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: Giffen goods are those whose demand
A) Remains constant
B) Rises with price
C) Falls with price
D) Disappears with subsidy
✅ Correct Answer: B
Explanation: Giffen goods are inferior goods that defy the typical demand law.
Q: Entrepreneur earns
A) Rent
B) Profit
C) Commission
D) Wage
✅ Correct Answer: B
Explanation: Entrepreneurs are rewarded with profit for taking business risks.
Q: Law of supply states that
A) Demand creates supply
B) Costs decrease with supply
C) Supply and price are unrelated
D) Price and supply move together
✅ Correct Answer: D
Explanation: As price increases, suppliers are willing to produce more.
Q: Central problem in all economies
A) Control of inflation
B) Increase in population
C) Allocation of scarce resources
D) Trade union power
✅ Correct Answer: C
Explanation: Economies must decide how to allocate limited resources efficiently.
Q: Barter system lacks
A) Production
B) Supply
C) Scarcity
D) Common medium
✅ Correct Answer: D
Explanation: Without money, barter makes trade inefficient due to double coincidence of wants.