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: Depreciation of currency increases
A) Domestic price
B) Investment risk
C) Exports competitiveness
D) Imports
Q: Price elasticity is unitary when
A) % change in price = % change in quantity
B) Price stays fixed
C) Demand is zero
D) Demand is infinite
Q: Cost-push inflation is caused by
A) Tax cuts
B) Money supply drop
C) Rising demand
D) Higher production costs
Q: Mixed economy features both
A) Imports and exports
B) Public and private sectors
C) Inflation and deflation
D) Agriculture and industry
Q: Microeconomics focuses on
A) Trade balances
B) Individual units
C) National issues
D) Currency exchange
Q: Law of demand assumes
A) All variables change
B) Income doubles
C) Other factors constant
D) Government controls
Q: Fixed capital includes
A) Machinery
B) Labor
C) Fuel
D) Raw materials
Q: Money serves as a
A) Production factor
B) Wage determinant
C) Medium of exchange
D) Luxury item
Q: Profit maximization is a goal of
A) NGOs
B) Governments
C) Consumers
D) Firms
Q: Central bank regulates
A) Wages
B) Stock prices
C) Prices of goods
D) Money supply