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Economics MCQs – Competitive Introduction To Economics MCQs ( Economics ) MCQs

Economics MCQs – Competitive Introduction To Economics MCQs ( Economics ) MCQs

This post is comprising of latest ” ( Economics ) MCQs – Latest Competitive Medical MCQs “. Here you’ll get latest Economics mcqs for written test, interview with answers. If you want to improve your knowledge regarding Economics then read these mcqs of Design of Steel Structures.

Latest Economics MCQs

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Latest Introduction To Economics Mcqs ( Economics ) Mcqs

The most occurred mcqs of Introduction To Economics Mcqs ( Economics ) in past papers. Past papers of Introduction To Economics Mcqs ( Economics ) Mcqs. Past papers of Introduction To Economics Mcqs ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Introduction To Economics Mcqs ( Economics ) Mcqs. The Important series of Introduction To Economics Mcqs ( Economics ) Mcqs are given below:

A supply curve is directly affected by ?

A. input costs
B. technology
C. government regulation
D. all of the above

when a market is in equilibrium ?

A. Excess demand and excess supply are zero
B. quantity demanded equals quantity supplied
C. The market is cleared by the equilibrium price
D. All of the above

If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of ?

A. a nonlinear relationship
B. a scatter diagrams
C. a positive linear relationship
D. a negative linear relationship

A straight-line diagram can be drawn knowing the ________ and ________?

A. intercept and slope
B. vertical axis and horizontal axis
C. scale and slope
D. intercept and scale

A real value can be derived from a nominal value by ?

A. adjusting for data collection errors
B. adjusting for changes over time
C. adjusting for population changes
D. adjusting or changes in prices

Time series data show information ?

A. about different variables over different places
B. about different points in time over the same variable
C. about the same point in time over different places
D. about different points in time over different places

Macroeconomics is the study of ?

A. household purchase decisions
B. the relationship between different sectors on the economy
C. individual building blocks in the economy
D. the economy as a whole

In the mixed economy________________?

A. economics problems are solved by the government and market
B. economic allocation is achieved by the invisible hand
C. economic decisions are made by the private sector and free market
D. economics s is solved by government departments

A market can accurately be described as_________________?

A. a place to sell things
B. a place to buy things
C. the process by which prices adjust to reconcile the allocation of resources
D. a place where buyers and sellers meet

Economics is the study of ?

A. Consumption decisions
B. Production technology
C. how society decides what how and for whom to produce
D. the best way to run society

Which of the following is not part of the opportunity cost of going on holiday ?

A. The money you spend on airline tickets
B. The money you could have made if you had stayed at home and worked
C. The money you spent on a theater show
D. the money you spent on food

An increase in the price of beef providers information which ?

A. provides no information because prices in a market system are managed by planning boards.
B. tells consumers to buy more beef.
C. tells producers to produce more beef.
D. tells consumers to buy less pork

High and persistent inflation is caused by ?

A. unions increasing wages too much
B. governments increasing the quantity of money too much
C. OPEC raising the price of oil too much
D. regulations raising the cost of production too much

Which of the following statements is true about a market economy ?

A. The strength of a market system is that it tends to distribute resources evenly across consumers.
B. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare
C. With a large enough computer, central planners could guide production more efficiently than markets.
D. Taxes help prices communicate costs and benefits to producers and consumers.

Which of the following products would be least capable of producing an externality ?

A. cigarettes
B. inoculations against disease
C. food
D. education
E. stereo equipment

-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?

A. fewer students will attend university
B. fewer students will take degree courses in education and more will take accounting courses
C. Fewer students will take degree courses in education and more will take accounting courses.
D. None of these

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ?

A. Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game.
B. Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.
C. nothing because you found the money.
D. Rs20 (because you could have used the Rs20 to buy other ghings)
E. None of these

A rational person does not act unless ?

A. The action produces marginal costs that exceed marginal benefits.
B. the action is ethical
C. The action produces marginal benefits that exceed marginal costs.
D. The action makes money for the person.

Trade-offs are required because wants are unlimited, and resources are ?

A. unlimited
B. economical
C. Efficient
D. Scarce

Which one of the following is a normative statement ?

A. The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent
B. The proportion of people’s income paid in taxes is higher under this government than under the previous one.
C. Inflation is rising
D. Inequality in the distribution of income is a more serious problem than unemployment

In a free market system, the amount of goods and services that any one household gets depends upon its ?

A. wealth
B. income and wealth
C. income
D. wage and interest income

Periods of less than full employment corresponds to _________________ ?

A. points on the production possibility curve
B. either points inside or outside the production possibility curve.
C. points outside the production possibility curve
D. points inside the production possibility curve.

Opportunity cost is_________________?

A. the additional benefit of buying an additional unit of a product
B. a cost that cannot be avoided. regardless of what is done in the future
C. that which we forgo, or give up, when we make a choice or a decision.
D. the cost incurred in the past before we make a decision about what to do in the future.

A student chooses to study because the marginal benefit is greater than the ______________ cost?

A. expected
B. average
C. total
D. marginal

Unemployment means that ?

A. people are not willing to work at the going wage rate.
B. there are some people who will not work at the going wage rate.
C. there is excess demand in the labour market
D. at the going wage rate, there are people who want to work but cannot find work.

Basics Of Economics MCQs

Inflation is___________________?

