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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

An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
A worse off; worse off
B better off; better off
C better off; worse off
D equal, unequal
Correct Answer: better off; worse off
Moral hazard means that the act of insuring ____ that the desired outcome will occur?
A reduces the likelihood
B increases the likelihood
C guarantees
D none of the above
Correct Answer: increases the likelihood
A dominant strategy is ?
A a wining strategy
B a losing strategy
C a players best strategy when moving first
D a player’s best strategy whatever the strategies adopted by rivals
Correct Answer: a player’s best strategy whatever the strategies adopted by rivals
The prisoners Dilemma Game demonstrates that ?
A players are better of to act independently
B monopoly is better than competition
C people will always cheat
D players are better off if they co-operate
Correct Answer: players are better off if they co-operate
The reason for the kinked demand curve is that ?
A The oligopolist believes that competitors will match output increase but not output reduction
B The oligopolist believes that competitors will match price increase but not output reduction
C The oligopolist believers that competitors will match price cuts but not price rises
D The oligopolist believes that competitors will match price increase but not output increase
Correct Answer: The oligopolist believers that competitors will match price cuts but not price rises
A natural monopoly has a declining _______ over a large range of output?
A long run marginal cost
B short run marginal cost
C long run average cost
D long run marginal cost
Correct Answer: long run average cost
A monopoly may be self-perpetuating because profits may be used for ?
A research
B cost-saving
C technical advance
D all of the above
Correct Answer: all of the above
Comparing a monopoly and competitive firm, the monopolist will ?
A produce less at a lower price
B produce more at a lower price
C produce less at a higher price
D produce less at a lower price
Correct Answer: produce less at a higher price
Where a tax can be shifted, the incidence depends on ?
A Whether there is perfect or imperfect information
B elasticities of demand and supply
C how many producers there are:
D who is legally obliged to pay the tax
Correct Answer: elasticities of demand and supply
Tax incidence is the ?
A behaviour of shifting the tax to another party.
B structure of the tax
C ultimate distribution of a tax’s burden.
D measure of the impact the tax has on employment and output
Correct Answer: ultimate distribution of a tax’s burden.
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