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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

A supply curve that starts at the origin has ?
A A price elasticity of supply greater than one
B A price elasticity of supply equal to one
C A price elasticity of supply less than one
D A positive price elasticity of supply
Correct Answer: A price elasticity of supply equal to one
If a 4% increase in price leads to a increase in the quantity supplied of 8% ?
A Supply is price elastic
B Supply is income elastic
C Price elasticity of demand is -2
D Price elasticity of supply is -2
Correct Answer: Supply is price elastic
For a normal 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 positive
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
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
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
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
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
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
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
Correct Answer: shift demand for an inferior product inward
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