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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

If the income elasticity of demand for a good is negative it must be ?
A an elastic good
B an inferior good
C a normal good
D a luxury good
Correct Answer: an inferior good
If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?
A price inelastic
B none of these
C unit price elastic
D price elastic
Correct Answer: price elastic
Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
A increase total revenue to farmers as a whole because the demand for food is elastic
B increase total revenue to farmers as whole because the demand for food is inelastic
C reduce total revenue to farmers as a whole because the demand for food is elastic
D reduce total revenue to farmers as a whole because the demand for food is inelastic
Correct Answer: reduce total revenue to farmers as a whole because the demand for food is inelastic
A decrease in supply (shift to the left) will increase total revenue in that market if ?
A demand is price inelastic
B supply is price elastic
C supply is price inelastic
D demand is price elastic
Correct Answer: demand is price inelastic
If a supply curve for a good is price elastic then ?
A the quantity supplied is sensitive to changes in the price of that good
B That quantity demanded is insensitive to changes in the price of that good
C the quantity demanded is sensitive to changes in the price of that good
D the quantity supplied is incentive to changes in the price of that good
Correct Answer: the quantity supplied is sensitive to changes in the price of that good
The demand for which of the following is likely to be the most price inelastic ?
A transportation
B taxi rides
C bus tickets
D airline tickets
Correct Answer: transportation
in general a flatter demand curve is more likely to be ?
A price elastic
B none of these answers
C unit price elastic
D price inelastic
Correct Answer: price inelastic
The price elasticity of demand is defined as ?
A the percentage change in the quantity demanded divided by the percentage change in income.
B the percentage change in income divided by the percentage change in the quantity demanded
C the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
D none of these answers
Correct Answer: the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
If consumers think that there are very few substitutes for a good, then ?
A Supply would tend to be price elastic
B none of these answers
C demand would tend to be price inelastic
D demand would tend to be price elastic
Correct Answer: demand would tend to be price inelastic
If demand is linear (a straight line) then price elasticity of demand is ?
A elastic in the upper portion and inelastic in the lower portion
B inelastic in the upper portion and elastic in the lower portion
C inelastic throughout
D constant along the demand curve
Correct Answer: elastic in the upper portion and inelastic in the lower portion
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