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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

When marginal revenue equals marginal cost ?
A Total revenue equals total cost
B There is the biggest positive difference between total revenue and total cost
C There is the biggest negative difference between total revenue and total cost
D Profits are Zero
Correct Answer: There is the biggest negative difference between total revenue and total cost
To maximise growth without making a loss a firm should produce the highest output where ?
A Average revenue equals marginal cost
B Average revenue equals average cost
C Marginal revenue equals marginal cost
D Average cost equals marginal cost
Correct Answer: Marginal revenue equals marginal cost
If the price elasticity is -0.3 this means ?
A Demand is upward sloping
B Demand is price elastic
C A price fall would increase revenue
D Demand is price inelastic
Correct Answer: Demand is upward sloping
In Price discrimination abnormal profits are made if ?
A Average revenue is greater than average variable cost
B Average revenue is greater than average cost
C Average revenue is greater than marginal revenue
D Average revenue is greater than average fixed cost
Correct Answer: Average revenue is greater than marginal revenue
A benefit to consumers of price discrimination is that ?
A Some products are produced that would not otherwise be produced
B Producer surplus increases
C Consumer surplus decreases
D Firm’s profits increase
Correct Answer: Consumer surplus decreases
If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
A The higher price in market A
B The higher price in market B
C The same Price in both markets
D Cannot tell which price will be higher
Correct Answer: The same Price in both markets
Which best describes price discrimination ?
A Charging different prices for different products
B Charging the same prices for different products
C Charging the same prices for same products
D Charging different prices for the same products
Correct Answer: Charging the same prices for different products
Price equals ?
A Total revenue – quantity
B Total revenue / quantity sold
C Total quantity sold quantity sold
D Total revenue / total cost
Correct Answer: Total revenue / quantity sold
Total revenue equals ?
A Price plus quantity
B Price multiplier by quantity sold
C Price divided by the quantity sold
D Price minus quantity sold
Correct Answer: Price divided by the quantity sold
According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A aggregate supply will increase , aggregate demand will decrease
B aggregate supply will increase, aggregate output will increase and the price level will decrease
C aggregate supply will increase aggregate output will increase and the price level will increase
D both aggregate supply and demand will increase and the price level will increase
Correct Answer: aggregate supply will increase , aggregate demand will decrease
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