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

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

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

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

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

C) (Labor force / Total population) × 100

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

A) Money

C) Imports

D) Exports

B) Labor

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

B) Economic equilibrium

A) Market failure

D) Monopoly

C) Perfect competition

4. What is Gross Domestic Product (GDP)?

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

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

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

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

C) Built-in inflation

B) Cost-push inflation

D) Hyperinflation

A) Demand-pull inflation

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

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

D) Quantity supplied / Quantity demanded

C) Total revenue / Quantity demanded

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

7. What is the basic economic problem?

D) Deflation

B) Inflation

C) Scarcity

A) Unemployment

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

A) Few sellers

B) Product differentiation

D) Free entry and exit of firms

C) Single seller

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

C) Mixed economy

A) Capitalism

B) Socialism

D) Inflationary economy

10. 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

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

D) Changing reserve requirements

B) Altering the money supply

C) Government spending on infrastructure

A) Changing the interest rate

12. What is the main objective of monetary policy?

D) Reduce income inequality

C) Decrease unemployment benefits

A) Regulate the economy’s money supply

B) Increase government spending

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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