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: The term ‘invisible hand’ is associated with
A) Karl Marx
B) John Maynard Keynes
C) Adam Smith
D) Alfred Marshall
Q: Primary sector in an economy deals with
A) Manufacturing
B) Services
C) Natural resources extraction
D) Technology
Q: Substitute goods are identified by
A) Joint consumption
B) Complementary pricing
C) Similar function and price sensitivity
D) Fixed supply
Q: A country experiences stagflation when
A) Growth is high and inflation is low
B) Growth is high and unemployment is low
C) Inflation and unemployment are both high
D) Interest rates are negative
Q: Commercial banks create money through
A) Taxation
B) Government spending
C) Issuing bonds
D) Lending activity
Q: Human capital refers to
A) Natural resources
B) Government labor force
C) Skills and knowledge of the workforce
D) Physical infrastructure
Q: Consumer surplus arises when
A) Price equals marginal utility
B) Consumer pays more than expected
C) Willingness to pay exceeds actual price
D) Supply exceeds demand
Q: Under monopolistic competition, firms produce
A) Homogeneous goods
B) Identical products
C) Differentiated products
D) No goods
Q: Transfer payments include
A) Corporate profits
B) Government salaries
C) Unemployment benefits
D) Investment income
Q: National income accounting includes
A) Black market earnings
B) Illegal income
C) Legal production within a country
D) Double counting