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: Free market operates through
A) Demand and supply
B) Trade unions
C) Central planning
D) Government laws
Q: Total revenue equals
A) Cost × Time
B) Profit × Output
C) Wage × Hours
D) Price × Quantity
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