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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

The opportunity cost of a good is______________?
A the time lost in finding it
B the quantity of other goods sacrificed to get another unit of that good
C the expenditure on the good
D the loss of interest in using savings
Correct Answer: the quantity of other goods sacrificed to get another unit of that good
Productivity can be increased by ?
A improving the education of workers
B raising union wages.
C raising minimum wages.
D restricting trade with foreign countries.
Correct Answer: improving the education of workers
You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?
A Rs 300
B Rs 1000
C Rs 500
D Rs 800
Correct Answer: Rs 800
The Phillips curve shows that ?
A the business cycle has been eliminated
B an increase in inflation temporarily increases unemployment.
C inflation and unemployment are unrelated in the short run.
D a decrease in inflation temporarily increases unemployment.
Correct Answer: a decrease in inflation temporarily increases unemployment.
Workers in Western Europe enjoy a high standard of living because ?
A the countries of Western Europe have set high minimum wage rates.
B Unions in Western Europe keep the wage high
C none of these answers.
D The countries of Western Europe have protected their industries from foreign corporation
Correct Answer: none of these answers.
Which of the following situations describes the greatest market power ?
A Subaru’s impact on the price f cars
B a farmer’s impact on the price of corn
C Microsoft’s impact on the price of desktop operating systems
D a student’s impact on college tuition
Correct Answer: Microsoft’s impact on the price of desktop operating systems
Which of the following activities is most likely to produce an externality?
A A student eats a hamburger in the student union.
B A student reads a novel for pleasure
C A student sits at home and watches T.V
D A student has a party in her room in the student hall of residence.
Correct Answer: A student has a party in her room in the student hall of residence.
Foreign trade ?
A increase the scarcity of resources.
B makes a country more equitable.
C allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
D None of these
Correct Answer: allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
Raising taxes and increasing welfare payments ?
A reduces market power
B Proves that there is such a thing as a free lunch
C improves efficiency at the expense of equity.
D improves equity at the expense of efficiency.
Correct Answer: improves equity at the expense of efficiency.
Economics is the study of ?
A how society manages its unlimited resource
B how to reduce our wants until we are satisfied.
C how to fully satisfy our unlimited wants
D how to avoid having to make trade-offs
Correct Answer: how to reduce our wants until we are satisfied.
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