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: Consumer goods are meant for
A) Final use
B) Resale
C) Export
D) Production
✅ Correct Answer: A
Explanation: They are used directly by consumers, not for further production.
Q: Demand curve slopes downward due to
A) Profit margins
B) Law of demand
C) Supply cost
D) Budget deficit
✅ Correct Answer: B
Explanation: As price decreases, consumers buy more, forming a downward slope.
Q: Balance of payments includes
A) Budget deficit
B) Current and capital accounts
C) Tax surplus
D) GDP and GNP
✅ Correct Answer: B
Explanation: It records a nation’s economic transactions with the rest of the world.
Q: Inferior goods have negative
A) Cost relation
B) Price elasticity
C) Supply effect
D) Income elasticity
✅ Correct Answer: D
Explanation: Their demand decreases when consumer income increases.
Q: Investment in infrastructure is a part of
A) Capital expenditure
B) Imports
C) Transfer payments
D) Current expenditure
✅ Correct Answer: A
Explanation: Such investments are long-term and fall under capital spending.