A. an increase in the overall level of economic activity.
B. an increase in the overall price level.
C. a decrease in the overall price level.
D. a decrease in the overall level of economics activity

Aggregate supply is the total amount ?

A. Produced by the government.
B. of labor supplied by all households.
C. of goods and services produced in an economy.
D. of products produced by a given industry.

Microeconomics is not concerned with the behavior of ?

A. aggregate demand
B. Consumers
C. firms
D. industries.

The economics the central problem is ?

A. Scarcity
B. Consumption
C. Money
D. Allocation

The public sector includes ?

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

A mixed economy ?

A. Has demand but not supply
B. Has supply but not demand
C. Has supply and demand
D. Has market forces and government intervention

The basic economic problems will not be solved by ?

A. Government intervention
B. Market forces
C. A mixture of government intervention and the free market
D. The creation of unlimited resources

An increase in consumer income will increase demand for a _________ but decrease demand for a?

A. inferior good normal good
B. normal good inferior good
C. substitute good, inferior good
D. normal good, complementary good

If a price increase of good A increases the quantity demanded of good B, then good B is a________________?

A. substitute good
B. inferior good
C. bargain
D. complementary good

A demand curve can shift because changing ?

A. prices of related goods
B. incomes
C. tastes
D. all of the above

________ and ___________ do not directly affect the demand curve ?

A. consumer incomes, tastes
B. the price of related goods consumer income
C. the costs of production bank opening hours
D. the price of related goods preferences

The equilibrium price clears the market it is the price at which _________________?

A. Everything is sold
B. Buyers spend all their money
C. Excess demanded equals quantity
D. Quantity demanded equal quality supplied
E. C and D

When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?

A. Demand
B. Excess demand
C. Supply
D. Excess supply

On a graph, a positive linear relationship___________________?

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

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. 12%
C. 2%
D. 16%

The retail price index is used to__________________?

A. compare shop prices
B. construct price lists
C. measure changes in the cost of living
D. None of the above

Data are important in economics because _________ and ____________?

A. they suggest relationships for explanation, allow testing of hypotheses
B. they can be used in computers governments use them
C. they can be used for tables, they can be graphed
D. they provide interesting information can be summarized

If marginal benefit is greater than marginal cost, a rational choice involves ?

A. less of the activity
B. no more of the activity.
C. more of the activity
D. more or less, depending on the benefits of other activities

Normative economics Forms ________ based on ________?

A. positive statements, facts
B. positive statements values
C. opinions personal facts
D. opinions facts

In a free market?

A. government plan production
B. government intervenes
C. government interferes
D. Prices adjust to reconcile scarcity and desires

The opportunity cost of a good is______________?

A. the expenditure on the good
B. the quantity of other goods sacrificed to get another unit of that good
C. the time lost in finding it
D. the loss of interest in using savings

Productivity can be increased by ?

A. improving the education of workers
B. raising minimum wages.
C. raising union wages.
D. restricting trade with foreign countries.

You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?

A. Rs 1000
B. Rs 300
C. Rs 500
D. Rs 800

The Phillips curve shows that ?

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

Workers in Western Europe enjoy a high standard of living because ?

A. the countries of Western Europe have set high minimum wage rates.
B. The countries of Western Europe have protected their industries from foreign corporation
C. none of these answers.
D. Unions in Western Europe keep the wage high
E. Workers in the united states are highly productive

Which of the following situations describes the greatest market power ?

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

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 sits at home and watches T.V
C. A student reads a novel for pleasure
D. A student has a party in her room in the student hall of residence.

Foreign trade ?

A. makes a country more equitable.
B. increase the scarcity of resources.
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

Raising taxes and increasing welfare payments ?

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

Economics is the study of ?

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

Which of the following involves a trade – off ?

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

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

A. voters
B. Consumers
C. government
D. Workers

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

A. goods and services.
B. income and money
C. Wages and salaries.
firms and households

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. Lorenz curve.
B. capital consumption frontier.
C. Circular-flow diagram.
D. Production possibility curve.

The concept of opportunity cost ?

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

A recession is ?

A. a period of declining unemployment
B. a period of declining prices.
C. a period during which aggregate output declines.
D. a period of very rapidly declining prices.

The total demand for goods and services in an economy is known as_____________?

A. national demand.
B. gross national product.
C. economy-wide demand
D. aggregate demand

The study of inflation is part of ?

A. normative economics
B. descriptive economics
C. macroeconomics.
D. microeconomics

Macroeconomics deals with?

A. the behavior of firms
B. the behavior of the electronics industry
C. economics aggregates
D. the activities of individual units

Which of the following is a normative statement in economics ?

A. Higher taxes lead to less desire to work
B. More spending by the government reduces poverty
C. The Pakistan’s economy is growing fast relative to other SAARC members
D. The government should concentrate on reducing unemployment

In a command (planned) economy ?

A. The public sector is large
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 price mechanism acts as an incentive

The free market involves ?

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

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

A. Who to produce for
B. What to produce
C. How to produce
D. How to maximize economic growth

Human wants are_______________?

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

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

A. Consumer cost
B. Opportunity cost
C. Alternative
D. Producer cost

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

A. Consumer cost
B. Opportunity cost
C. Alternative
D. Producer cost

Resources in an economy ?

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

Economics MCQs – Competitive Introduction To Economics MCQs ( Economics ) MCQs