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: Demand increases when
A) Cost increases
B) Supply increases
C) Price falls
D) Price rises
Q: The basic problem in economics arises due to
A) Money
B) Investment
C) Inflation
D) Scarcity
Q: Central bank controls
A) Fiscal policy
B) Industrial policy
C) Monetary policy
D) Trade policy
Q: Supply curve shifts rightward when
A) Demand falls
B) Prices fall
C) Costs rise
D) Production rises
Q: Consumers aim to maximize
A) Revenue
B) Output
C) Satisfaction
D) Profit
Q: Capital is categorized as
A) Free good
B) Natural resource
C) Man-made resource
D) Renewable resource
Q: An economic system must answer
A) Where to export
B) When to deliver
C) What to produce
D) How to advertise
Q: Elasticity of demand measures
A) Income level
B) Production rate
C) Supply increase
D) Responsiveness to price
Q: Opportunity cost refers to
A) Next best alternative
B) Extra expense
C) Total cost
D) Production cost
Q: An example of a fixed cost is
A) Raw material
B) Fuel cost
C) Rent
D) Electricity bill