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Economics Mcqs 4423 MCQs [All-Courses]

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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.

All Topics  4423

Which of the following activities is most likely to produce an externality?
A A student eats a hamburger in the student union.
B A student reads a novel for pleasure
C A student sits at home and watches T.V
D A student has a party in her room in the student hall of residence.
Correct Answer: A student has a party in her room in the student hall of residence.
Foreign trade ?
A increase the scarcity of resources.
B makes a country more equitable.
C allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
D None of these
Correct Answer: allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
Raising taxes and increasing welfare payments ?
A reduces market power
B Proves that there is such a thing as a free lunch
C improves efficiency at the expense of equity.
D improves equity at the expense of efficiency.
Correct Answer: improves equity at the expense of efficiency.
Economics is the study of ?
A how society manages its unlimited resource
B how to reduce our wants until we are satisfied.
C how to fully satisfy our unlimited wants
D how to avoid having to make trade-offs
Correct Answer: how to reduce our wants until we are satisfied.
Which of the following involves a trade – off ?
A Taking a nap
B All of these answers involve trade-offs
C Watching a football game on Saturday afternoon
D Going to university
Correct Answer: All of these answers involve trade-offs
In a planned or command economy, all the economics decisions are taken by the ?
A Consumers
B voters
C government
D Workers
Correct Answer: government
The circular flow of goods and incomes shows the relationship between?
A Wages and salaries.
B income and money
C goods and services.
D
Correct Answer: income and money
A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?
A capital consumption frontier.
B Lorenz curve.
C Circular-flow diagram.
D Production possibility curve.
Correct Answer: Production possibility curve.
The concept of opportunity cost ?
A is relevant only for a capitalist economy like the United States.
B Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.
C Suggests all our wants can be achieved.
D Would be relevant if we eliminated poverty
Correct Answer: Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.
A recession is ?
A a period of declining prices.
B a period of declining unemployment
C a period during which aggregate output declines.
D a period of very rapidly declining prices.
Correct Answer: a period during which aggregate output declines.
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