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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

A shift in demand will have more effect on price than quantity if ?
A The price elasticity of supply is + 3
B The price elasticity of supply is + 0.2
C The price elasticity of supply is + 2
D The price elasticity of supply is infinity
Correct Answer: The price elasticity of supply is + 2
The price mechanism does not act as a ?
A Signal
B Incentive
C Rationing device
D Indicator of income
Correct Answer: Indicator of income
The price mechanism cannot ?
A Act as a signal
B Act as a incentive
C Act as a rationing device
D shift the demand curve
Correct Answer: shift the demand curve
A subsidy paid to producers ?
A Shifts the supply curve
B shifts the demand curve
C Leads to a contractions in supply
D Leads to an extension of supply
Correct Answer: Shifts the supply curve
If the price was fixed below the equilibrium price there would be ?
A Excess supply
B Excess demand
C Equilibrium
D Downward pressure on prices
Correct Answer: Excess demand
A shift in supply will have a bigger effect on price than output if demand is ?
A income elastic
B income inelastic
C Price elastic
D Price inelastic
Correct Answer: Price inelastic
An increase in income will ?
A Lead to a movement along the demand curve
B Shift the supply curve
C Shift the demand curve
D Lead to an extension of demand
Correct Answer: Shift the demand curve
An inferior good is one for which an increase in income causes a(n) ?
A decrease in supply
B increase in demand
C increase in supply
D decrease in demand
Correct Answer: decrease in demand
Which of the following statements is true about the impact of an increase in the price of lettuce ?
A Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall
B The supply of lettuce will decrease
C The demand for lettuce will decrease
D The equilibrium price and quantity of salad dressing will fall
Correct Answer: The equilibrium price and quantity of salad dressing will fall
If the price of good is below the equilibrium price ?
A there is a shortage and the price will rise
B the quantity demanded is equal to the quantity supplied and the price remains unchanged
C there is a shortage and the price will fall
D there is a surplus and the price will rise
Correct Answer: there is a shortage and the price will rise
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