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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.

An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

A +2

B +0.5

C -2

D -0.5

Review Detailed Answer

Correct Answer: +0.5

An increase in price all other things unchanged leads to ?

A A shift in supply outwards

B A shift in supply inwards

C A contraction of supply

D An extension of supply

Review Detailed Answer

Correct Answer: An extension of supply

A contraction in supply occurs when ?

A Demand shifts outwards

B The supply curve shifts inwards

C The quantity supplied falls when the price falls

D The supply curve shifts outwards

Review Detailed Answer

Correct Answer: The quantity supplied falls when the price falls

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

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

Review Detailed Answer

Correct Answer: The product is normal

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

An increase in price all other things unchanged leads to ?

A contraction in supply occurs when ?

Supply is likely to be more price elastic ?

Which best describes a supply curve ?

For an inferior good ?

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 ?

The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?

If the price elasticity of demand is unit then a fall in price ?

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 ?