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

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

B) Economic equilibrium

D) Monopoly

C) Perfect competition

A) Market failure

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

B) Altering the money supply

A) Changing the interest rate

D) Changing reserve requirements

C) Government spending on infrastructure

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

D) Exports

A) Money

B) Labor

C) Imports

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

C) Mixed economy

D) Inflationary economy

A) Capitalism

B) Socialism

5. What is Gross Domestic Product (GDP)?

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

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

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

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

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

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

C) (Labor force / Total population) × 100

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

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

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

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

C) Total revenue / Quantity demanded

D) Quantity supplied / Quantity demanded

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

8. What is the basic economic problem?

B) Inflation

A) Unemployment

D) Deflation

C) Scarcity

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

A) Demand-pull inflation

D) Hyperinflation

C) Built-in inflation

B) Cost-push inflation

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

C) Single seller

B) Product differentiation

D) Free entry and exit of firms

A) Few sellers

11. What does the production possibility curve represent?

D) The total output of a single good

A) The minimum output of two goods

C) The average output of two goods

B) The maximum output of two goods

12. What is the main objective of monetary policy?

A) Regulate the economy’s money supply

C) Decrease unemployment benefits

B) Increase government spending

D) Reduce income inequality

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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