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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

If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
A Saving = Rs 300 investment = Rs 300
B Saving = Rs 200 investment = Rs 100
C Saving = Rs 100 investment = Rs 200
D Saving = Rs 0 investment = Rs 0
Correct Answer: Saving = Rs 0 investment = Rs 0
Which of the following statements is true ?
A Long-term bonds tend to pay less interest than short-term bonds
B Government bonds pay less interest than comparable corporate bounds
C Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund
D A stock index is a directory used to locate information about selected stocks.
Correct Answer: Government bonds pay less interest than comparable corporate bounds
A financial intermediary is a middleperson between ?
A buyers and sellers
B husbands and wives.
C borrowers and lenders.
D labor unions and firms
Correct Answer: borrowers and lenders.
Which of the following is an example of equity finance ?
A Corporate bonds
B Company shares
C All of these answers are equity finance
D Government bonds
Correct Answer: Company shares
A shift is demand will have more effect on price than quantity if ?
A The price elasticity of supply is price inelastic
B The price elasticity of supply is price elastic
C The price elasticity of supply is perfectly elastic
D The price elasticity of supply is infinity
Correct Answer: The price elasticity of supply is infinity
Which best describes consumer surplus ?
A The price consumers are willing to pray for a unit
B The cost of providing a unit
C The profits made by a firm
D The difference the price a consumer pays for an item and the price he/she is willing to pay
Correct Answer: The difference the price a consumer pays for an item and the price he/she is willing to pay
A movement along the supply curve may be caused by ?
A A change in technology
B A change in the number of producers
C A shift in demand
D A change in costs
Correct Answer: A shift in demand
A movement along the demand curve may be caused by ?
A A change in income
B A change in the number of buyers
C A change in advertising
D A shift in supply
Correct Answer: A shift in supply
Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
A An fall in demand
B An increase in supply
C improvements in production technology
D An increase in demand
Correct Answer: An increase in demand
A reduction in the costs of production will ?
A Lead to a movement along the supply curve
B Shift the demand curve
C Shift the supply curve
D Lead to an extension of supply
Correct Answer: Shift the supply curve
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