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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

The difference between gross investment and net investment is ?
A depreciation of the existing capital stock
B productive investment
C dwellings
D inventories
Correct Answer: depreciation of the existing capital stock
The value of an asset depends upon ?
A its scrap values
B its depreciation
C the present value of the future stream of income it can earn
D the cost of loans
Correct Answer: the present value of the future stream of income it can earn
If workers get a real wage increase this will likely ____ and _____?
A encourage the use of more capital in the long run, reduce demand for all inputs
B encourage the use of more capital increase demand for all inputs
C encourage the use of less capital reduce demand for all inputs
D encourage the use of less capital, reduce demand for all inputs
Correct Answer: encourage the use of less capital reduce demand for all inputs
Different capital intensity in different industries is mainly explained by _______ and ________?
A wage differentials, skill levels
B technology, the ease of factor substitution
C government grants, international competition
D patents, skill shortages
Correct Answer: technology, the ease of factor substitution
The functional distribution of income shows how national income is divided between ?
A employees
B the population
C the factors of production
D the working population
Correct Answer: the factors of production
Land will be allocated between competing uses so that ?
A housing gets priority
B industry gets priority
C farming gets priority
D the equilibrium rental rate equilibrium total demand with supply
Correct Answer: the equilibrium rental rate equilibrium total demand with supply
In the short run, the supply of capital is ________ and in the long run will depend on _______?
A variable, technology
B fixed, expectations
C fixed, rental rate of capital
D variable, interest rates
Correct Answer: fixed, rental rate of capital
The marginal revenue product of capital is the ?
A change in a company’s balance sheet when it acquires new plant
B additional value of output from using more capital
C change in company’s share price
D changing value of the capital stock
Correct Answer: additional value of output from using more capital
the cost of using capital services is the ?
A wage rate of capital
B interest charges
C marginal capital cost
D rental rate for capital
Correct Answer: rental rate for capital
Efficiency wages are ____ that raise _____?
A low wages, employment
B high wages, labor supply
C high wages, productivity
D high wages, employment
Correct Answer: high wages, productivity
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