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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

In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?
A an increase in average total costs
B diseconomies of scale
C economies of scale
D constant returns to scale
Correct Answer: economies of scale
If marginal costs equal average total costs ?
A average total cost is falling
B average total cost is raising
C average total cost is maximized
D average total cost is minimized
Correct Answer: average total cost is minimized
Which of the following is a variable cost in the short run ?
A rent on the factory
B wages paid to factory labor
C interest payments on borrowed financial capital
D payments on the lease for factory equipment
Correct Answer: wages paid to factory labor
If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
A is liner (a straight line)
B could be any of these answers
C becomes steeper as the quantity of output increases
D become flatter as the quantity of output increases.
Correct Answer: becomes steeper as the quantity of output increases
If there are implicit costs of production ?
A accounting profit will exceed economic profit
B economic profit will always be zero
C economic profit will exceed accounting profit
D accounting profit will always be zero
Correct Answer: accounting profit will exceed economic profit
Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?
A Rs30,000
B Rs35,000
C Rs75,000
D Rs70,000
Correct Answer: Rs75,000
Accounting profit is equal to total revenue minus ?
A implicit costs
B variable costs
C the sum of implicit and explicit costs.
D explicit costs.
Correct Answer: explicit costs.
The emigration of highly-skilled people from the developing countries is known as ?
A The brain drain
B human capital deterioration
C productivity
D labor degradation
Correct Answer: The brain drain
Simon S.Kuznets argues that the major stock of an economically advanced country is not its physical capital but ?
A natural resources
B body of knowledge
C land
D quantity of labor
Correct Answer: body of knowledge
Which of the following is Not True about education in LDCs ?
A Public expenditure per student for higher education is about ten times as high as for primary education
B The expansion of primary education redistributes benefits from the rich to the poor
C Economists unanimously agree that LDCs should put greater priority on primary education
D Boys are sent to schools far more often than girls
Correct Answer: Economists unanimously agree that LDCs should put greater priority on primary education
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