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: Law of diminishing returns applies when
A) Inputs increase beyond optimal
B) Costs decrease
C) Profits rise
D) Wages increase
Q: Division of labor enhances
A) Efficiency
B) Errors
C) Monotony
D) Costs
Q: Balance of trade is
A) Export minus import
B) Government expenditure
C) Taxes collected
D) GDP growth
Q: Subsidy encourages
A) Lower demand
B) Lower supply
C) More production
D) Costly goods
Q: Budget deficit occurs when
A) Trade gap narrows
B) Spending exceeds revenue
C) Revenue exceeds spending
D) Tax rate falls
Q: Labour is rewarded with
A) Wages
B) Interest
C) Rent
D) Profit
Q: Ceteris paribus means
A) Always constant
B) Other things equal
C) Average value
D) Never changing
Q: Giffen goods are those whose demand
A) Remains constant
B) Rises with price
C) Falls with price
D) Disappears with subsidy
Q: Entrepreneur earns
A) Rent
B) Profit
C) Commission
D) Wage
Q: Law of supply states that
A) Demand creates supply
B) Costs decrease with supply
C) Supply and price are unrelated
D) Price and supply move together