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

1. What is the main objective of monetary policy?

C) Decrease unemployment benefits

D) Reduce income inequality

A) Regulate the economy’s money supply

B) Increase government spending

2. What does the production possibility curve represent?

A) The minimum output of two goods

C) The average output of two goods

D) The total output of a single good

B) The maximum output of two goods

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

D) Monopoly

B) Economic equilibrium

A) Market failure

C) Perfect competition

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

A) Capitalism

B) Socialism

D) Inflationary economy

C) Mixed economy

5. What is the basic economic problem?

B) Inflation

D) Deflation

A) Unemployment

C) Scarcity

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

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

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

C) Total revenue / Quantity demanded

D) Quantity supplied / Quantity demanded

7. 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

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

C) Government spending on infrastructure

A) Changing the interest rate

D) Changing reserve requirements

B) Altering the money supply

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

C) Single seller

A) Few sellers

B) Product differentiation

D) Free entry and exit of firms

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

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

C) (Labor force / Total population) × 100

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

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

11. What is Gross Domestic Product (GDP)?

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

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

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

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

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

C) Imports

B) Labor

A) Money

D) Exports

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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