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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

Supply is likely to be more price elastic ?
A In the short run rather than the long run
B If factors of production are relatively immobile between industries
C If there are very few producers
D If it is easy to expand output
Correct Answer: If it is easy to expand output
Which best describes a supply curve ?
A The quantity consumers would like to buy in an ideal world
B The quantity producers are willing and able to sell at each and every price all other things unchanged
C The quantity producers are willing and able to sell at each and every income all other things unchanged
D The quantity producers are willing and able to sell at each and every point in time all other things unchanged
Correct Answer: The quantity producers are willing and able to sell at each and every price all other things unchanged
For an inferior good ?
A The price elasticity of demand is negative: the income elasticity of demand is negative
B The price elasticity of demand is positive the income elasticity of demand is negative
C The price elasticity of demand is negative the income elasticity of demand is positive
D The price elasticity of demand is positive the income elasticity of demand is positive
Correct Answer: The price elasticity of demand is negative: the income elasticity of demand is negative
Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A 550 units
B 500 units
C 450 units
D 490 units
Correct Answer: 450 units
The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?
A 3000
B 7000
C 5500
D 4500
Correct Answer: 7000
If the price elasticity of demand is unit then a fall in price ?
A Reduces revenue
B Leaves revenue unchanged
C Increase revenue
D Reduces costs
Correct Answer: Leaves revenue unchanged
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
A Demand is price inelastic
B The good is inferior
C Income elasticity is -2
D The product is normal
Correct Answer: The product is normal
If a product is a vablen good ?
A Demand is inversely related to income
B Demand is inversely related to price
C Demand is directly related to price
D Demand is inversely related to the price of substitutes
Correct Answer: Demand is directly related to price
An increase in the price of a complement for product A would ?
A Shift demand for Product A outwards
B Shift demand for product A inwards
C Shift supply for product A outwards
D Shift supply for product A inwards
Correct Answer: Shift demand for product A inwards
If marginal utility is zero ?
A Total utility is zero
B An additional unit of consumption will decrease total utility
C An additional unit of consumption will increase total utility
D Total utility is maximized
Correct Answer: Total utility is maximized
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