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: Substitute goods are identified by
A) Joint consumption
B) Complementary pricing
C) Similar function and price sensitivity
D) Fixed supply
Q: A country experiences stagflation when
A) Growth is high and inflation is low
B) Growth is high and unemployment is low
C) Inflation and unemployment are both high
D) Interest rates are negative
Q: Commercial banks create money through
A) Taxation
B) Government spending
C) Issuing bonds
D) Lending activity
Q: Human capital refers to
A) Natural resources
B) Government labor force
C) Skills and knowledge of the workforce
D) Physical infrastructure
Q: Consumer surplus arises when
A) Price equals marginal utility
B) Consumer pays more than expected
C) Willingness to pay exceeds actual price
D) Supply exceeds demand