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: Supply curve usually slopes
A) Upward
B) Downward
C) Horizontally
D) Vertically
Q: Consumption refers to
A) Exporting goods
B) Using goods and services to satisfy wants
C) Investment in business
D) Saving income
Q: A recession is characterized by
A) Rising employment
B) Rapid economic growth
C) Negative GDP growth
D) Stable prices
Q: Market equilibrium occurs when
A) Price is zero
B) Quantity demanded equals quantity supplied
C) Supply is infinite
D) Demand is zero
Q: Public goods are distinguished by
A) High prices
B) Excludability
C) Rival consumption
D) Non-excludability
Q: Saving increases when
A) Income decreases
B) Interest rate falls
C) Future uncertainty rises
D) Inflation increases
Q: In the short run, at least one factor of production is
A) Variable
B) Redundant
C) Fixed
D) Liquid
Q: A tariff is a type of
A) Export subsidy
B) Tax on imports
C) Foreign loan
D) Quota
Q: Subsidies are provided by governments to
A) Raise prices
B) Discourage production
C) Encourage consumption or production
D) Tax the poor
Q: Monopoly exists when
A) Many firms sell differentiated products
B) Only one seller controls the market
C) Prices are fixed by government
D) Free trade occurs