+2 | Bachelors | Masters | Quiz | MCQ | Multiple Choice Questions

1. What is the formula for calculating the price elasticity of demand?

A) Percentage change in quantity demanded / Percentage change in price

D) Quantity supplied / Quantity demanded

B) Percentage change in price / Percentage change in quantity demanded

C) Total revenue / Quantity demanded

2. What is the main objective of monetary policy?

D) Reduce income inequality

B) Increase government spending

A) Regulate the economy’s money supply

C) Decrease unemployment benefits

3. Which of the following is a characteristic of a perfectly competitive market?

C) Single seller

B) Product differentiation

A) Few sellers

D) Free entry and exit of firms

4. Which of the following is an example of fiscal policy?

D) Changing reserve requirements

C) Government spending on infrastructure

A) Changing the interest rate

B) Altering the money supply

5. What is the basic economic problem?

C) Scarcity

D) Deflation

B) Inflation

A) Unemployment

6. What is the term for a situation where the market does not allocate resources efficiently?

B) Economic equilibrium

C) Perfect competition

D) Monopoly

A) Market failure

7. Which of the following is not a type of economic system?

C) Mixed economy

B) Socialism

A) Capitalism

D) Inflationary economy

8. What is Gross Domestic Product (GDP)?

A) The total value of goods and services produced by a country’s citizens

B) The total value of goods and services consumed in a country

D) The total value of goods and services imported by a country

C) The total value of goods and services produced within a country

9. What is the formula for calculating the unemployment rate?

C) (Labor force / Total population) × 100

D) (Total population / Number of unemployed) × 100

A) (Number of unemployed / Labor force) × 100

B) (Number of employed / Labor force) × 100

10. Which type of inflation is caused by an increase in the cost of production?

B) Cost-push inflation

D) Hyperinflation

C) Built-in inflation

A) Demand-pull inflation

11. What does the production possibility curve represent?

C) The average output of two goods

B) The maximum output of two goods

A) The minimum output of two goods

D) The total output of a single good

12. Which of the following is a factor of production?

A) Money

B) Labor

C) Imports

D) Exports

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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