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: Foreign Direct Investment (FDI) refers to
A) Government bonds
B) Investments made abroad by nationals
C) Investment by foreigners in domestic industries
D) Exports
Q: Unemployment is measured as a percentage of the
A) Entire population
B) Employed population
C) Labor force
D) Working children
Q: Progressive taxation implies that
A) Everyone pays the same tax
B) Rich pay a smaller share
C) Poor pay more
D) Higher income leads to higher tax rate
Q: Balance of trade represents
A) Difference between income and expenditure
B) Gap between exports and imports
C) Budget allocation
D) Currency reserve
Q: Aggregate demand includes
A) Only household demand
B) Only government spending
C) Total demand in an economy
D) Only exports