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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 demand is price inelastic ?

A An increase in price must raise profits

B An increase in price decrease revenue

C An increase in price increase revenue

D A decrease in price reduces sales

Review Detailed Answer

Correct Answer: An increase in price increase revenue

The price elasticity of demand is a negative number this means ?

A Demand is price elastic

B Demand is price inelastic

C The demand curve is downward sloping

D An increase in income will reduce the quantity demanded

Review Detailed Answer

Correct Answer: The demand curve is downward sloping

If the cross elasticity of demand is -2 ?

A The products are substitutes and demand is cross price elastic

B The products are substitutes and demand is cross price inelastic

C The products are complements and demand is cross price elastic

D The products are complements and demand is cross price inelastic

Review Detailed Answer

Correct Answer: The products are complements and demand is cross price elastic

The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

A The price elasticity of demand is -2

B The good is inferior

C Income elasticity is + 0.5

D Income elasticity is + 2

Review Detailed Answer

Correct Answer: The price elasticity of demand is -2

If a product is an inferior good ?

A Demand is inversely related to income

B Demand in inversely related to price

C Demand is directly related to price

D Demand is inversely related to the price of substitutes

Review Detailed Answer

Correct Answer: Demand is inversely related to income

An increase in price all other things unchanged leads to ?

A Shift demand outwards

B Shift demand inwards

C A contractions of demand

D An extension of demand

Review Detailed Answer

Correct Answer: A contractions of demand

An increase in income should ?

A Shift demand for an inferior product outward

B shift demand for an inferior product inward

C shift supply for an inferior product outward

D Shift supply for an inferior product inward

Review Detailed Answer

Correct Answer: shift demand for an inferior product inward

According to the law of diminishing utility ?

A Utility is at a maximum with the first unit

B Increasing units of consumption increase the marginal utility

C Marginal product will fall as more units are consumed

D Total utility will rise at a falling rate as more units are consumed

Review Detailed Answer

Correct Answer: Total utility will rise at a falling rate as more units are consumed

A fall in price ?

A Will cause an inward shift of demand

B Will cause an outward shift of supply

C May be caused by a fall in demand

D Leads to a higher level of production

Review Detailed Answer

Correct Answer: May be caused by a fall in demand

When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as ?

A Quantity setting

B price fixing

C price rationing

D quantity adjustment.

Review Detailed Answer

Correct Answer: price rationing

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

if demand is price inelastic ?

The price elasticity of demand is a negative number this means ?

If the cross elasticity of demand is -2 ?

The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

If a product is an inferior good ?

An increase in price all other things unchanged leads to ?

An increase in income should ?

According to the law of diminishing utility ?

A fall in price ?

When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as ?