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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 Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

A have few substitutes.

B are normal goods

C have few complementary goods.

D have many complementary goods.

Review Detailed Answer

Correct Answer: are normal goods

If both marginal cost and marginal revenue increase, a firm ?

A Should increase output

B Should reduce output

C will require further information on how to respond

D Should not change output

Review Detailed Answer

Correct Answer: will require further information on how to respond

A firm that breaks even after all economic costs are paid is earning ?

A Economic profit

B Accounting profit

C Normal profit

D Supernormal profit

Review Detailed Answer

Correct Answer: Normal profit

If a firm wage costs increase this will cause and ?

A marginal cost to increase, output to fall

B marginal revenue to increase output to fall

C opportunity cost to increase the firm will close

D average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output

Review Detailed Answer

Correct Answer: marginal cost to increase, output to fall

Profits are maximized when ?

A costs are minimized

B revenue is maximized

C average cost is less than average revenue

D marginal cost equals marginal revenue

Review Detailed Answer

Correct Answer: marginal cost equals marginal revenue

The increase in total cost when one more unit is produced is known as ?

A marginal cost

B opportunity cost

C limited cost

D average cost

Review Detailed Answer

Correct Answer: average cost

Adding up the quantities demanded of a good by different people facing the same price gives us the ?

A Supply curve

B Market demand curve

C Demand curve

D Market supply curve

Review Detailed Answer

Correct Answer: Market demand curve

Economics assumes that people consume goods and services to achieve ?

A Status

B Prestige

C Utility

D Self-esteem

Review Detailed Answer

Correct Answer: Utility

The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?

A increase quantity demanded, reduce quantity demanded

B increase quantity demanded, increases quantity demanded

C reduce quantity demanded, reduce quantity demanded

D reduce quantity demanded, increase quantity demanded

Review Detailed Answer

Correct Answer: reduce quantity demanded, reduce quantity demanded

Inferior goods have _ and luxury goods have _?

A negative income elasticity income elasticity greater than 1

B income elasticity greater than 1, negative income elasticities

C Positive income elasticities, negative income elasticities

D None of the above

Review Detailed Answer

Correct Answer: negative income elasticity income elasticity greater than 1

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

If both marginal cost and marginal revenue increase, a firm ?

A firm that breaks even after all economic costs are paid is earning ?

If a firm wage costs increase this will cause and ?

Profits are maximized when ?

The increase in total cost when one more unit is produced is known as ?

Adding up the quantities demanded of a good by different people facing the same price gives us the ?

Economics assumes that people consume goods and services to achieve ?

The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?

Inferior goods have _ and luxury goods have _?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

If both marginal cost and marginal revenue increase, a firm ?

A firm that breaks even after all economic costs are paid is earning ?

If a firm wage costs increase this will cause __________ and __________?

Profits are maximized when ?

The increase in total cost when one more unit is produced is known as ?

Adding up the quantities demanded of a good by different people facing the same price gives us the ?

Economics assumes that people consume goods and services to achieve ?

The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?

Inferior goods have _________ and luxury goods have _________?

If a firm wage costs increase this will cause and ?

The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?

Inferior goods have _ and luxury goods have _?