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Economics MCQs: Test Your Knowledge and Boost Your Understanding

Are you ready to dive into some thought-provoking Economics MCQs? Our comprehensive collection of Economics MCQs is designed to challenge and enhance your understanding of key economic concepts. Whether you’re preparing for exams, looking to improve your knowledge for professional growth, or just interested in economic theories and applications, our Economics MCQs offer valuable insights and practice. Explore topics ranging from market dynamics and economic policies to global financial systems and microeconomics.

General Knowledge (GK) MCQs: Expand Your Knowledge Horizons

In addition to Economics MCQs, we provide a diverse range of General Knowledge (GK) MCQs to test and broaden your overall knowledge. Our GK MCQs cover a variety of subjects, ensuring you have a well-rounded grasp of general knowledge. Perfect for quiz enthusiasts, students, and anyone eager to learn more about the world, our General Knowledge (GK) MCQs are designed to keep you informed and engaged.

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Which term refers to the practice of encouraging private sector investment through government incentives or subsidies?

A. Crowding In
B. Crowding Out
C. Market Failure
D. Economic Stimulus

Answer: Crowding In

Which economic term describes the cost of producing an additional unit of output?

A. Marginal Cost
B. Average Cost
C. Fixed Cost
D. Total Cost

Answer: Marginal Cost

Which term describes the concept that as the quantity of a good consumed increases, the additional satisfaction gained from consuming each additional unit decreases?

A. Diminishing Marginal Utility
B. Increasing Marginal Utility
C. Constant Marginal Utility
D. Negative Marginal Utility

Answer: Diminishing Marginal Utility

Which term refers to the process by which central banks adjust interest rates and influence money supply to control inflation and stabilize the economy?

A. Monetary Policy
B. Fiscal Policy
C. Trade Policy
D. Regulatory Policy

Answer: Monetary Policy

Which economic term refers to a situation where resources are allocated in a way that no one can be made better off without making someone else worse off?

A. Pareto Efficiency
B. Market Efficiency
C. Allocative Efficiency
D. Productive Efficiency

Answer: Pareto Efficiency

Which term refers to the total amount of money a firm earns from selling its goods and services, before accounting for costs?

A. Gross Revenue
B. Net Revenue
C. Total Revenue
D. Operating Income

Answer: Total Revenue

Which term describes the effect of an increase in government spending on overall economic activity?

A. Multiplier Effect
B. Crowding Out
C. Income Effect
D. Substitution Effect

Answer: Multiplier Effect

Which economic concept refers to the increase in total output resulting from an increase in the quantity of inputs?

A. Returns to Scale
B. Marginal Returns
C. Diminishing Returns
D. Increasing Returns

Answer: Returns to Scale

Which term refers to the situation where the government uses tax revenue to provide benefits and support to its citizens?

A. Welfare State
B. Social Security
C. Universal Basic Income
D. Public Assistance

Answer: Welfare State