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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

With a positive externality ?
A There is under-consumption in the free market
B There is over consumption in the free market
C The government may tax to decrease production
D Society could be made off it less was produced
Correct Answer: There is under-consumption in the free market
When supply increase in an agricultural market farmer’s earning might fall because ?
A Supply is price elastic
B Demand is price inelastic
C The government buys up all the excess production
D All output must be sold at a maximum price
Correct Answer: Demand is price inelastic
Merit goods are ?
A Not provided in the free market economy
B Under provided in the free market economy
C Over provided in the free market economy
D Provided free
Correct Answer: Under provided in the free market economy
If the price in a market is fixed by the government below equilibrium ?
A There is excess equilibrium
B There is excess supply
C There is excess demand
D There is equilibrium
Correct Answer: There is excess demand
A public good will ?
A Be under provided in the free market
B Be over provided in the free market
C Not be provided in the free market
D Has no opportunity cost
Correct Answer: Not be provided in the free market
An increase in demand for a product should ?
A Increase equilibrium price and quantity
B Decrease equilibrium price and quantity
C Increase equilibrium price and decrease quantity
D Decrease equilibrium price and increase quantity
Correct Answer: Decrease equilibrium price and increase quantity
A shift in supply 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 – 3
Unions tend to increase the disparity in pay between insiders and outsiders by ?
A increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector
B Increasing the demand for workers in the Unionized sector
C decreasing the demand for workers in the Unionized sector
D Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector
Correct Answer: Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector
Union might increase efficiency in the case Where they ?
A Raise the wage for insiders above the competitive equilibrium
B Lower the wage of local outsiders
C Offset the market power of a large firm that is the dominant employer in a region
D Threaten a strike but don’t actually follow through so there are not lost hours of work
Correct Answer: Offset the market power of a large firm that is the dominant employer in a region
If, for any reason the wage is held above the competitive equilibrium wage?
A The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
B Unions will likely Strike and the wage will fall to equilibrium
C The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
D The quality of workers in the applicant pool will tend to fall
Correct Answer: The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
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