M C Q s D r i v e

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.

The marginal propensity to consume is equal to ?
A Total spending / total consumption
B Total consumption / total income
C change in consumption / change in income
D Change in consumption / change in savings
Correct Answer: Total spending / total consumption
Lower interest rates are likely to ?
A Decrease consumption
B increase cost of borrowing
C Encourage saving
D Increase spending
Correct Answer: increase cost of borrowing
As income increase ?
A The average propensity to consume gets nearer in value of the marginal propensity to consume
B The average propensity to consume diverges in value from the marginal propensity to consume
C The average propensity to consume falls
D The average propensity to consume always approaches 0
Correct Answer: The average propensity to consume falls
An increase in the marginal propensity to consume will ?
A increase the size of the multiplier
B Increase the marginal propensity to save
C Decrease national income
D Reduce injections into the economy
Correct Answer: Increase the marginal propensity to save
When an economy first begins to grow more slowly ?
A GDP increase
B Inflation is likely to increase
C Stock levels are likely to increase
D Investment in equipment is likely to increase
Correct Answer: Stock levels are likely to increase
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
A 0.8
B 800
C 810
D 0.81
Correct Answer: 0.8
Economic growth can be seen by an outward shift of ?
A The Production Possibility Frontier
B The Gross Domestic Barrier
C The Marginal Consumption Frontier
D The Minimum Efficient Scale
Correct Answer: The Minimum Efficient Scale
Labour Productivity measures ?
A The output per worker
B The output per machine
C Total output
D Marginal output
Correct Answer: Marginal output
In a recession, GDP ?
A Grows negatively
B Grows slowly
C Grows by 0%
D Grows rapidly
Correct Answer: Grows by 0%
Economic growth can be measured by ?
A The CPI
B The CBI
C GDP
D MPC
Correct Answer: The CPI