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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

If a market generates a side effect or externlity then free market solutions ?
A maximize producer surplus
B are efficient
C are inefficient
D are equitable
Correct Answer: are inefficient
If a producer has market power (can influence the price of the product in the market) then free market solutions ?
A are equitable.
B are efficient
C maximize consumer surplus
D are inefficient
Correct Answer: are inefficient
If buyers are rational and there is no market failure ?
A free market solutions are efficient
B free market solutions maximize total surplus
C all of these answers
D free market solutions are equitable
Correct Answer: free market solutions are efficient
Adam smith’s invisible hand concept suggests that a competitive market outcome ?
A maximizes total surplus
B generates equality among the members of society
C minimizes total surplus
D both maximizes total surplus and generates equality among the members of society
Correct Answer: maximizes total surplus
Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?
A Rs500
B Rs300
C Rs200
D Rs400
Correct Answer: Rs300
The seller’s cost of production is ?
A none of these answers.
B the minimum amount the seller is willing to accept for a good
C the seller’s producer surplus
D the maximum amount the seller is willing to accept for a good
Correct Answer: the minimum amount the seller is willing to accept for a good
If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then ?
A total surplus is maximized
B the value placed on the last unit production by buyers exceeds the cost of production.
C producer surplus is maximized
D the cost of production on the last unit produced exceeds the value placed on it by buyers.
Correct Answer: the value placed on the last unit production by buyers exceeds the cost of production.
Producer surplus is the area ?
A below the supply curve and above the price
B below the demand curve and above the supply curve
C below the demand curve and above the price
D above the demand curve and below the price
Correct Answer: above the demand curve and below the price
An increase in the price of a good along a stationary demand curve ?
A improves the material welfare of the buyers.
B decrease consumer surplus
C improves market efficiency.
D increase consumer surplus.
Correct Answer: decrease consumer surplus
A buyer’s willingness to pay is that buyer’s ?
A minimum amount they are willing to pay for a good
B producer surplus.
C consumer surplus
D maximum amount they are willing to pay for a good
Correct Answer: maximum amount they are willing to pay for a good
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