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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.

If the price of good is equal to the equilibrium price ?

A there is a shortage and the price will fall

B the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

C there is surplus and the price will rise

D there is a shortage and the price will rise

Review Detailed Answer

Correct Answer: the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

Which of the following shifts the demand for watches to the right ?

A an increase in the price of watches

B none of these answers

C a decrease in the price of watch batteries if watch batteries and watches are complements

D a decrease in consumer incomes if watches are a normal good

Review Detailed Answer

Correct Answer: none of these answers

If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?

A a normal good

B none of these answers

C an inferior good

D a substitute good

Review Detailed Answer

Correct Answer: an inferior good

The law of demand states that an increases in the price of a good ?

A None of these answers

B decreases the quantity supplied of that good

C decreases the quantity demanded for that good

D increases the quantity supplied of that good

Review Detailed Answer

Correct Answer: decreases the quantity supplied of that good

A perfectly competitive market has ?

A firms that set their own prices

B only one seller.

C at least a few sellers.

D many buyers and sellers.

Review Detailed Answer

Correct Answer: many buyers and sellers.

Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?

A externality

B market imperfection

C deadweight burden

D free rider

Review Detailed Answer

Correct Answer: free rider

A good example of a public good is ?

A public transport

B the national health service

C national defence

D rail transport

Review Detailed Answer

Correct Answer: national defence

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?

A a production externality

B a second-best solution

C transaction costs

D a consumption externality

Review Detailed Answer

Correct Answer: a consumption externality

In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?

A moral hazard

B risk aversion

C adverse selection

D a poor gamble

Review Detailed Answer

Correct Answer: adverse selection

In Nash equilibrium each player chooses the best strategy ?

A Assuming other players move first

B dominated by the other players

C given the strategies of other players

D that is a credible threat

Review Detailed Answer

Correct Answer: given the strategies of other players

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If the price of good is equal to the equilibrium price ?

Which of the following shifts the demand for watches to the right ?

If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?

The law of demand states that an increases in the price of a good ?

A perfectly competitive market has ?

Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?

A good example of a public good is ?

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?

In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?

In Nash equilibrium each player chooses the best strategy ?