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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.

Which of the following is an example of price floor ?

A the minimum wage

B rent controls

C restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre

D All of these answers are price floors

Review Detailed Answer

Correct Answer: the minimum wage

Which side of the market is more likely to lobby government for a price floor ?

A the buyers

B Neither buyers nor sellers desire a price floor.

C the sellers

D Both buyers and sellers desire a price floor.

Review Detailed Answer

Correct Answer: the sellers

A price floor ?

A always determines the price at which a good must be sold

B sets a legal maximum on the price at which a good can be sold

C is not a binding constraint if it is set above the equilibrium price

D sets a legal minimum on the price at which a good can be sold

Review Detailed Answer

Correct Answer: sets a legal minimum on the price at which a good can be sold

A binding price ceiling creates?

A a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price

B a surplus

C a shortage

D an equilibrium

Review Detailed Answer

Correct Answer: a shortage

For which of the following products would the burden of a tax likely fall more heavily on the sellers ?

A Clothing

B food

C housing

D entertainment

Review Detailed Answer

Correct Answer: entertainment

The burden of a tax falls more heavily on the buyers in a market when ?

A both supply and demand are inelastic

B demand is elastic, and supply are inelastic

C both supply and demand are elastic

D demand is inelastic, and supply is elastic

Review Detailed Answer

Correct Answer: demand is inelastic, and supply is elastic

The burden of a tax falls more heavily on the sellers in a market when ?

A both supply and demand are elastic

B both supply and demand are inelastic

C demand is inelastic and supply in elastic

D demand is elastic, and supply is inelastic

Review Detailed Answer

Correct Answer: demand is elastic, and supply is inelastic

Which of the following takes place when a tax is placed a good ?

A a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold

B an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold

C a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold

D an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold

Review Detailed Answer

Correct Answer: an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold

Within the supply and demand model, a tax collected from the buyers of a good shifts the ?

A supply curve downward by the size of the tax per unit.

B Supply curve upward by the size of the tax per unit

C demand curve upward by the size of the tax per unit.

D demand curve downward by the size of the tax per unit

Review Detailed Answer

Correct Answer: demand curve downward by the size of the tax per unit

Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?

A A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.

B A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.

C There will be a shortage of petrol

D There will be surplus of petrol

Review Detailed Answer

Correct Answer: A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

Which of the following is an example of price floor ?

Which side of the market is more likely to lobby government for a price floor ?

A price floor ?

A binding price ceiling creates?

For which of the following products would the burden of a tax likely fall more heavily on the sellers ?

The burden of a tax falls more heavily on the buyers in a market when ?

The burden of a tax falls more heavily on the sellers in a market when ?

Which of the following takes place when a tax is placed a good ?

Within the supply and demand model, a tax collected from the buyers of a good shifts the ?

Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?