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.

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

Correct Answer: elastic in the upper portion and inelastic in the lower portion

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If the income elasticity of demand for a good is negative it must be ?

If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?

A decrease in supply (shift to the left) will increase total revenue in that market if ?

If a supply curve for a good is price elastic then ?

The demand for which of the following is likely to be the most price inelastic ?

in general a flatter demand curve is more likely to be ?

The price elasticity of demand is defined as ?

If consumers think that there are very few substitutes for a good, then ?

If demand is linear (a straight line) then price elasticity of demand is ?