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

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

C) Perfect competition

B) Economic equilibrium

A) Market failure

D) Monopoly

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

A) Demand-pull inflation

C) Built-in inflation

B) Cost-push inflation

D) Hyperinflation

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. 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

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

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

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

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

C) (Labor force / Total population) × 100

6. What does the production possibility curve represent?

D) The total output of a single good

B) The maximum output of two goods

C) The average output of two goods

A) The minimum output of two goods

7. What is the main objective of monetary policy?

C) Decrease unemployment benefits

A) Regulate the economy’s money supply

D) Reduce income inequality

B) Increase government spending

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

D) Inflationary economy

A) Capitalism

C) Mixed economy

B) Socialism

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

A) Money

C) Imports

B) Labor

D) Exports

10. What is the basic economic problem?

A) Unemployment

B) Inflation

D) Deflation

C) Scarcity

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

B) Altering the money supply

C) Government spending on infrastructure

A) Changing the interest rate

D) Changing reserve requirements

12. 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

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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