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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 measure of the responsiveness of the quantity demanded of a good to a change in its price?

A. Price Elasticity of Demand
B. Income Elasticity of Demand
C. Cross Elasticity of Demand
D. Elasticity of Supply

Answer: Price Elasticity of Demand

Which economic term refers to the phenomenon where increased government spending leads to a reduction in private sector investment?

A. Crowding Out
B. Crowding In
C. Multiplier Effect
D. Leakage

Answer: Crowding Out

Which term describes the practice of governments setting a maximum price for a good to prevent it from becoming too expensive?

A. Price Ceiling
B. Price Floor
C. Subsidy
D. Tax

Answer: Price Ceiling

Which economic principle refers to the cost of foregoing the next best alternative when making a decision?

A. Opportunity Cost
B. Marginal Cost
C. Sunk Cost
D. Fixed Cost

Answer: Opportunity Cost

Which term refers to the amount of money a firm receives from selling its goods and services?

A. Total Revenue
B. Total Cost
C. Profit
D. Marginal Revenue

Answer: Total Revenue

Which term describes a decrease in the general price level of goods and services?

A. Deflation
B. Inflation
C. Disinflation
D. Stagflation

Answer: Deflation

Which economic concept refers to the practice of reducing the government budget deficit through increased revenue or reduced spending?

A. Fiscal Consolidation
B. Budget Surplus
C. Austerity
D. Debt Reduction

Answer: Fiscal Consolidation

Which term refers to the total value of goods and services produced by a country’s economy?

A. Gross Domestic Product (GDP)
B. Gross National Product (GNP)
C. Net National Product (NNP)
D. Gross National Income (GNI)

Answer: Gross Domestic Product (GDP)

Which term refers to a situation where there is a high level of unemployment alongside high inflation?

A. Stagflation
B. Recession
C. Hyperinflation
D. Disinflation

Answer: Stagflation