M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Economics Mcqs 4423 MCQs [All-Courses]

thumb


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

A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
A Keynesians
B post-keynesians
C monetarists
D new classical school
Correct Answer: new classical school
New classical theories were an attempt to explain ?
A how unemployment could have persisted for so long during the Great Depression
B The increase in the growth rate of real output in the 1950s
C the stagflation of the 1970s
D Why policy changes that are perceived as permanent have more of an impact on a person’s behaviour than policy changes that are viewed as temporary.
Correct Answer: the stagflation of the 1970s
If the demand for money depends on the interest rate the velocity of circulation is ?
A not constant and the quantity theory of money does hold.
B constant and the quantity theory of money does hold.
C not constant and the quantity theory of money does not hold.
D constant and the quantity theory of money does not hold.
Correct Answer: not constant and the quantity theory of money does not hold.
The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?
A the fallacy of composition
B negative entropy.
C hysteresis.
D ceteris paribus
Correct Answer: hysteresis.
The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
A consistently overestimate the actual rate of inflation in the future.
B are always correct
C consistently underestimate the actual rate of inflation in the future
D are correct on average, but are subject to errors that are distributed randomly
Correct Answer: are correct on average, but are subject to errors that are distributed randomly
Rapid increase in the price level during periods of recession of high unemployment are known as ?
A slump
B inflation
C stagflation
D stagnation
Correct Answer: stagflation
The government increase government spending to try to reduce unemployment This is an example of ?
A laissez-faire.
B monetary policy
C fine tuning
D automatic stablisers
Correct Answer: fine tuning
Keynesian economics became popular because it was able to explain ?
A stagflation in the late 1970s
B demand-pull inflation in the 1960s
C low growth rates in the 1950s
D The prolonged existence of high unemployment during the Great depression
Correct Answer: The prolonged existence of high unemployment during the Great depression
According to the classical economists the economy ?
A requires fine tuning to reach full employment
B can never deviate from full employment
C will never be at full employment
D is self-correcting.
Correct Answer: is self-correcting.
Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?
A market prices
B sticky prices
C fixed prices
D regulatory prices
Correct Answer: sticky prices
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.