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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

Supply side policies are most appropriate to cure ?
A Involuntary unemployment
B Cyclical unemployment
C Voluntary unemployment
D A fall in aggregate demand
Correct Answer: A fall in aggregate demand
If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
A There will be equilibrium in the labour market
B There will excess demand in the labour market
C There will be excess supply in the labour market
D More people will be employed
Correct Answer: There will be equilibrium in the labour market
In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
A The average cost of labour
B The marginal product
C The marginal revenue
D The total cost of labour
Correct Answer: The total cost of labour
Demand for labour is more likely to be wage inelastic if ?
A Wages are a small proportion of total costs
B Demand for the final product is price elastic
C It is easy to replace labour
D Capital is a good substitute for labour
Correct Answer: Wages are a small proportion of total costs
A decrease in the supply of labour is likely to lead to ?
A A lower equilibrium wage and lower quantity of labour
B A lower equilibrium wage and higher quantity of labour
C A higher equilibrium wage and higher quantity of labour
D A higher equilibrium wage and lower quantity of labour
Correct Answer: A higher equilibrium wage and lower quantity of labour
The Marginal Revenue Product is likely to be wage inelastic if ?
A Labour costs are a high percentage of total costs
B Demand for the final product is price inelastic
C It is relatively easy to substitute capital for labour
D There are many substitutes for the final product
Correct Answer: There are many substitutes for the final product
IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
A Frictional Unemployment would fall
B The official unemployment rate would probably understate true unemployment
C The official unemployment rate would probably overstate true unemployment
D There would be no impact on the official unemployment rate
Correct Answer: The official unemployment rate would probably overstate true unemployment
Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
A Unemployment due to unions
B Unemployment due to efficiency wages
C Frictional Unemployment
D Unemployment due to minimum-wage laws
Correct Answer: Frictional Unemployment
Which of the following statements about efficiency wage theory is true ?
A Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities
B Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law
C Paying the lowest possible wage is always the most efficient (Profitable)
D Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
Correct Answer: Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
Some frictional Unemployment is inevitable because ?
A of minimum wage laws
B There are changes in the demand for labour among different firms.
C Of unions
D All of these answers
Correct Answer: There are changes in the demand for labour among different firms.
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