Explore topic-wise MCQs in Economics Mcqs.

This section includes 71 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.

51.

On a graph, a positive linear relationship___________________?

A. moves down to the right
B. moves up to the left
C. moves up to the right
D. moves down to the left
Answer» D. moves down to the left
52.

The public sector includes ?

A. Investors owning companies
B. Government ownership of assets
C. Market forces of supply and demand
D. All trade via barter
Answer» E.
53.

If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?

A. 20%
B. 2%
C. 12%
D. 16%
Answer» B. 2%
54.

The Phillips curve shows that ?

A. the business cycle has been eliminated
B. an increase in inflation temporarily increases unemployment.
C. inflation and unemployment are unrelated in the short run.
D. a decrease in inflation temporarily increases unemployment.
E. none of these
Answer» E. none of these
55.

In a command (planned) economy ?

A. The price mechanism acts as an incentive
B. Resources are allocated by market forces
C. Individual firms make decisions for themselves about what to produce and how to produce it
D. The public sector is large
Answer» C. Individual firms make decisions for themselves about what to produce and how to produce it
56.

The sacrifice involved when you choose a particular course of action is called the ?

A. Alternative
B. Opportunity cost
C. Consumer cost
D. Producer cost
Answer» C. Consumer cost
57.

Foreign trade ?

A. increase the scarcity of resources.
B. makes a country more equitable.
C. allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
D. None of these
Answer» D. None of these
58.

Which of the following situations describes the greatest market power ?

A. Subaru’s impact on the price f cars
B. a farmer’s impact on the price of corn
C. Microsoft’s impact on the price of desktop operating systems
D. a student’s impact on college tuition
Answer» D. a student’s impact on college tuition
59.

The free market involves ?

A. The free provision of products
B. The Subsidizing of products by the government
C. Market forces of supply and demand
D. All trade via barter
Answer» D. All trade via barter
60.

Which of the following activities is most likely to produce an externality?

A. A student eats a hamburger in the student union.
B. A student reads a novel for pleasure
C. A student sits at home and watches T.V
D. A student has a party in her room in the student hall of residence.
Answer» E.
61.

Raising taxes and increasing welfare payments ?

A. reduces market power
B. Proves that there is such a thing as a free lunch
C. improves efficiency at the expense of equity.
D. improves equity at the expense of efficiency.
Answer» E.
62.

Which of the following involves a trade – off ?

A. Taking a nap
B. All of these answers involve trade-offs
C. Watching a football game on Saturday afternoon
D. Going to university
Answer» C. Watching a football game on Saturday afternoon
63.

Economics is the study of ?

A. how society manages its unlimited resource
B. how to reduce our wants until we are satisfied.
C. how to fully satisfy our unlimited wants
D. how to avoid having to make trade-offs
Answer» C. how to fully satisfy our unlimited wants
64.

A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?

A. capital consumption frontier.
B. Lorenz curve
C. Circular-flow diagram
D. Production possibility curve
Answer» E.
65.

The circular flow of goods and incomes shows the relationship between?

A. Wages and salaries.
B. income and money
C. goods and services
D. firms and households
Answer» C. goods and services
66.

In a planned or command economy, all the economics decisions are taken by the ?

A. Consumers
B. voters
C. government
D. Workers
Answer» D. Workers
67.

Human wants are_______________?

A. Always fixed
B. Limited
C. Unlimited
D. Likely to decrease over time
Answer» D. Likely to decrease over time
68.

Resources in an economy ?

A. Are always found
B. Can never decease
C. Always increase over time
D. Are limited at any moment in time
Answer» E.
69.

The sacrifice involved when you choose a particular course of action is called the?

A. Alternative
B. Opportunity cost
C. Consumer cost
D. Producer cost
Answer» C. Consumer cost
70.

Which of the following is not one of the basic economic s ?

A. What to produce
B. Who to produce for
C. How to produce
D. How to maximize economic growth
Answer» E.
71.

The concept of opportunity cost ?

A. is relevant only for a capitalist economy like the United States.
B. Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve
C. Suggests all our wants can be achieved
D. Would be relevant if we eliminated poverty
Answer» C. Suggests all our wants can be achieved