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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.

Which of the following is not part of the opportunity cost of going on holiday ?

A The money you spent on a theater show

B The money you could have made if you had stayed at home and worked

C The money you spend on airline tickets

D the money you spent on food

Review Detailed Answer

Correct Answer: the money you spent on food

An increase in the price of beef providers information which ?

A provides no information because prices in a market system are managed by planning boards.

B tells consumers to buy less pork

C tells producers to produce more beef.

D tells consumers to buy more beef.

Review Detailed Answer

Correct Answer: tells producers to produce more beef.

High and persistent inflation is caused by ?

A unions increasing wages too much

B OPEC raising the price of oil too much

C governments increasing the quantity of money too much

D regulations raising the cost of production too much

Review Detailed Answer

Correct Answer: unions increasing wages too much

Which of the following statements is true about a market economy ?

A With a large enough computer, central planners could guide production more efficiently than markets.

B Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

C The strength of a market system is that it tends to distribute resources evenly across consumers.

D Taxes help prices communicate costs and benefits to producers and consumers.

Review Detailed Answer

Correct Answer: Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

Which of the following products would be least capable of producing an externality ?

A inoculations against disease

B cigarettes

C food

D education

Review Detailed Answer

Correct Answer: food

-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?

A Fewer students will take degree courses in education and more will take accounting courses.

B fewer students will take degree courses in education and more will take accounting courses

C fewer students will attend university

D None of these

Review Detailed Answer

Correct Answer: fewer students will take degree courses in education and more will take accounting courses

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ?

A nothing because you found the money.

B Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

C Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game.

D Rs20 (because you could have used the Rs20 to buy other ghings)

Review Detailed Answer

Correct Answer: Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

A rational person does not act unless ?

A the action is ethical

B The action produces marginal costs that exceed marginal benefits.

C The action produces marginal benefits that exceed marginal costs.

D The action makes money for the person.

Review Detailed Answer

Correct Answer: The action produces marginal benefits that exceed marginal costs.

Trade-offs are required because wants are unlimited, and resources are ?

A economical

B unlimited

C Efficient

D Scarce

Review Detailed Answer

Correct Answer: Scarce

Which one of the following is a normative statement ?

A The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent

B Inflation is rising

C The proportion of people’s income paid in taxes is higher under this government than under the previous one.

D Inequality in the distribution of income is a more serious problem than unemployment

Review Detailed Answer

Correct Answer: Inequality in the distribution of income is a more serious problem than unemployment

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Which of the following is not part of the opportunity cost of going on holiday ?

An increase in the price of beef providers information which ?

High and persistent inflation is caused by ?

Which of the following statements is true about a market economy ?

Which of the following products would be least capable of producing an externality ?

-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ?

A rational person does not act unless ?

Trade-offs are required because wants are unlimited, and resources are ?

Which one of the following is a normative statement ?