Economics MCQs
Economics MCQs cover foundational and advanced economic theories and models. These questions are ideal for students and candidates preparing for competitive exams like CSS and PMS. The content includes microeconomics, macroeconomics, market structures, monetary and fiscal policy, economic development, and international trade. These MCQs are structured to test conceptual clarity and real-world application of economic principles. They aid in enhancing analytical reasoning and economic problem-solving skills.
Q: The basic problem of economics is related to
A) Inflation
B) Scarcity
C) Monopoly
D) Efficiency
Q: Resources used in the production of goods and services are collectively known as
A) Capital
B) Inputs
C) Factors of production
D) Utilities
Q: Marginal cost refers to
A) Total cost
B) Additional cost of producing one more unit
C) Fixed cost
D) Average cost
Q: Demand increases when
A) Price increases
B) Income decreases
C) Substitute price rises
D) Complementary price rises
Q: Elasticity of demand measures
A) Inflation
B) Responsiveness of demand to price change
C) Interest rate
D) Production capacity
Q: A perfectly competitive market features
A) Single seller
B) Price maker
C) Product differentiation
D) Large number of buyers and sellers
Q: GDP stands for
A) General Development Policy
B) Gross Domestic Product
C) Government Development Plan
D) Global Demand Projection
Q: An increase in general price levels is termed
A) Deflation
B) Inflation
C) Recession
D) Stagnation
Q: Monetary policy is mainly controlled by
A) Parliament
B) Ministry of Commerce
C) Central Bank
D) Stock Exchange
Q: Opportunity cost is best described as
A) Money spent
B) Value of the next best alternative foregone
C) Production cost
D) Waste incurred