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: Primary sector includes
A) Services
B) Retail
C) Agriculture
D) Manufacturing
✅ Correct Answer: C
Explanation: It involves extraction of natural resources like farming and fishing.
Q: Cost-benefit analysis compares
A) Income and expenses
B) Supply and demand
C) Prices and wages
D) Benefits and costs
✅ Correct Answer: D
Explanation: It helps assess the economic viability of a decision.
Q: Monetary policy tools include
A) Export quotas
B) Infrastructure
C) Interest rates
D) Tax rebates
✅ Correct Answer: C
Explanation: Interest rate manipulation is a key tool in monetary policy.
Q: Price floor results in
A) Balance
B) Scarcity
C) Shortage
D) Surplus
✅ Correct Answer: D
Explanation: A minimum price can lead to supply exceeding demand.
Q: Specialization leads to
A) Increased productivity
B) High inflation
C) Lower employment
D) Devaluation
✅ Correct Answer: A
Explanation: Specialization improves output and efficiency.