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: Oligopoly involves
A) Few sellers
B) Single buyer
C) Perfect competition
D) Free market
✅ Correct Answer: A
Explanation: Oligopoly is a market with a few large firms dominating.
Q: Inflation is measured using
A) Forex
B) GDP
C) CPI
D) GNP
✅ Correct Answer: C
Explanation: Consumer Price Index tracks the changes in prices of a basket of goods.
Q: Positive economics describes
A) Values
B) Norms
C) Facts and data
D) Opinions
✅ Correct Answer: C
Explanation: It explains economic phenomena based on factual analysis.
Q: Free market operates through
A) Demand and supply
B) Trade unions
C) Central planning
D) Government laws
✅ Correct Answer: A
Explanation: Free markets rely on voluntary exchange and price signals.
Q: Total revenue equals
A) Cost × Time
B) Profit × Output
C) Wage × Hours
D) Price × Quantity
✅ Correct Answer: D
Explanation: It is the total income received from selling goods or services.