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

1. What does the production possibility curve represent?

B) The maximum output of two goods

A) The minimum output of two goods

D) The total output of a single good

C) The average output of two goods

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

A) Changing the interest rate

B) Altering the money supply

D) Changing reserve requirements

C) Government spending on infrastructure

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

D) Free entry and exit of firms

B) Product differentiation

C) Single seller

A) Few sellers

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

B) Labor

A) Money

C) Imports

D) Exports

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

B) Economic equilibrium

D) Monopoly

A) Market failure

C) Perfect competition

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

C) Total revenue / Quantity demanded

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

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

D) Quantity supplied / Quantity demanded

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

C) Mixed economy

D) Inflationary economy

A) Capitalism

B) Socialism

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

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

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

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

C) (Labor force / Total population) × 100

9. What is the basic economic problem?

C) Scarcity

D) Deflation

B) Inflation

A) Unemployment

10. What is Gross Domestic Product (GDP)?

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

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

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

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

11. 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

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

A) Demand-pull inflation

D) Hyperinflation

B) Cost-push inflation

C) Built-in inflation

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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