifference curves for perfect substitutes are ?

A right angles

B bowed outward

C straight lines

D nonexistent

Review Detailed Answer

Correct Answer: straight lines

The limit on the consumption bundles that a consumer can afford is known as ?

A an indifference curve

B the budget constraint

C the marginal rate of substitution

D the consumption limits

Review Detailed Answer

Correct Answer: the budget constraint

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

Which of the following statements is not true with regard to the standard properties of indifference curves ?

indifference curves for perfect substitutes are ?

The limit on the consumption bundles that a consumer can afford is known as ?