Economics MCQs
Economics MCQs for CSS, PMS, and competitive exams covering microeconomics, macroeconomics, market structures, fiscal and monetary policy, development, and trade. Test conceptual clarity, analytical skills, and real-world application of economic principles.
Q: Central bank controls
A) Fiscal policy
B) Industrial policy
C) Monetary policy
D) Trade policy
✅ Correct Answer: C
Explanation: Central banks manage a nation's money supply through monetary policy.
Q: Supply curve shifts rightward when
A) Demand falls
B) Prices fall
C) Costs rise
D) Production rises
✅ Correct Answer: D
Explanation: An increase in production shifts the supply curve to the right.
Q: Consumers aim to maximize
A) Revenue
B) Output
C) Satisfaction
D) Profit
✅ Correct Answer: C
Explanation: Consumers seek to derive maximum utility or satisfaction from their purchases.
Q: Capital is categorized as
A) Free good
B) Natural resource
C) Man-made resource
D) Renewable resource
✅ Correct Answer: C
Explanation: Capital includes tools and machinery made by humans to aid production.
Q: An economic system must answer
A) Where to export
B) When to deliver
C) What to produce
D) How to advertise
✅ Correct Answer: C
Explanation: Economic systems determine what goods and services should be produced.